Idea 1
The Iron Law of Big Projects
Why do big projects so often go wrong? Bent Flyvbjerg’s research—spanning more than 16,000 projects—reveals a sobering truth he calls the Iron Law of Megaprojects: most large projects are over budget, behind schedule, and underdelivering on benefits. Only 8.5% meet cost and time targets, and a mere 0.5% hit cost, time, and benefit goals simultaneously. In short, failure is not an accident but a statistical pattern.
Fat Tails and the Window of Doom
Most people picture project risk using a reassuring bell curve, but Flyvbjerg’s data show that project outcomes follow fat-tailed distributions—extreme events are frequent, and the tails dominate the averages. Catastrophic cases like the James Webb Space Telescope (450% cost overrun) or Scotland’s Parliament Building (978%) aren’t exceptions; they are typical of fat-tailed domains like large IT, infrastructure, or defense programs. The longer a project drags, the more likely it is to be hit by external disruption—political shifts, pandemics, or literal "black swans." Flyvbjerg calls this the window of doom: every extra month widens the opening for chaos to enter.
Planning Against the Odds
To escape the Iron Law, you must first acknowledge that most projects aren’t safe bets. Forecasts need to anticipate fat tails rather than assume thin ones. Historical precedents—Colorado’s Big Dig, California’s High-Speed Rail, and countless IT systems—illustrate institutional blindness to tail risk. But projects like the Empire State Building or Nepal’s earthquake-resistant schools show success is possible through disciplined planning and modular design. These outliers prove that excellence requires experience and systematic preparation.
From Vision to Discipline
Big projects start with dreams—high-speed transport, dazzling architecture, economic transformation—but Flyvbjerg insists that vision untempered by realism is dangerous. Good strategy transforms ambition into data-informed design using methods like reference-class forecasting and modular repetition. Rather than build one colossal bespoke system, Flyvbjerg encourages us to think in repeatable units—our Lego bricks—that scale safely and predictably. (Note: this echoes Taleb’s argument in Antifragile that small iterations beat grand gambles.)
The book’s central journey is one from delusion to design. Flyvbjerg invites you to face uncomfortable evidence: megaprojects fail because humans think too optimistically, commit too soon, and plan too little. But by acknowledging fat-tailed risk, cultivating experience, and adopting proven heuristics, you can build reliably—even at world-changing scales.