Should a project continue when the remaining cost exceeds the remaining value?

Continuation decision

Reassess future costs, benefits, obligations, and exit consequences with the investment authority. Prior expenditure is relevant history but should not by itself justify further spending.

What to do now

  1. Estimate remaining value and cost
  2. Identify obligations and exit impacts
  3. Compare continuation with alternatives
  4. Obtain an authorized decision
Recommended action flow for continuation decision: Estimate remaining value and cost then Identify obligations and exit impacts then Compare continuation with alternatives then Obtain an authorized decision. Escalate when the project lacks a credible future justification or stopping creates serious obligations.

When to escalate

Escalate when

The project lacks a credible future justification or stopping creates serious obligations.

Who decides

The product or business benefit owner

Example

A sponsor compares finishing a smaller usable outcome with ending the remaining development.

Mistake to avoid

Continuing only because stopping would admit that earlier assumptions were wrong.

Prevent a repeat

Compare observed outcomes with the baseline and separate forecast benefits from benefits actually measured.

Suggested ApprovedFlow setup

  • Projects
  • Tasks
  • Documents

Keep the intended outcome and measurement plan with the project, and assign improvement work to an accountable business owner. See the platform

Related cases

Practice references