Strategic misrepresentation is the deliberate and systematic distortion or misstatement of information for strategic purposes. It can occur in project planning, budgeting, and other organizational contexts, where individuals or groups intentionally provide false or misleading information to influence decision-making processes.
Intentional deception: It involves knowingly understating costs and overstating benefits when presenting projects for approval.
Motivation: People may engage in strategic misrepresentation for various reasons, including political bias, the need for appeasement, or to gain approval for their projects.
Impact on decision-making: This practice can lead to poor decision-making, as groups base their choices on inaccurate or incomplete information.
Prevalence: Research suggests that strategic misrepresentation is a significant issue, with some estimates indicating that 50% of large projects fail due to this problem.
Organisational culture: Strategic misrepresentation can create a toxic environment where trust is eroded, and individuals become less likely to share their ideas and perspectives openly.
To address strategic misrepresentation, organizations can implement several strategies:
– Provide independent views by separating project managers from sponsors
– Increase transparency in project data and processes
– Develop ethical use charters for project data
– Implement organisational policies and standards governing the quality and ethical use of project data
– Use data translators or champions to guide interpreting and utilising data effectively.
While strategic misrepresentation is generally viewed negatively, it’s worth noting that in some cases, such as whistleblowing, it can be used to expose corruption or unethical behaviour and bring about positive change.