All things product management
McKinsey examines how the circular economy model, which eliminates waste by designing products for reuse, repair, and recycling, is moving from theory to business practice. The article profiles companies successfully implementing circular strategies and quantifies the economic opportunity of shifting from linear take-make-waste to circular value chains.
The planning fallacy is the systematic tendency to underestimate time, costs, and risks while overestimating benefits, affecting over 85% of projects across all industries. Flyvbjerg's analysis of thousands of projects shows that optimism bias and strategic misrepresentation together cause average cost overruns of 28% in IT and 45% in infrastructure. Reference class forecasting, which bases estimates on outcomes of similar past projects rather than inside-view planning, reduces overruns by 50% or more.