Share to:

In the world of capital improvement programs (CIPs), we obsess over numbers—budgets, schedules, risk matrices. But what if one of the most powerful tools for successful program delivery isn’t technical at all? What if it’s psychological?

At FLAG, we believe the next evolution in program management consulting isn’t just better dashboards—it’s understanding the human behavior behind the data. Enter behavioral economics.

  1. Why Behavioral Economics Belongs in CIP Management
    Behavioral economics studies how people actually make decisions—not how they should. This matters in infrastructure projects, where decisions are made under pressure, with incomplete information, and by diverse stakeholders with different motivations.

Think about:

  • A city council delaying a vote due to sunk cost bias. 
  • A project manager underestimating a schedule due to optimism bias. 
  • A contractor overcommitting because of risk tolerance misalignment.

These aren’t just quirks—they’re hidden risk factors.

  1. Case in Point: Decision Fatigue in Approvals
    We’ve seen it: a CIP project slows not due to design or procurement but because decision-makers are overwhelmed. Behavioral research shows that as decision fatigue sets in, people default to inaction. Projects stall. Budgets bleed.

A well-timed intervention—such as bundling approvals, limiting unnecessary options, or rotating presentation formats—can reduce fatigue and accelerate timelines.

  1. From Gantt Charts to Choice Architecture
    Program controls already offer structure. But when we overlay choice architecture—intentionally designing how decisions are presented—we can guide stakeholders toward better, faster, more aligned decisions.

Instead of flooding a steering committee with options, present one preferred path and two vetted alternatives. Instead of listing risks by severity, show them relative to stakeholder-specific concerns. It’s still objective—but far more persuasive.

  1. Human-Centered Controls: FLAG’s Next Frontier
    At FLAG, we’re exploring how to build behavioral insights into our program management playbook:
  • Tailored risk communication to match stakeholder personas 
  • Nudges embedded in dashboard alerts (e.g., “Projects with similar delays had 30% budget overruns”) 
  • Training for city leaders on cognitive biases in capital decisions

It’s time we treat human behavior as a variable in our project controls—not a wild card outside of them.

Conclusion:
In the capital programs of the future, program managers will need more than technical know-how—they’ll need a behavioral lens. At FLAG, we’re already adjusting our focus.

Because the better we understand how decisions are made, the better we can guide them.

Front Line Advisory Group (FLAG) is a Program Management Consulting (PMC) firm focused on delivering bond-funded infrastructure projects on time and on budget through disciplined management and data-driven controls. Our mission extends beyond consultation – we empower our clients to realize the full potential of their investments, ensuring tax dollars are put to maximum use through astute Program Management Consulting. For more information or to commence your journey towards transformative bond management, reach out to us at Info FLAG

 

FLAG provides program management consulting services in Central Texas for municipal and school capital improvement bonds. FLAG is revolutionizing the construction industry and transforming client expectations by obsessing over the basics of budget oversight, schedule enforcement, compliance, vendor management, and stakeholder communication.

Join our weekly newsletter and receive a free copy of our new book!

JOIN NEWSLETTER

Understanding the Difference Between Critical Path and Driving Path in Project Schedules
Articles Capital Improvement Programs CIP CIP Budgetting Local

Understanding the Difference Between Critical Path and Driving Path in Project Schedules

Project management involves meticulous planning and scheduling to ensure the successful completion of a project within the allotted time frame....
Read More
Going Beyond Finance: The Need for Comprehensive Preapproval Processes for Bond Underwriters in High-Growth Municipalities and Independent School Districts
Articles Capital Improvement Programs CIP CIP Budgetting

Going Beyond Finance: The Need for Comprehensive Preapproval Processes for Bond Underwriters in High-Growth Municipalities and Independent School Districts

Public finance is an intricate and multi-faceted domain. Its complexity becomes pronounced when we consider the case of bond underwriters...
Read More
Texas: A 5 Year Examination of the Bonds Issued by ISDs and Local Governments
Articles Local

Texas: A 5 Year Examination of the Bonds Issued by ISDs and Local Governments

Over the course of the past five years (The period is November 2018 - May 2023), Texas has seen local...
Read More
How to incorporate AI into the Budget Process: A focus on Local Governments
Articles Local

How to incorporate AI into the Budget Process: A focus on Local Governments

Incorporating artificial intelligence (AI) into the budgeting process in local governments can greatly enhance efficiency, accuracy, and informed decision-making. This...
Read More
The Changing Landscape of School District Bond Propositions
Bonds Articles ISD School Bonds

The Changing Landscape of School District Bond Propositions

In the intricate labyrinth of legislation, changes to bond propositions have introduced new complexities for school districts, specifically in how...
Read More
Unfreezing the Status Quo
Articles Change Management

Unfreezing the Status Quo

Strategies for Implementing the Unfreeze Phase of Change Management Change is a constant in today's rapidly evolving business landscape. Organizations...
Read More
A Prerequisite for Progress: The importance of a Readiness Audit for Capital Improvement Bond Programs
Articles Capital Improvement Programs CIP

A Prerequisite for Progress: The importance of a Readiness Audit for Capital Improvement Bond Programs

As financial stewards of taxpayers' dollars, local government entities and educational institutions have a solemn duty towards citizens to ensure...
Read More
Understanding the Bonds: Voter-Approved vs. Certificates of Obligation
Articles CIP CIP Budgetting

Understanding the Bonds: Voter-Approved vs. Certificates of Obligation

The world of municipal financing can often be complex, but it is vital for taxpayers to understand the key differences...
Read More
Fostering Collaboration and Communication: The Role of a Rating System
Articles CIP CIP Budgetting

Fostering Collaboration and Communication: The Role of a Rating System

Efficient collaboration and communication are vital for the successful execution of projects. In the realm of project management, engineering, and...
Read More
The Right Tool For The Job: Tools For Effective Permitting Department Operations
Articles Development Services

The Right Tool For The Job: Tools For Effective Permitting Department Operations

Permitting departments execute complex operations requiring the management of thousands of permit applications, direct coordination with applicants, reviews from multiple...
Read More
1 14 15 16 17 18 23