Projects
The term white elephant is often applied to construction projects that exceed initial budgets by a great margin but are too expensive not to finish. The term has also been applied to technology projects such as new aircraft commissioned by defense departments that vastly exceeded development budgets only to produce aircraft that have particularly high maintenance costs. In many cases, white elephant projects are allowed to continue due to sunk costs. In other cases, they are allowed to continue because it's perceived as politically dangerous to admit failure on an expensive investment. There is often a fear that seeking a better solution will be equally costly and painful.| Overview: White Elephant | ||
Type | ||
Definition | An asset that is expensive to maintain and difficult to retire. | |
Examples | The Sagrada Familia church in Barcelona began construction in 1882 and completion isn't expected until 2026. | |
Related Techniques | ||
