  The cost-benefit analysis formulates the holy trinity of objectives of
project management - cost, schedule, and benefits. As our previous research has
shown, ICT projects deviate from their initial cost estimate by more than 10%
in 8 out of 10 cases. Academic research has argued that Optimism Bias and Black
Swan Blindness cause forecasts to fall short of actual costs. Firstly, optimism
bias has been linked to effects of deception and delusion, which is caused by
taking the inside-view and ignoring distributional information when making
decisions. Secondly, we argued before that Black Swan Blindness makes
decision-makers ignore outlying events even if decisions and judgements are
based on the outside view. Using a sample of 1,471 ICT projects with a total
value of USD 241 billion - we answer the question: Can we show the different
effects of Normal Performance, Delusion, and Deception? We calculated the
cumulative distribution function (CDF) of (actual-forecast)/forecast. Our
results show that the CDF changes at two tipping points - the first one
transforms an exponential function into a Gaussian bell curve. The second
tipping point transforms the bell curve into a power law distribution with the
power of 2. We argue that these results show that project performance up to the
first tipping point is politically motivated and project performance above the
second tipping point indicates that project managers and decision-makers are
fooled by random outliers, because they are blind to thick tails. We then show
that Black Swan ICT projects are a significant source of uncertainty to an
organisation and that management needs to be aware of.
