Certified Agile Leadership Practice Exam 2026 - Free Agile Leadership Practice Questions and Study Guide

The planning fallacy is characterized by the tendency to underestimate the time, costs, and risks of future actions while overestimating the benefits. This cognitive bias leads individuals and teams to make overly optimistic predictions about how long tasks will take and what resources will be required.

Overestimation of capacities aligns directly with the planning fallacy, as it reflects the assumption that tasks will take less time or effort than they actually do. This often results in projects running late or exceeding budget, as individuals fail to account for potential setbacks or challenges.

The other options depict aspects that are not inherent to the planning fallacy. For example, making accurate predictions of time contradicts the very definition of the planning fallacy. Consistent planning processes do not inherently lead to inaccuracies in time estimation, as effective processes can help mitigate this bias. Overconfidence in management may contribute to the planning fallacy, but it does not define the key feature of this cognitive bias, which specifically revolves around unrealistic estimations concerning time and resources.