This relatively short paper can be viewed as a tutorial on the application of agency theory to information systems project management.

There is an inherent conflict between management (the principal for the project) and developers (the agents doing the work to complete the project). Agency theory concepts help explain some of the major problems in the management of information system projects. This paper explains these issues and the application of principles from agency theory in this context.

Mahaney and Lederer provide research results that support the principles they explain. Although the research responses were obtained from a small number of development managers, they are helpful in illustrating the issues and suggested solutions.