Meditations On Leadership
These are my thoughts on leadership related topics and ideas. It is meant to be a sort of journal for me and if you find it useful than I am happy to have helped.
"If its not working it's arrogant to insist on it." -Seth Godin Sunk Cost Bias or Sunk Cost Fallacy or the Concorde Fallacy. They are all the same thing and they are talking about the tendency that people have to continue investing in something that is failing because they have already spent so much on it. The most common example is Concorde Airlines which the British and French governments invested heavily in and which consistently lost millions of dollars every year. Another example could be when a company spends a lot of money on a commercial spot and it doesn't do very well but because of how much was originally invested in it the powers that be decide to run it rather than reshoot it because they want to get their money's worth out of it. The Sunk Cost Bias manifests itself in people's personal life as well as purchases that people make and then regret but rather than chalking it up to a loss they push forward in their predetermined path and are miserable about their choice. For example, going to a movie and part way through realizing that it is a waste of time but rather than leave to do something else they sit through the rest of the movie and then complain about how terrible it was and what a waste of time it was. The money is spent and you can't get it back, don't waste your time watching the movie, go do something else. Otherwise you waste your money and your time. Leadership LessonDon't throw good money after bad. Don't throw good time after time lost. If something is failing don't be so arrogant to insist that your people continue in it. It isn't working so move on and find something that works.
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AuthorJ. LaVarr Roberts Archives
April 2021
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