Sunk Cost Bias

When you have lots of time, training, effort, and money into an idea, even if it’s not working, we tend to not want to give up on it. 

No matter how far down the wrong road you are, when you realize it, you have to turn around.

Me and my team have purchased or partnered with many companies and we are getting fantastic results.  One thing I see is that we can look at a situation and make a decision that the leader thus far has not made or has been too slow to make.  The reason is that they are emotionally attached to the previous decision or person.  Being outsiders, we are not. 

We call it like we see it without the sunk cost bias.  This is why getting help with your business or your life FROM THE RIGHT PEOPLE can be very powerful and save years of time.  

The funny thing is, I am subject to the same sunk cost bias as anyone else with my own business (less and less as I get smarter I hope).  When it was your idea in the first place, your hire, your friend…well, we just don’t want to admit we were wrong.

Sometimes we hold onto mediocrity because we think it will be worse if we cut the cord on the idea or person.  But that’s just fear.  We will never get the chance to really fix it if we don’t abandon the course to try a new one.

Where it is just not working for you?