Coach Vince Lombardi exhorted his players, telling them, "Winners never quit and quitters never win." Following this advice in a practice can lead to costly problems because sometimes quitting a project is the best option. Not quitting could result in throwing good money after bad. Practice leaders need to be aware of this possibility and use their leadership skills to avoid this dysfunction or lead their team to the right change of course.
The sunk cost fallacy is the main source of this dysfunction. The sunk cost fallacy is the belief that a project should be continued because of past resources expended on the project.
Smith, David (2021) Use leadership skills that apply to behavioral economics to avoid the sunk cost fallacy. The Journal of Financial Planning 34(5) p70-74
To unsubscribe, reply to this email with "Unsubscribe" in the subject or at the top of the body.
When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.