Patterns / 6. Fight, Fold, or Leave
Pattern 6.2
Ignore the Sunk Cost
Judge whether to keep going on what the next round of money or effort will return, not on what has already been spent.
In This Context
Money already spent on a project is not a reason to keep spending on it, but it often feels like one. ch18_plan points to the platform at Collaboron in Chapter 6, and to Jan’s own platform before Part IV, as projects where this applies. The same trap applies to the person driving the change. Years spent trying to change an organization are a sunk cost too, and the longer you’ve been at it, the harder it is to admit that the next year is unlikely to be different.
Therefore
When deciding whether to continue, set aside what has been spent and ask what the next stage of spending, or the next year of your own effort, is likely to return.
Consequently
- Projects and personal campaigns can be stopped before they absorb more.
- Stopping can look like a waste of what went before, and the people who approved that spending may resist it.
Seen In
ch18_plan, “Sunk Costs”.