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The Sunk-Cost Bias
... is a reluctance to give up on the past spendings and investments made on projects or products that are no longer providing any return.
The managers are usually unable to make strong decisions and keep adding costs to failed (or about to fail) projects.
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The Competency Trap: Lessons
- Companies which have the potential for falling in the competency trap may require an overhaul.
- Old-school managers who are blinded from future innovations need to be updated.
- Employees and managers should work within the research and development departments for some time t...
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709 reads
Failing To See The Future
- AT&T invented the telephone and began working on mobile communication as early as the 1940s, yet it was Motorola which eventually created the first hand-held cell phones for the mass market.
- Kotak, the film company, had a digital camera sensor ready in the 80s, yet chose to continu...
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653 reads
The Problem Of Success
Successful organizations start having rigid corporate cultures, which crumble when the outside world evolves, which is always inevitable.
The rules and assumptions that companies operate on, become embedded, making the employees blinded from any potential future innovations.
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920 reads
The Competency Trap
The company having the original PC technology back in the 70s was Xerox. This was a time when their photocopiers were a worldwide hit, and even their brand name ‘Xerox’ was used as a verb. They had a research centre to develop new technologies, where they invented the PC (similar to what we see e...
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1.01K reads
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Love and the "sunk cost bias"
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The Sunk Cost Fallacy In Business
When running a company, many entrepreneurs fail to quit, change direction or pivot their business model, unable to admit that what they were doing isn’t working, or that they were plain wrong in their decisions.
The Sunk Cost Fallacy is the primary reason for this gross error in ju...
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