Staying For The Wrong Reason

Let's define sunk costs as time or money spent that cannot be recouped. Using this definition, that time and money is gone like summer in Minnesota. Despite knowing this, I listen to many people that live their lives and practice leadership based on desperately trying to regain sunk costs. And they don't even recognize it.

The most effective leaders are ruthless in excluding sunk costs from their decision making process. How much of the unchangeable past are you including in your daily practice of leadership? Are you persisting in something not because you love it or believe in it, but because you have spent the last 10 years working on it? It could be a hobby, project, employee, product, job, or even an entire business.

Have you come to the conclusion that a change of direction, a restart, a new approach is needed that will invalidate all of your hard past work and money? If so - who cares? You can't get it back anyways. Let me repeat, you cannot get it back.

But what will people think you ask? If you go and quit something. Quitting is not bad in regards to leadership and business if the new thing will have a positive return on investment and as long as you are not quitting out of fear or violating a committment. Why should you persist in a negative return activity because of what people will think. Forget them. They'll be clapping for you when you come out on top anyways.

Go forth and conquer without the weight of sunk costs dragging you down. I want you to win. And you will.

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