Skip to content

Don’t Make Decisions Based on Sunk Costs

Here is another valuable Management Tip of the Day from Harvard Business Review. To sign up for a free subscription to any/all HBR newsletters, please click here.

It’s tempting to make choices that justify past choices. For example, you may refuse to end a suffering project because of the time and effort already put into it. But these sunk costs are in the past. Here are three ways to make decisions that focus on the future:

1. Get a second opinion. Listen carefully to people who were uninvolved with earlier decisions and unlikely to be as committed to them.

2. Be easy on yourself. Even the best managers make mistakes and it’s okay to reverse a previous decision.

3. Don’t encourage a fear of failure. When evaluating decisions, look at the quality of the process, not just the outcomes.

Today’s Management Tip was adapted from Harvard Business Review on Making Smart Decisions.

To learn more the book, please click here.

I also suggest checking out  the new book, Management Tips from Harvard Business Review, based on HBR’s Management Tips of the Day such as this one.

 


Posted in

Leave a Comment





This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll To Top
%d bloggers like this: