Global Leadership
October 25, 2021
Sunk cost bias occurs when we have the tendency to continue investing time, effort, or money, because of what it has already cost us.
In the past, I have had numerous situations where it was difficult to terminate a project because of the emotional attachment to it. Although logically it made sense to terminate the project, I had an underlying optimism that it would all work out.
One thing I have learnt as I have gotten older is how to do this more easily. I now try to avoid getting to that point in the first place but if so, I engage in a candid conversation with the client, and if unresolved, then extricate myself with minimal fuss.
What signals do you use to identify sunken cost bias?
