Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Management article
-
Reference no. U0205D
Authors: Jimmy Guterman
Published by: Harvard Business Publishing
Published in: "Harvard Management Update", 2002

Abstract

Have you ever chased after the sunk cost of an investment that was no longer recoverable? Often, people''s ability to answer yes or no to this question depends on whether the investment was one of time or money. Because people tend to be more accustomed to accounting for money, they are more likely to give prior monetary investments undue importance in deciding whether to kill a failing project. To ensure that you don''t escalate your company''s commitment to a product, person, or strategy beyond a reasonable point, read the tried-and-true tips in this article to help you identify a sunk-cost trap before you pour too much money or time down a rat hole.

About

Abstract

Have you ever chased after the sunk cost of an investment that was no longer recoverable? Often, people''s ability to answer yes or no to this question depends on whether the investment was one of time or money. Because people tend to be more accustomed to accounting for money, they are more likely to give prior monetary investments undue importance in deciding whether to kill a failing project. To ensure that you don''t escalate your company''s commitment to a product, person, or strategy beyond a reasonable point, read the tried-and-true tips in this article to help you identify a sunk-cost trap before you pour too much money or time down a rat hole.

Related