The Psychology Behind the Sunk-Cost Fallacy in Project Management

Posted March 24, 2022 | Leadership |
green ball squished into a background of tiny aqua foam pebbles
Leaders need to avoid falling victim to the sunk-cost fallacy. Measure your organization’s perceptions about its emotional investment as well as whatever reputation, political capital, money, time, or any other resource it has committed to the project thus far. The most important step to freeing yourself from making poor decisions based on sunk costs is to recognize the logical fallacy. Even simply being aware of it will help you make more rational decisions in the future.
About The Author
Scott Stribrny
Scott Stribrny is a Cutter Expert and a leading figure in the world of process improvement. With over 30 years’ diverse experience, Mr. Stribrny is the cofounder, President, and Managing Director of Group Atlantic, Inc. His current interests include change management, new paradigms for organizational design, and technology-based competitive strategy. Mr. Stribrny advises companies on how to adapt modern software development techniques to fit… Read More
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