Tag Archives: sunk cost

The dollar auction, or out of the frying pan into the fire

When a decision maker lacks in intellect, judgement or character, these weaknesses are likely (though not certain) to be reflected once his or her decision is put into effect, so it comes as no surprise that organizations with poor leadership are often unsuccessful in their endeavors. Sometimes, however, bad results are achieved even when the decisions that led to them were made by smart leaders in a rational manner and were based on an in-depth analysis of factual data. Either way, once the milk is spilled and it becomes clear that things have gone wrong, the right course of action is to acknowledge the reality, stop the venture, and carry on.

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