Pay Pros - Blog
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Posted on Mar 14th 2019
Are You Actively Managing Sunk Costs?
It's likely that your business has been saddled with sunk costs in the past.
Software that should have been retired.
Projects that should have been abandoned.
Employees that should have been terminated.
Letting go of money invested in the wrong things and the wrong people can be difficult. So difficult that rather than accepting the loss, we justify reasons for pouring more resources on dying embers.
It's ironic that in our planning, budgeting, and hiring, we often fail to establish contingencies for when things don't go according to plan.
We struggle to hold poor performing employees accountable.
We put off important transitions in systems, processes, and technologies.
These situations are uncomfortable, so naturally, they're tempting to avoid.
How much more are you losing simply because there aren't clear measurements and processes for identifying and eliminating sunk costs earlier on?