A major cause of company failure is holding on to a strategy that no longer works. To avoid “escalation of commitment”, learn to let go.
Many things can contribute to the failure of a company. But, in nearly every case of the demise of a former leader in its industry, a major factor is escalation of commitment: holding on too long to a strategy that was once successful. Writing in Harvard Business Review, Freek Vermeulen and Niro Sivanathan look at the causes of escalation, and ways to avoid it.
HOW ESCALATION HAPPENS