March 2024

Recognize Failure and Avoid the Sunk Cost Fallacy:
There's no shame in shooting for the moon and missing

Failing fast is one of the most overworked business tropes. The underlying motivation is for companies to take big risks with immense potential payoffs. To fail fast, the company must put sensors in place to recognize early if the risky move is panning out and worth continuing.  In comparative mythology, the hero’s journey requires the protagonist to face and overcome adversity before they become worthy of winning. Biographers of business… Read More »Recognize Failure and Avoid the Sunk Cost Fallacy:
There's no shame in shooting for the moon and missing

Firefighters putting out an uncontrolled blaze in a building

Containing and Eliminating Business Fires:
Unexpected catastrophes kill companies

Startups are motivated by youthful energy, fueled by adrenaline, and supplemented by caffeine. The frenetic pace of a startup cannot be sustained forever.  If a company remains a startup too long, it will either burn through its cash or the original team will become too long in the tooth to muster the same enthusiasm that powered its early victories. Or both.  Companies that successfully navigate the transition from a startup… Read More »Containing and Eliminating Business Fires:
Unexpected catastrophes kill companies