Sunk Costs: MilSuccessNet guest writer, Cindy Dachuk weighs in on what it means to readers in the midst of Military to Civilian transition. And, we revisit the sunk costs post of US Army Light Infantry veteran, Jesse Hughes as he experienced it during his MBA process.
Sunk Costs in a team scenario was the topic of one of our Go To ‘business guys’ on the MilSuccessNet guest writer roster, Jesse Hughes.
The reality of sunk costs that Jesse introduced, goes a step deeper with Cindy’s post. It speaks to the every day decision-making process. It may also touch on the analysis our readers experience as they shift from military to civilian work places and community situations.
During his MBA, Jesse bridged interests in his civilian academic study group using both military and business savvy. In his current work life now, he bridges his company’s interests through strategic matching of its specialists with clients’ needs for solutions in the marketplace.
We are wise to do what he does, pause and ask if we can afford to sink into one path without review, or being open to revision and refinement?
Cindy Dachuk answers this question in today’s Wow- Words on Wednesdays. She is a Leadership Breakthrough Expert and founder of the Titan Training Group.
A friend of MilitarySuccessNetwork, we met her at the same time Team MilSuccessNet’s members first met each other- all at a communications boot camp led by Kevin Hogan.
We were all there to learn, to adapt and to advance.. and we do so now again, with the reprint of Cindy Dachuk’s blog on sunk costs, from her post this week and in her own words…
True Cost of… Sunk Costs
Organisms that placed more urgency on avoiding threats than they did on maximizing opportunities were more likely to pass on their genes. So over time, the prospect of losses has become a more powerful motivator on your behavior than the promise of gains.
I was thinking about this concept last night as I recalled a conversation that took place during a Career Planning session I was facilitating that day.
In essence, one of the participants commented that they felt ‘trapped’ in their existing career because they had spent the past number of years in their current role and, despite the fact they didn’t think this was their ‘true’ dream career, couldn’t just walk away and ‘start over’.
This is the sunk-cost fallacy at work.
This individual would like to consider switching their career but felt that they already had too much invested in their current stream to change. Rather than shifting to something they would likely enjoy more, they didn’t want to ‘lose’ the investment they had already made.
The biggest impact to us of the fallacy is, of course, that it prevents us from making choices that would serve us best in the future, rather than those negating the feeling of losses from past actions.
The challenge for us is that this fallacy is operating upon us unconsciously, we don’t even know that it is creating false logic streams in our decision-making. Consider… have you ever gone to the movies only to realize, very early on, that the movie is terrible? And yet, how often do people get up and leave?
Most stay and watch the movie, complaining bitterly afterward about the wasted money and time. However, leaving early would have meant they could have mitigated their losses by not investing any more of their time. Because the ticket was already purchased though, we remain to ‘get our money’s worth’.
Staying cost us more, but we only fixate on the cost of walking away.
What have you perhaps been holding onto too long simply because of the sunk-costs you have incurred?
- a relationship that is no longer serving you
- a career choice that no longer ‘fits’
- a business idea that doesn’t work
- a process or system that doesn’t do what it should
- an advisor or mentor that has run their course
- an investment that is never going to turn around