Sunken Cost Fallacy

Discussions about how much ‘stuff’ we keep for the sake of it, both physically and mentally started me reflecting and researching why people do like to hold onto things.

I came across something called the ‘sunken cost fallacy’ which is about investments that justify further expenditure. They don’t need to be monetary.  It could be time, energy or emotion. The thing is when we’ve invested heavily, we allow our personal attachments to cloud our judgement which means our decision making is driven by emotion rather than logic.

Think of that expensive piece of clothing in your wardrobe. Worn only once but it remains because of that price tag. Or the business idea, in which you’ve invested money and people but you’ve missed the market. Instead of adapting it or moving on, you keep going back to the same idea in the hope you missed something?

I’m hearing for many, the pandemic has allowed some decluttering. It has given you the opportunity to re-evaluate what is important and, no matter what your sunken cost is, to move. But what if you’re being driven by emotion rather than logic? What can you do to change your perspective? If it was a friend in the same position what questions might you be asking them?

 

Let GARLIC be the superfood in your organisation

In December we provided you with an overview of how G.A.R.L.I.C. could help you create an environment at work for people to comfortable in raising their head above the parapet and ask for help.

If you click on this link or on the picture below, you will see that we have an extended version of this that will help you take each of the ingredients and blend them together in a way that provides you and your organisation with the best results.

Do you keep your promises?

What do we know about promises?  My belief has always been that if you make a promise to someone, you are going to follow through and make it happen.  It’s that assurance that you will do something.  I don’t know about you, but if there’s ever a time that I can’t keep a promise, I feel as if I’m letting the other person down.  All well and good when you’re making a promise to someone else, but what happens when that promise is to yourself?  Do you feel the same way?

The reason that I’m asking the question is that through my coaching practice and being more observant of myself, I have become extremely conscious about where we place ourselves on our own list of priorities.  Having something in the calendar that you’ve earmarked to do for yourself can be so easily disregarded when someone else asks you to do something.  And when we continually bump our own work for other’s we start to devalue the time we set aside for ourselves and allow it to become a habit.  Not only that, Continue reading