How do we avoid this? Let’s try these:
- Set aside sunk costs – anything that would muddy your thinking about choices at hand. E.g. keep the original decision makers away from the group/team reviewing this past decision;
- Have a fresh mind by listening carefully to people who were NOT involved with the earlier decisions;
- Examine why admitting to an earlier mistake distresses you, your boss or the CEO;
- Be sensitive about the influence of sunk-cost biases;
- Cultivate a fearless culture for employees that are examining the past decisions and empower them appropriately.