Although canceling a project or exiting a business may often be regarded as a sign of failure, such moves are really a perfectly normal part of the creative-destruction process. Companies need to realize that in this way they can free up their resources and improve their ability to embrace new market opportunities.
By neutralizing the psychological biases that make it harder for executives to evaluate struggling ventures objectively, companies have a considerably better shot at making investments in ventures with strong growth prospects. The unacceptable alternative is to gamble away the company’s resources on endeavors that are likely to fail in the long run no matter how much is invested in them.
Content: Article
Authors: Dan P. Lovallo, John T. Horn, S. Patrick Viguerie
Source: McKinsey Quarterly
Subjects: Management, Strategy
Authors: Dan P. Lovallo, John T. Horn, S. Patrick Viguerie
Source: McKinsey Quarterly
Subjects: Management, Strategy
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