Are you stuck to your ideas? A recent article by Peter Galuszka on the new McKinsey Quarterly study explained that there are four biases that cause executives to stick to their original ideas even when they go bad.
1. The confirmation bias– failure to evaluate if new strategy is actually working
2. The sunk-cost fallacy– the thought that too much money has been put into an idea to dump it
3. The escalation of commitment– the thought that someday the idea will be profitable
4. The anchoring and adjustment bias– if the company does terminate a project, smart and accurate decisions must be made to find a new owner and at the right sales price. Be careful not to rely too heavily on one piece of information.
Always strive to see the big picture of your business. Treat every new idea as a theory, not a law.