One risk that IT and business leaders have a hard time with intellectually is rationalizing sunk costs for a project that in a recession they never would have started in the first place. “We’ve spent all this money — we can’t just throw it away.”
Oh, yes you can!
You gotta throw it away before the project sinks you and everyone else — even if after the recession it means spending more money, re-engaging the consultants at higher rates, and hiring new people all over again.
There may be ways to minimize the costs of resurrecting a project later — mothballing as it were — but it costs money to mothball. In an extreme downturn you may just have to let that important project rot at the pier.
Sunk costs. Don’t lose sleep over ’em.
Read Complimentary Relevant Research
Predicts 2017: Artificial Intelligence
Artificial intelligence is changing the way in which organizations innovate and communicate their processes, products and services. Practical...
View Relevant Webinars
The Mobile Scenario: Taking Mobility to the Next Level
The definition of "mobile" in the post-app era will involve new interactions such as bots and conversations, new devices such as wearables...
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.