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.
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