Make Better Innovation Decisions: The Link Between Sunk Costs & Meditation

Make Better Innovation Decisions: The Link Between Sunk Costs & Meditation

Innovation requires effective project management and sound investments. Sunk-cost bias, the tendency to cling to a project that is no longer feasible, can hinder innovation strategy by turning projects into “zombie projects.” Although traditional economic theory suggests that sunk costs should not influence decision making, behavioral economics demonstrates that humans are prone to framing effects and loss aversion, which can lead people to behave irrationally. Daily reflection and mindfulness meditation can help reduce the sunk-cost bias issue. Mindfulness trains individuals to remain in the moment and reduces dependence on memories of prior investments or anticipatory regret in the future.

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Reinvention: Accelerating Results in the Age of Disruption

Leaders can prepare their organizations to face disruption and radical change with a simple formula, common principles, and set of tools, say Shane Cragun and Kate Sweetman in their book Reinvention: Accelerating Results in the Age of Disruption.

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Innovation and social media are permeating business and government, but their potential success hinges on the lack of experience in these areas.

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Three Phases of Embedding Innovation

Fear of failure is the biggest impediment to innovation. Organizations need to create a culture conducive to growth and experimentation to unleash their innovation potential.

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