Gaining Career Clarity #4
Stick it out? Not always the best advice.
There's something called the "sunk cost fallacy," and it goes like this: I've put so much into this (direction, investment, relationship, job, etc.) that I can't back out now. I have to push forward and see it through.
I'm all for perseverance and ongoing effort, but when it comes to your career, you need to make decisions based on the future (the potential for growth and success), not the past (what you've already invested).
If you own a field and want to gain a harvest, you work the soil. You clear obstructions, you plant, you water, you weed, you cultivate. And if it's a good field that has potential, over time, you'll have fruitful results.
But if it's a bad field, no amount of effort will lead to success. Better to cut your losses as soon as possible and move on to a better place.
We want to defend our prior decisions. We don't want to be seen as having been wrong, in our own eyes or the eyes of others. This is natural human behavior, which is why it is so common. And that is why so many people stay in unhealthy or unfruitful arrangements.
Kodak was a hugely influential company, but they wouldn’t loosen their grip on their main cash cow - film - until it was too late. Film was awesomely popular and profitable until it was swamped by digital imaging. In a few short years, it was game over for Kodak.
In recent years, many people have taken a bath on cryptocurrency investments and NFTs. For a while, it was the high-flying investment du jour. Then (as with all bubbles), it tumbled. A few made the big bucks by getting out at the peak. But many others did not want to face the fact that this was a thoroughly unpredictable investment with questionable fundamentals.
“But I’ve got so much sunk into it - it's got to turn around if only I just hold on!” If only…
When I started out as a consultant, I sank an enormous amount of time developing a business model that I thought had very high potential. It never fully panned out - it was a half-fruitful field. So I moved into an adjacent field (workshops) that was much more productive.
I had to pivot, evolve, and find an offering that was better. A bit of humble pie? Yes. Way better cash flow and growth potential? Worth the change.
Entrepreneurs take note - creative evolution is ongoing, not one-time.
When we're at the crossroads of decision-making about our career, particularly the choice to abandon one direction in favor of a new one, we sometimes have to face the fact that the current company, or role, or situation, just doesn't have potential for us. That's when we take our lumps, let the past be the past, and look to the future.
Sunk costs should not determine your decisions. Let future potential be your north star.
Prior posts:
Steve Woodruff is known as the King of Clarity.
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