{"id":2493,"date":"2026-02-23T16:21:49","date_gmt":"2026-02-23T12:21:49","guid":{"rendered":"https:\/\/www.sureshdinakaran.com\/blog\/?p=2493"},"modified":"2026-02-23T16:21:49","modified_gmt":"2026-02-23T12:21:49","slug":"sunk-costs-when-yesterday-hijacks-tomorrow","status":"publish","type":"post","link":"https:\/\/www.sureshdinakaran.com\/blog\/2026\/02\/23\/sunk-costs-when-yesterday-hijacks-tomorrow\/","title":{"rendered":"Sunk Costs: When Yesterday Hijacks Tomorrow"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>What if the smartest move on the table&#8230; is the one that looks like surrender?<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>Sit with that. Uncomfortably. Good.<\/p>\n<p>&nbsp;<\/p>\n<p>There&#8217;s a Japanese soldier named <a href=\"https:\/\/en.wikipedia.org\/wiki\/Hiroo_Onoda#:~:text=a%20Japanese%20soldier%20who%20served,Army%20during%20World%20War%20II.\"><span style=\"color: #ff0000;\"><em>Hiroo Onoda<\/em><\/span><\/a>\u00a0who kept fighting in the Philippine jungle until 1974. World War II had ended in 1945. Twenty-nine years of ambushes, survival, and fierce loyalty \u2014 to a war that nobody else remembered fighting. When his former commanding officer flew in personally to relieve him of duty, Onoda wept.<\/p>\n<p>&nbsp;<\/p>\n<p>He wasn&#8217;t crazy. He was committed. And that&#8217;s the terrifying part. Because commitment, without the courage to audit reality, is just a more dignified word for\u00a0<em><span style=\"color: #ff0000;\">stubbornness wearing a uniform<\/span>.<\/em><\/p>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"color: #ff0000;\"><em>The Sunk Cost Fallacy<\/em><\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Yes, economists have a name for this affliction. <strong><span style=\"color: #ff0000;\"><em>Sunk Cost Fallacy<\/em><\/span>.<\/strong>\u00a0The deeply irrational, deeply human tendency to keep pouring resources \u2014 time, money, emotion, identity \u2014 into something\u00a0<span style=\"color: #ff0000;\"><em>because<\/em><\/span>\u00a0of what you&#8217;ve already invested, not because of what it can actually deliver.<\/p>\n<p>&nbsp;<\/p>\n<p>The money is gone. The time is gone. The decision that seemed logical then is costing you now. And yet.<span style=\"color: #ff0000;\"><em>\u00a0And yet. <\/em><\/span>You stay. Because leaving feels like losing. Because someone might call it quitting.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><strong><em>The Most Expensive Line Item in Your Life Is Not on Your Balance Sheet<\/em><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>There is a ghost that attends every board meeting.<\/p>\n<p>&nbsp;<\/p>\n<p>It does not speak.<br \/>\nIt does not vote.<br \/>\nBut it whispers.<\/p>\n<p>&nbsp;<\/p>\n<p>\u201c<span style=\"color: #ff0000;\"><em>We\u2019ve already invested so much.<\/em><\/span>\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>That whisper has bankrupted empires, prolonged wars, sunk companies and, more quietly, imprisoned brilliant people in unlived lives.<\/p>\n<p>&nbsp;<\/p>\n<p>As stated earlier, it\u2019s called the <strong><span style=\"color: #ff0000;\"><em>Sunk Cost Fallacy<\/em><\/span><\/strong>. And it is the most polite saboteur in business. And so too in life.<\/p>\n<p>&nbsp;<\/p>\n<p>We stay in projects because we\u2019ve spent too much to stop.<br \/>\nWe stay in careers because we\u2019ve studied too long to pivot.<br \/>\nWe stay in partnerships because we\u2019ve endured too much to walk away.<\/p>\n<p>&nbsp;<\/p>\n<p>Money gone. Time gone. Energy gone.<br \/>\nAnd yet we insist on throwing tomorrow into yesterday\u2019s furnace.<\/p>\n<p>&nbsp;<\/p>\n<p>Let me take you somewhere uncomfortable.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"color: #ff0000;\"><em>Here&#8217;s some air-tight lessons from\u00a0 Concorde, Kingfisher and Swiss Air\u00a0<\/em><\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>Pie in the sky?<\/em><\/span> We have heard that. We have a few here.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>Concorde<\/em><\/span> undoubtedly was an engineering marvel. Britain and France knew by the mid-1970s that Concorde was commercially unviable. Knew it. Had the numbers. Had the reports. They flew it until 2003. Why? Because they&#8217;d already spent the equivalent of billions. Because stopping felt like admitting the whole glorious, expensive dream was a mistake. Prestige was expensive. Pride was more expensive. The aircraft was a marvel. The economics were not.<\/p>\n<p>&nbsp;<\/p>\n<p>And the admission \u2014 delayed by decades \u2014 cost them far more than the original error ever would have.<\/p>\n<p>&nbsp;<\/p>\n<p>Closer home, <span style=\"color: #ff0000;\"><em>Vijay Mallya<\/em><\/span> didn&#8217;t sink because he dreamed big with <span style=\"color: #ff0000;\"><em>Kingfisher Airlines.<\/em><\/span> He sank because he kept funding yesterday&#8217;s dream with tomorrow&#8217;s money \u2014 long after every signal said <em>this story ends badly.<\/em> The sunk cost of a lifestyle, a legacy, an identity he couldn&#8217;t separate from the airline. The plane went down. He kept boarding.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em><strong>Quitting is under-rated<\/strong>.<\/em><\/span> Here comes one more.<\/p>\n<p>&nbsp;<\/p>\n<p>Globally, we marvel at the &#8220;<a href=\"https:\/\/knowledge.insead.edu\/leadership-organisations\/icarus-syndrome-execs-who-fly-too-close-sun\"><span style=\"color: #ff0000;\"><em>Icarus Syndrome<\/em><\/span><\/a>&#8221; in tech. In 2001, <span style=\"color: #ff0000;\"><em>Swissair<\/em><\/span> was the pride of Europe. When they realized their &#8220;<span style=\"color: #ff0000;\"><em>Hunter Strategy<\/em><\/span>&#8221; of buying up smaller airlines was hemorrhaging cash, did they pivot? No. They poured billions into &#8220;<span style=\"color: #ff0000;\"><em>Project Hunter<\/em><\/span>&#8221; to save face. They flew straight into the ground, taking 26,000 jobs with them. That wasn\u2019t a business failure; that was a refusal to admit that the fuel for the journey was already burned.<\/p>\n<p>&nbsp;<\/p>\n<p><em><strong><span style=\"color: #ff0000;\">Not a rosy picture alas<\/span><\/strong><\/em><\/p>\n<p>Global giants are not immune. When <span style=\"color: #ff0000;\"><em>Kodak<\/em><\/span> invented the digital camera in 1975, it shelved its own invention. Why? Because film was too profitable to disrupt. Billions in infrastructure became invisible handcuffs. <span style=\"color: #ff0000;\"><em>The future was postponed to protect the past.<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>History does not punish failure. It punishes attachment.<\/p>\n<p>&nbsp;<\/p>\n<p>But this is not only about corporations with glossy annual reports.<\/p>\n<p>&nbsp;<\/p>\n<p>It is about you.<\/p>\n<p>&nbsp;<\/p>\n<p>The MBA who secretly wants to write.<br \/>\nThe founder who knows the product has no pulse but keeps it on life support because investors are watching.<br \/>\nThe executive who dreads Monday but clings to the designation because ten years is \u201ctoo much to waste.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>You don\u2019t get tomorrow over again. <span style=\"color: #ff0000;\"><em>Our tomorrows are finite inventory<\/em><\/span>.<\/p>\n<p>&nbsp;<\/p>\n<p>Time is not refundable.<br \/>\nOnly re-allocatable.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>One of the most under-celebrated strategic skills is quitting<\/em><\/span>. <span style=\"color: #ff0000;\"><em>Not impulsive quitting. Not petulant quitting.<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>Strategic quitting.<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>The Japanese have a word, \u201c<span style=\"color: #ff0000;\"><em>kaizen<\/em><\/span>,\u201d for continuous improvement. <span style=\"color: #ff0000;\"><em>We need one for continuous subtraction<\/em><\/span>. For the discipline of walking away from what no longer deserves your future.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em><strong>Consider this<\/strong><\/em><\/span><\/p>\n<p>In the early 2000s, <span style=\"color: #ff0000;\"><em>IBM<\/em><\/span> exited the personal computer business, selling it to <span style=\"color: #ff0000;\"><em>Lenovo<\/em><\/span>. For decades, PCs defined IBM\u2019s identity. Yet it <span style=\"color: #ff0000;\"><em>chose relevance over nostalgia<\/em><\/span>. It chose the future over familiarity. Today IBM is a different beast altogether.<\/p>\n<p>&nbsp;<\/p>\n<p>That is not abandonment.<br \/>\nThat is evolution.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><strong><em>The sunk cost fallacy thrives on three seductions<\/em><\/strong><\/span><\/p>\n<ol>\n<li><strong>Ego<\/strong>\u00a0\u2013 \u201cIf I quit, I admit I was wrong.\u201d<\/li>\n<li><strong>Fear<\/strong>\u00a0\u2013 \u201cWhat if walking away proves I failed?\u201d<\/li>\n<li><strong>Optics<\/strong>\u00a0\u2013 \u201cWhat will people say?\u201d<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>But here is the deeper truth.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>Quitting is not about escaping effort.<\/em><\/span><br \/>\n<span style=\"color: #ff0000;\"><em>It is about protecting potential.<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>The chance to build something you are proud of, with a team you are eager to work with, is not guaranteed. It is a privilege. And ignoring that privilege because you are loyal to yesterday\u2019s decisions is an act of self-sabotage.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>We romanticise grit. We worship perseverance. We lionise staying power.<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>Yet sometimes the bravest sentence in business is:<br \/>\n\u201cThis no longer deserves my life.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>Imagine if we evaluated projects not by what we have invested, but by what they still promise.<\/p>\n<p>&nbsp;<\/p>\n<p>If this opportunity came to you today, fresh and unburdened, would you choose it again?<\/p>\n<p>&nbsp;<\/p>\n<p>If the answer is no, your strategy is nostalgia.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><strong><em>In closing, let me offer three provocations<\/em><\/strong><\/span><\/p>\n<p><strong>Audit your attachments.<\/strong>\u00a0List the top five commitments in your professional life. Ask: If I were starting today, would I sign up for this again?<\/p>\n<p><strong>Reward intelligent exits.<\/strong>\u00a0In your organisation, publicly recognise smart shutdowns, not just heroic endurance.<\/p>\n<p><strong>Reclaim your calendar.<\/strong>\u00a0Your schedule is the clearest evidence of what you refuse to quit.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #ff0000;\"><em>Tomorrow is not an extension of yesterday. It is a negotiation.<\/em><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>And sunk costs do not deserve voting rights in that negotiation.<\/p>\n<p>&nbsp;<\/p>\n<p>You cannot retrieve the money spent.<br \/>\nYou cannot reclaim the years invested.<br \/>\nBut you can decide what gets your next decade.<\/p>\n<p>&nbsp;<\/p>\n<p>The world does not run out of opportunity.<br \/>\nIt runs out of courage.<\/p>\n<p>&nbsp;<\/p>\n<p>And sometimes courage looks like this:<\/p>\n<p>&nbsp;<\/p>\n<p>Closing the door gently.<br \/>\nThanking the lesson.<br \/>\nWalking forward lighter.<\/p>\n<p>&nbsp;<\/p>\n<p><strong><span style=\"color: #ff0000;\"><em>Quitting is underrated. You bet! . <\/em><\/span><\/strong>Don\u2019t let nostalgia run your P&amp;L.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #000000; font-family: trebuchet ms, sans-serif;\"><em><strong>PS:<\/strong> On a completely different note,\u00a0<\/em>I am delighted to share that<em>\u00a0<\/em>my other blog\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/www.linkedin.com\/build-relation\/newsletter-follow?entityUrn=7331490759587627008\"><em><strong>SOHB(State Of The Heart Branding) Story<\/strong>\u00a0<\/em><\/a><\/span>is now a <strong><em>Podcast<\/em><\/strong> as well<em>.\u00a0<\/em>You can access it on these links below:<\/span><\/p>\n<p><span style=\"color: #000000; font-family: trebuchet ms, sans-serif;\"><em><strong>YouTube:<\/strong>\u00a0<\/em><a href=\"https:\/\/www.youtube.com\/@SOHBStory\/videos\" target=\"_blank\" rel=\"noopener noreferrer\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.youtube.com\/@SOHBStory\/videos&amp;source=gmail&amp;ust=1771935437033000&amp;usg=AOvVaw2ZUxzkS6Ht4bslSzKOKZXO\"><em>https:\/\/www.youtube.com\/@<wbr \/>SOHBStory\/videos<\/em><\/a><\/span><\/p>\n<p><span style=\"color: #000000; font-family: trebuchet ms, sans-serif;\"><strong><em>Spotify<\/em>:<\/strong>\u00a0<a href=\"https:\/\/open.spotify.com\/episode\/3POSy0dixh5r7TjOFgfC4e\" target=\"_blank\" rel=\"noopener noreferrer\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/open.spotify.com\/episode\/3POSy0dixh5r7TjOFgfC4e&amp;source=gmail&amp;ust=1771935437033000&amp;usg=AOvVaw3IVgrMXQjJI12OpuFrNY_U\">https:\/\/open.spotify.com\/<wbr \/>episode\/3POSy0dixh5r7TjOFgfC4e<\/a><\/span><\/p>\n<p><span style=\"color: #000000; font-family: trebuchet ms, sans-serif;\"><strong><em>Instagram<\/em>:<\/strong>\u00a0<a href=\"https:\/\/www.instagram.com\/reel\/DT8D70FDWms\/?igsh=MWc4enNzaXBhaHQzOA==\" target=\"_blank\" rel=\"noopener noreferrer\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/www.instagram.com\/reel\/DT8D70FDWms\/?igsh%3DMWc4enNzaXBhaHQzOA%3D%3D&amp;source=gmail&amp;ust=1771935437033000&amp;usg=AOvVaw24MvtOTPdCbUUNBZgUmb36\">https:\/\/www.instagram.com\/<wbr \/>reel\/DT8D70FDWms\/?igsh=<wbr \/>MWc4enNzaXBhaHQzOA==<\/a><\/span><\/p>\n<p id=\"m_6575290725987885572ember2777\"><em><strong>Amazon:<\/strong>\u00a0<\/em><a href=\"https:\/\/music.amazon.com\/podcasts\/ab0afb48-e3d2-4cf7-8279-7392d97d1bcd\/episodes\/509a93a3-6da3-48bb-b812-b34354ce8edf\/the-curiosity-flip-why-uncertainty-can-be-your-unfair-advantage-candid-sohb-story-with-raj-kamble\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/music.amazon.com\/podcasts\/ab0afb48-e3d2-4cf7-8279-7392d97d1bcd\/episodes\/509a93a3-6da3-48bb-b812-b34354ce8edf\/the-curiosity-flip-why-uncertainty-can-be-your-unfair-advantage-candid-sohb-story-with-raj-kamble&amp;source=gmail&amp;ust=1771935437033000&amp;usg=AOvVaw12AFMBjqaCusQCos0lL_EO\">https:\/\/music.amazon.<wbr \/>com\/podcasts\/ab0afb48-e3d2-<wbr \/>4cf7-8279-7392d97d1bcd\/<wbr \/>episodes\/509a93a3-6da3-48bb-<wbr \/>b812-b34354ce8edf\/the-<wbr \/>curiosity-flip-why-<wbr \/>uncertainty-can-be-your-<wbr \/>unfair-advantage-candid-sohb-<wbr \/>story-with-raj-kamble<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; What if the smartest move on the table&#8230; is the one that looks like surrender? &nbsp; Sit with that. Uncomfortably. Good. &nbsp; There&#8217;s a Japanese soldier named Hiroo Onoda\u00a0who kept fighting in the Philippine jungle until 1974. World War II had ended in 1945. Twenty-nine years of ambushes, survival, and fierce loyalty \u2014 to &hellip; <a href=\"https:\/\/www.sureshdinakaran.com\/blog\/2026\/02\/23\/sunk-costs-when-yesterday-hijacks-tomorrow\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Sunk Costs: When Yesterday Hijacks Tomorrow&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2493","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/posts\/2493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/comments?post=2493"}],"version-history":[{"count":2,"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/posts\/2493\/revisions"}],"predecessor-version":[{"id":2496,"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/posts\/2493\/revisions\/2496"}],"wp:attachment":[{"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/media?parent=2493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/categories?post=2493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sureshdinakaran.com\/blog\/wp-json\/wp\/v2\/tags?post=2493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}