„Brilliant thinking is rare, but courage is in even shorter supply than genius.“ – Peter Thiel
In these times of rapid change and almost tectonic shifts in our business environment, I am often baffled by management teams‘ reluctance to abandon initiatives or projects that no longer fit. At the same time, these projects hinder their potential for greater impact by continuing to consume resources, often forcing an incrementalism that carries tangible business risks.
Still, it’s hard to fault them, since we as humans are evolutionarily wired to avoid losses and struggle with dealing with sunk costs.
A constructive approach to this dilemma is a method called zero-based thinking. Learn more about it in this week’s episode of our podcast:
Have you ever stuck with a project far past its expiration date? We’ve all been there, thanks to the sunk cost fallacy, that little voice that tells us to keep going just because of the time, money, and energy we’ve already invested. But what if there was a better way? In this episode, we’re diving deep into Zero-Based Thinking, a powerful framework for strategic decision-making that asks a simple but profound question: „Knowing what I now know, would I get involved again today?“ We’ll explore the psychology behind why we cling to bad decisions, how companies and individuals can use this tool to cut their losses and foster innovation, and how Zero-Based Budgeting is evolving from a defensive cost-cutting measure into a proactive strategy for growth. Get ready to challenge your assumptions, disrupt your comfort zones, and start thinking strategically like an investor.
Highlights:
- Understanding the Sunk Cost Fallacy
- First Principles Thinking vs. Analogical Thinking
- The Zero-Based Thinking Methodology
- Challenges of Implementing ZBT
- Practical Applications of ZBT
- Zero-Based Budgeting in Organizations
- Innovation Through Zero-Based Thinking
Listen to it here on Spotify:
About Our Spotify Podcast Series
Ready for a brain boost that fits right into your coffee break? Then dive headfirst into Deep Dives with Jane and Austin! Our AI hosts, Jane and Austin, discuss management topics from angles you might not have even considered. Think short, sharp, and packed with fresh perspectives – perfect for sparking new ideas on your commute or shaking up your afternoon slump.
Deep Dives with Jane and Austin are carefully crafted using advanced AI technology. They draw from my talks, writings, and teaching materials from my classes at TH Rosenheim plus hand-curated content from expert sources.
Do you have a burning management question or a topic you’re eager to see explored? We’d love to hear about it: janeandaustin@go3consulting.com