How to Rethink a Bad Decision | WorkLife with Adam Grant

Escalation of commitment occurs when individuals or organizations double down on failing courses of action to protect their ego and public image rather than cutting losses. This psychological trap, often fueled by sunk costs and anticipated regret, leads to prolonged involvement in dead-end projects or toxic environments. To mitigate this, organizations should separate decision-making from original proponents, introduce objective outside perspectives, and establish pre-defined "kill signals" to trigger exits when benchmarks are missed. Furthermore, normalizing failure by rewarding diligent decision processes—regardless of the final outcome—encourages transparency and prevents the emotional attachment that keeps failing projects alive. By shifting focus from personal identity to the greater good, teams can effectively pivot toward more viable opportunities, as demonstrated by successful exit strategies and corporate cultures that celebrate the wisdom of pulling the plug.