Dead Horse
The American Indians have an old proverb that says: *When you see your horse dead, get off.* You might think that this proverb is a statement of the obvious. However, it is enough to look a little at the way we manage ourselves or the companies, organizations, and economic enterprises around us.
Unfortunately, the horse of many companies and organizations is dead! In other words, these companies and organizations are either practically bankrupt or are busy providing products and services that have passed their time and are not welcomed by customers. But surprisingly, most of them do other strange things instead of getting off the dead horse.
For example:
They buy a newer whip and beat it harder on the dead horse!
They change the riders!
They appoint a committee to study how to improve the performance of the dead horse!
They go on missions to other countries to see why their horses perform better!
They lower the standards to include dead horses and classify dead horses in a new category called immobile live!
They hire external contractors to actually drive the dead horses and ultimately pay for this work from the company or organization’s budget!
They use several dead horses at the same time to actually create movement and change!
They allocate more budget and training to improve the performance of the dead horses!
With the help of statistics, they declare that because the dead horse does not eat, costs have decreased, so if we are patient and patient, in the future, profits will increase!
They consider the performance of the dead horse to be normal and the performance of other horses to be extraordinary, so they see no reason for liquidation or fundamental change!
Despite the lack of efficiency, productivity and profits, they increase the salaries of the board of directors of the dead horses to maintain the motivation of the managers!
And in a word, they increase the cost of a dead horse tenfold because they do not see or accept the obvious or think they have preserved the status quo!
In behavioral economics, a corner of such issues is addressed under the title of the sunk cost fallacy. And I remind you not to forget our beautiful proverb that says: *Whenever we prevent a loss, we have made a profit. / Quoted from Insurance 24
This post is written by Kamran_rjb