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112 Chapter 6: The Escalation of Commitment

irrationality is that many situations may look like opportunities but prove to be traps

until you have fully considered the likely actions of others.

INTEGRATION

This chapter has suggested four additive causes that contribute to our tendency to escalate

commitment to a previously selected course of action. Each one can cause escalation

independently, but they more often act together to increase a decision maker’s

nonrational tendency to continue a previous mistake. To reduce escalation, we must

attack each cause at the individual and organizational levels.

Overall, the findings on the tendency to escalate suggest that managers need to

take an experimental approach to management. That is, as a manager, you should make

a decision and implement it, but be open to dropping your commitment and shifting to

another course of action if the first plan does not work out. This means constantly reassessing

the rationality of future commitments and learning to identify failures early.

Finally, a caveat: While this chapter has dealt with situations in which commitment

is taken too far, it is also important to consider the other side of the spectrum. In certain

scenarios, you should maintain or even escalate your commitment to a chosen course of

action, primarily to keep your options open. In business and personal relationships, you

may feel as if you should give up when a situation becomes difficult. It is important to

realize, however, that by ending a commitment, you may lose out on all future benefits

from the relationship. Often, maintaining a relationship provides you with more options

as you move forward. This advice may seem to run contrary to the discussion of escalation

of commitment. One argument seems to urge caution while the other supports

taking chances. In fact, they can be reconciled. The key is to make decisions without

regard to sunk costs and instead with a focus on the future benefits and costs of your

choices.

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