The Most Dangerous Cost in Leadership Isn't Money. It's Commitment to the Past.
/Emotionally, walking away from a past loss feels worse than risking a future one. Psychologists call this loss aversion. People feel losses more intensely than equivalent gains. A million-dollar loss feels catastrophic in a way a potential million-dollar gain never will. That is why leaders keep pouring resources into failing projects.
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One of the hardest things for a manager to accept is that a layoff meeting isn’t a discussion about whether someone keeps their job or even why it’s happening. The decision has already been made. The meeting is short and one-on-one. The news comes from the person’s closest manager, unless that manager is also being laid off. HR is in the room. The manager says a few clear sentences, then HR walks the person through the paperwork and next steps. Short doesn’t mean robotic.