Law Department Management Blog
The best way to make good decisions is to ignore what you have invested to date, say for example in your matter management system or the furniture or the library. Set aside thoughts about what you have poured into the hole; think only whether going forward, if you were starting afresh, you would keep the resources flowing to support the asset.
The sunk-cost fallacy refers to how all of us pine too much for money spent and find it difficult to abandon the past’s expenditures: “How can we change our portal after all we have invested in training, software, and customization?” The rational question is more like: “Forget the past. Is this improved portal what we want for the future?”