1. “We’ve Already Spent the Money”
This shows up when teams:
- Continue bad projects because time or money was already invested
- Keep underperforming staff or suppliers “because we’ve come this far”
Past costs are gone. Only future impact matters.
2. “Let’s Just Discount to Close the Deal”
Common in Sales, but felt across the business.
Discounting:
- Feels like a quick win
- Often wipes out months of hard work in margin
Not all revenue is good revenue.
3. “Everyone Else Is Doing It”
Seen in:
- Hiring too quickly
- Adding tools or systems
- Expanding before systems are ready
Popular decisions aren’t always profitable ones.
Make Finance Clear
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What This Looks Like by Team
Sales:
- Chasing volume instead of quality revenue
Operations:
- Over-servicing customers without tracking cost
HR:
- Hiring for speed instead of sustainable capacity
Leadership:
- Approving projects without understanding payback
Fun (and Uncomfortable) Fact
Most financially damaging decisions feel reasonable in the moment.
The problem only shows up later – in cash flow, margins, and stress levels.
One Simple Action This Month
Before approving a decision, ask:
“What problem are we trying to solve – and what will this cost us over time?”
That one question alone improves decision quality dramatically.
