Monday Mornings with Madison

Monthly Archives:
July 2019

Decision-Making and the Sunk Cost Fallacy, Part 1

There are many factors that affect the decision-making process, both personally and professionally. One factor is called “escalation of commitment”, when we commit further to a course of action or direction simply because of a past decision. This is often because of the sunk cost fallacy… a highly illogical but common thinking error. It is a major problem for companies weighing whether to persevere or reverse course on a decision. So what is the sunk cost fallacy and who is vulnerable to it? Is there a way to side-step this flaw when making business decisions? Continue reading

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Maximizing Meeting Effectiveness

According to an article published by MIT Sloan Management Review, “Meetings are a central fact of organizational life.” They can be invaluable as a mechanism to disseminate vision, craft strategic plans, develop responses to challenges and opportunities, brainstorm and gather ideas, and generate higher levels of employee involvement. They key words there are “can be.” So many meetings end full of promise and momentum… and then nothing else happens. Even a skillfully organized and expertly managed meeting can end up being a total waste of time. Why? Because it is only what happens AFTER a meeting that really matters. That is where the proverbial rubber meets the road. So how do you maximize meeting effectiveness? Here is how. Continue reading

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To Meet or not to Meet, that is the Question

“Business” and “meeting” go together like mac and cheese. But most folks agree that meetings are akin to having dental work… meaning that at best it is a painful necessity and at worst an activity to be avoided at all cost. However, when done right, meetings can be effective way to increase interaction, cooperation, teamwork, creativity and connection. The key thing to understand is that there is no one-size-fits-all or ‘right way’ for how companies should handle meetings. It varies depending on company’s size, culture, technical tools, industry, and tasks. Here are some meeting best practices to increase meeting effectiveness. Continue reading

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How Companies deal with “Bad Employees”

Every company hires employees that don’t work out from time to time, for one reason or another. It is unfortunate given the cost to replace employees, but it is normal. There are many reasons why employers may hire employees that, even after extensive vetting, ultimately don’t work out. Lack of real skills. Bad attitude. Idleness. Gossiping. Personal problems. Clashes with management. When it is clear that an employee is just not a good fit for the job, you’d think that the logical next step is to terminate that person’s employment. But, more often than not, business leaders do not let go of bad employees right away. Quite the contrary. Firing is often the path of last resort. Why is that? Is that wise? Continue reading

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Penny Wise and Pound Foolish in Business

An old idiom warns about not being “penny wise and pound foolish.” It cautions against being stingy with small amounts of money while extravagant with larger sums. In business, this would apply to companies that cut corners on small costs, yet spend extravagantly for other expenses of questionable value to the business. But, it might be just as concerning for companies to be overly stingy with big expenditures and lavishly generous with seemingly insignificant expenses that add up. It might not seem like it but it is not good for leaders to be either penny-pinching misers or extravagant spendthrifts. To what extent companies are willing to spend on a multitude of items sends a message to staff. So what is the right balance? Continue reading

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