The Daily Drucker: January 6 – Practice of Abandonment

If we did not do this already, would we get into it now?

The question has to be asked – and ask seriously – “If we did not do this already, would we, knowing what we know, go into it now?”  If the answer is no, the reaction must be “What do we do now?”

In three cases the right action is always outright abandonment.  Abandonment is the right action if a product, service, market, or process “still has a few years of life.”  It is these dying products, services, or processes that always demand the greatest care and the greatest efforts.  They tie down the most productive and the ablest people. But equally, a product, service, market or process should be abandoned if the only argument for keep it is “It is fully written off.”  For management purposes there are no “cost-less assets.”  There are only “sunk costs.”  The third case where abandonment is the right policy – and the most important one – is the one where, for the sake of maintaining the old or declining product, service, market, or process the new and growing product, service, or market is being stunted or neglected.

ACTION POINT: Ask the question posed above and if the answer is no, make the tough choice to abandon a cherished business.

Quoted from The Daily Drucker, Page 8