10 January, 2026
Have you ever seen organizations continue investing in the wrong investment opportunities, even when all the warning signs are clear?
This syndrome is often called Chasing the Loss. It happens when organizations keep funding a project, program, or investment despite strong evidence that it will not deliver the expected returns or benefits.
One practical way to avoid it is to develop a Business Case for every investment proposal, whether it is a small project or an extensive strategic program. A well structured business case acts as a safeguard against poor decisions driven by pressure, optimism bias, or sunk costs. It helps decision makers assess strategic values, risks, benefits, costs, timelines, and expected benefits in a structured way.
Importantly, a Business Case should not be treated as a static document. It must be continuously reviewed at key stages, especially at the end of the investment phase or cycle. As internal and external conditions change, the Business Case should be updated regularly to reflect reality, which helps establish strong governance. When expected outcomes are no longer achievable, the Business Case provides the evidence needed to either modify it or prematurely end it.
As Herman Hesse once said:
“Some of us think holding on makes us strong, but sometimes it is letting go”
Letting go of the wrong initiatives early and reallocating resources to better opportunities is far wiser than holding on and negatively impacting the entire strategic portfolio.
Finally, chasing losses is not limited to the corporate world. It also applies at a personal level. To avoid this syndrome, regularly assess costs and benefits, and be honest about whether putting more money into this investment makes sense.
Often, stopping today saves far more than the cost of realizing months or years later that the decision to quit came too late, or that it would have been far cheaper to quit back then.
