Re: How would you describe this knowledge failure? #strategy #culture #question

Patrick Ready

Hey Stephen,

Organizational change happens more efficiently when team members acknowledge the need for change, thus building a case that convinces other staff that this change is the correct course. However, to build that case, they must have access to accurate, relevant information and then present the case to the larger audience. Governments lack this information as they don't really feel any financial pain from their malinvestments, since their revenue is based on compulsory taxation. So you are absolutely right in that the private entities in the market will feel this pain and react quickly, or be wiped out.

As far as a snappy name for such knowledge failure... I liked Obsolescence Aversion (Alex Zichettello), maybe Innovative Knowledge Barrier, not so catchy I know.

But in poker they call it Pot Committed, economics as you mentioned it's the sunk cost fallacy or the bygones principle.

Interesting thread guys.



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