Dead Horse Theory

Explanation

Dead Horse Theory is a management metaphor describing situations in which organizations continue supporting failing projectsProjectA project is a temporary initiative with clearly defined objectives, resources, and a specific outcome., strategies, or investments despite clear evidence that objectives will not be achieved.

Rather than addressing the underlying issue, additional governanceGovernanceGovernance establishes the rules, responsibilities, and decision-making structures that guide an organization. structures, reporting requirements, resources, or budget are often introduced in an attempt to improve outcomes.

In portfolio managementPortfolio ManagementPortfolio management is the strategic management of a set of projects, programs, or investments within a company., the concept highlights the importance of objective performance evaluation, transparent decision-making, and the willingness to stop initiatives that no longer contribute sufficient value.

Synonyms and Abbreviations

• Escalation of Commitment: Continued investment despite negative evidence
• Sunk Cost Fallacy: Decision-making influenced by past investments