Rishi Sunak got it wrong
Rishi made a textbook mistake with HS2 - pulling the plug on the easy end but leaving most of the costs to be incurred and the most difficult stuff to be done. He misunderstood the sunk cost fallacy.
No-one will ever treat HS2 as role-model project (putting it mildly), but when he canned the rest of it, the tough stuff was committed. He cancelled the easy bit at the end that unlocks the benefits.
The sunk cost fallacy says you shouldn’t keep spending future money just because of the money you’ve already sunk. You should simply look at what you’re still willing to invest and what the benefits would be. In the case of HS2, Rishi kept most of the costs but lost most of the benefits.
This applies to our own projects just as much as national infrastructure.
Take Action
If you’re a leader:
Don’t confuse early pain with future risk. Before you pull the plug, ask: what’s still to spend and what do we get for it?
If the benefits still lie ahead, quitting now just locks in the worst of both worlds.
If you’re a team member:
Don’t just report what’s been spent; reframe the decision. Focus attention on what’s left to invest and what that buys. Help leaders weigh future cost against future value, not past pain.