Two definitions of done can both be true
Two people close the same piece of work at different moments and both of them are finished. What separates them is not care and not skill, it is what each one is holding the work up against, and where the
sunk work
Meaning
Sunk work refers to effort, time, or resources already invested in a task, project, or endeavor that cannot be recovered or reversed, regardless of the future course of action. This accumulated contribution represents an unchangeable past cost, distinct from future expenditures or potential returns. It is a critical concept in decision-making, as rational choices should focus on future costs and benefits, not on past investments that are irrecoverable.
Irrecoverable Investment
Sunk work represents an irrecoverable investment made by a founder, whether in terms of hours spent, intellectual effort, or direct monetary costs. Once these resources have been applied, they cannot be retrieved or reassigned to other tasks, even if the current path proves unviable. Recognizing sunk work means acknowledging that these past efforts are simply gone, serving as a historical record rather than a determinant for future action.
This understanding frees a founder from continuing efforts solely to justify past expenditures.
Decision Constraint
The presence of sunk work can act as a decision constraint, particularly when a founder finds it difficult to abandon a project due to the sheer volume of effort already invested. This can lead to the irrational escalation of commitment, where more resources are poured into a failing venture in an attempt to validate previous investments. This constraint often imposes a significant cost in terms of foregone opportunities.
It traps a founder in a path that offers little future benefit.
Opportunity Cost
The principal cost associated with sunk work is the opportunity cost that arises from clinging to it. Every hour or unit of capacity spent trying to salvage a project with substantial sunk work is an hour or unit that cannot be dedicated to a new, more promising endeavor. A founder who acknowledges sunk work can reallocate attention and resources to new initiatives that offer a better return.
This perspective quantifies the cost of not moving on.