Knowing When to Let Go The Dead Horse

 

Have you ever seen a failing project that just won’t be shut down? Instead of moving on, companies pour in more resources, change leadership, or alter strategies—while ignoring the simple truth: the horse is dead. This is the essence of the Dead Horse Theory, which highlights how organizations struggle to let go of failing initiatives.

We encounter Corporate Dead Horses when persistence turns into stagnation. In the business world, failed projects often continue well past their prime because of sunk costs, emotional attachment, or the reluctance to admit failure. Instead of acknowledging reality, organizations might try to fix it by changing their ways of working.

- Assign a new project manager.

- Change the strategy or methodology.

- Increase the budget.

- Conduct endless meetings to “find a solution.”

I once worked with a company that was inducting it's new employes by showing age old videos of how the organisation grew over years. The management felt a sense of pride to share their growth journey. Despite poor feedback from the participants and them not knowing the purpose of the videos, the management would want to stick to this as they believed it's a legacy which they want to display through these videos. It was taking up time and not adding value. Untill they realised that one fine day, it was like a dead horse they were trying to revive. 

The cost of not letting go is high. The unwillingness to accept failure wastes resources, drains morale, and blocks innovation. Knowing when to move on isn’t giving up—it’s making space for better opportunities.

Key Lessons:

- Evaluate honestly: Are you making real progress, or just avoiding the inevitable?

- Acknowledge the sunk cost fallacy: Just because you’ve invested time and money doesn’t mean you should continue.

- Be willing to pivot: Sometimes, cutting losses is the best decision.

If you find yourself in a corporate dead horse scenario, ask: Are we trying to revive something that no longer works? If so, it may be time to let go and move forward.