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LP-006Chronic
Pivot Resistance
Also known as: Strategic Stubbornness, Sunk Cost Syndrome
Leadership PathologyFounder-induced
Key researchers: Tom Eisenmann
Definition
A leadership pathology where persistence becomes pathological stubbornness, preventing the organization from recognizing and responding to clear signals that strategic change is required.
Diagnostic Criteria
- Leadership continues investment in failing strategies despite clear signals
- Sunk cost arguments dominate strategic discussions
- Board or advisor feedback is consistently rejected
- Capital runway depletes without strategic adjustment
Symptoms
- Continued investment in failing strategies
- Reframing failures as temporary setbacks
- Resistance to board/advisor feedback
- Sunk cost rationalization
- Capital depletion without strategic adjustment
Risk Factors
- Founders with high personal investment in original idea
- Previous success reinforcing stubbornness
- Lack of experienced advisors or board
- Echo chamber of supportive team members
References
Additional Sources
- Eisenmann, T. (2021). Why Startups Fail: A New Roadmap for Entrepreneurial Success. Currency.
Classification
- Code
- LP-006
- Localization
- Leadership Pathology
- Primary Etiology
- Founder-induced
- Typical Course
- Chronic
- Functional Impairment
- Volition
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