Dead Horse Theory: When to Pivot in Business
In the fast-paced world of business, leaders often find themselves clinging to strategies that have long since expired. Same in business, we often hold onto strategies that no longer work. The Dead Horse Theory is a blunt reminder that sometimes, the smartest move is to stop, reassess, and redirect resources or simple words “the best decision is to let go”.
One Topic: Dead Horse Theory
“If you’re riding a dead horse, get off.”
This phrase, rooted in Native American folklore, highlights a common mistake leaders make—sticking with failing approaches instead of pivoting.
The Hard Truth About Dead Strategies
When a strategy stops working, most leaders do something counterintuitive. Instead of changing course, they:
- Push harder with the same failing approach
- Create complex reports analyzing the problem
- Rebrand the failing strategy with fancy language
- Invest more resources hoping for a different result
- Blame external factors for the lack of progress
These tactics might feel productive, but they’re just elaborate ways of avoiding reality.
What Really Matters
Leadership isn’t about persistence at all costs. It’s about smart adaptation. When something isn’t generating results, the wisest move is to stop, assess, and redirect your energy.
Why Leaders Fear Letting Go
Abandoning a failing strategy isn’t easy. Sunk costs, emotional attachment, and fear of failure cloud judgment. But the harsh truth is, persisting with a dead horse only prolongs failure.
Three Leadership Principles to Remember
- Be Brutally Honest: Create environments where truth matters more than comfort
- Move Quickly: Decisiveness separates great leaders from average managers
- Act Decisively: Don’t drag your feet. When failure is clear, redirect resources without hesitation.
- Foster Innovation: Encourage experimentation. The next big idea often emerges when you let go of outdated strategies.
Example
Imagine a tech startup spending millions on a product no customer wants. A dead horse leader keeps building. A smart leader pivots, learns from feedback, and creates something people actually need.
The difference? Ego versus adaptability.
Letting Go Is Not Failure
Stopping what doesn’t work isn’t quitting—it’s a strategic move. Successful leaders pivot, reallocate, and create space for innovation. As Peter Drucker said,
“The most dangerous thing in business is to do the right thing for too long.”
In business, success isn’t about staying on the horse. It’s about choosing the right one to ride.
Read last week’s JustDraft newsletter about Goal Tracking and Accountability Partners.
Two Quotes
Leadership is the courage to see reality clearly and the wisdom to change course swiftly.
Strategy is not about perfection, but about intelligent adaptation in real-time.
One Passage From A Book
The ability to make good decisions quickly is a defining trait of great leaders. Clinging to failed strategies for too long drains resources and demoralizes teams. Leaders must be willing to pivot, even when it’s uncomfortable.”
📚 From The Lean StartupThe Lean Startup by Eric Ries
