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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

  1. Leadership continues investment in failing strategies despite clear signals
  2. Sunk cost arguments dominate strategic discussions
  3. Board or advisor feedback is consistently rejected
  4. 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

  1. 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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