Hail Mary Psychology
Don't let it destroy your business
Hail Mary Psychology has destroyed many businesses. And the scary thing is, we've all practiced it.
Ever wonder why Bud Light went woke? Or why so many brands make the same mistake to destroy the equity that took them decades to build?
Generally it's because they are in a bind. Forecasts aren't looking good and they're looking for a single savior to fix it. It's the same psychology that leads people to elect Dictators in time of duress. It's easy to imagine all our problems being solved with a single, aggressive solution. It calms our anxiety the way taking a Xanax might.
But just like taking a Xanax, the cure is only temporary and the underlying problem is almost never addressed by just a single aggressive solution.
Even if your company has zero risk of going woke, other forms of Hail Mary Psychology include:
-Overpaying a key executive to spearhead a turnaround, then over-investing in his turnaround plan before seeing signs of progress
-Acquiring a company that ostensibly does the single thing your business is missing, without conducting proper due diligence because you *want* to believe your oasis is near
-Investing in an emerging technology or trend without really understanding if your business can utilize it.
Relating to the last point, I remember so many business owners would ask me about Google's hiring practices back when they were the envy of the world. And I would always tell them that it makes sense to replicate once your company becomes a multi-billion dollar monopoly. But until then, it's probably best you don't.
If you realize that you've previously been guilty of following Hail Mary Psychology, and you want to be sure it isn't clouding your judgment today, add a comment on this post or shoot me a message!