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Throw good money after bad

Rita McGrath is quoted at the CFOZone.com site in a post by Sheryl Nash. “Companies all too often stick with losing ventures despite signs of trouble, critics contend. But they acknowledge that it is often difficult to determine just how long is too long.”

“The majority of companies I work with have no rigorous process for disengaging at all, with the result that it usually ends in a nasty mess,” says Rita Gunther McGrath, an associate professor at the Columbia University business school. Instead, Gunther McGrath says, they explain away declines in these benchmarks, even though they are indicative of larger potential problems. And without a plan to turn things around, those problems will inevitably materialize, she says.

To read the entire post, click here.

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