Zero Based Thinking is a decision making process that involves imaging yourself back at a point before particular decisions were made and then asking yourself ‘knowing what I do know now, would I have made that decision?’

The question in a broader context:”is there anything in your life that knowing what you know now; you would not get into if you had to do it all over again?’

If yes, then you follow with the questions, How do I get out?  How fast do I get out?

Zero Based Thinking puts all previous decisions to test and goes against the traditional dogma of keeping to something because we have invested a lot of time, money emotions in the past.

It requires removing emotion from decision making. It is about stripping away everything except hindsight and using the clarity that it brings to make the hard choices.

Zero based thinking enables you turn around if you are heading in the wrong direction. Many a time, the solution to our biggest problem is simply to discontinue some activities completely.

Avoid the sunk cost fallacy. A sunk cost is past cost that has already been incurred and cannot be recovered. Sunk costs are completely irrelevant for decision making because our decisions cannot change the past. Rational decision making requires determining the course of action that will have the best results from this point forward

Simply put, take the information you have today and determine if you want to continue an activity you’re doing.

  • You don’t have to continue a product line just because of the money invested in the product
  • You don’t have to continue a relationship just because of the time, emotions and money invested in it.
  • You don’t have to keep unproductive employees just because of how much you have spent on their man power development.

Zero Based Thinking can be extremely is freeing. It is the way to go.

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