Decision technique

Incremental-value check

Evaluate the next step using future cost and value rather than resources already spent.

When to use

A specific reasoning move for a specific problem.

When a project, product or career path continues mainly because of past investment.

Procedure

Run the technique.

  1. Write what has already been spent and mark it as unrecoverable.
  2. Estimate the future cost of the next step.
  3. Estimate the future value and uncertainty of the next step.
  4. Ask whether you would fund that next step if the project arrived today with no history.

Limit

What this technique cannot guarantee.

Past investment can contain useful information about capability or switching cost; ignore sunk cost, not relevant future consequences.

Situations

Where this may be useful.

Use inProduct prioritization

Review roadmap choices without letting the loudest request, recent event or prior investment define value.

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Use inCareer change

Compare staying, moving or reskilling without letting salary anchors, sunk time or today's mood decide the future.

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Evidence-linked concepts

Why this check may matter.

Related lensEscalation of Commitment

Read the evidence and limits before treating this technique as relevant.

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