Turn the Titanic
Change direction when continuing would sink the people who trusted you
- Difficulty
- Advanced
- Time to result
- ~weeks to results
- Steps
- 7
- Confidence
- 96%
Turn the Titanic reframes a pivot as a captain's responsibility rather than an admission of weakness. The leader examines current economics, operating constraints, and capital requirements, then asks whether continuing toward the original destination would endanger everyone who trusted the venture. Prior effort and spending are treated as sunk costs, not reasons to compound the damage. If the leader can see an iceberg, the duty is to change course, explain that the destination has changed, and preserve the people and resources still aboard. The framework combines quantitative reassessment with leadership judgment and requires transparent stakeholder communication after the decision.
Origin
Lori Harder heard the Titanic metaphor during a crisis in which her beverage company faced broken economics, licensing barriers, and the prospect of raising another $10 million. Extracted from The Jasmine Star Show.
Core principles
- 01Leaders must respond to dangers others cannot yet see
- 02Past investment does not justify future destruction
- 03Protecting stakeholders can require changing the destination
- 04A viable pivot is better than loyalty to a sinking plan
- 05Renewed energy can signal stronger strategic alignment
How to run it
- 1
Locate the iceberg
Update the economics and operational assumptions using current evidence. Identify whether the threat is temporary friction or a structural failure.
Pro tip Rebuild the margin and capital model instead of relying on the original plan.
Watch out Stress alone is not proof that the strategy is unviable.
- 2
Ignore sunk-cost pressure
Separate money and effort already spent from the expected value of spending more. Evaluate the next decision from the present position.
Pro tip Ask what you would choose today if you inherited the remaining assets and obligations.
Watch out Continuing solely to justify past spending can deepen the loss.
- 3
Price the current destination
Estimate the additional capital, time, risk, and capability required to continue. Compare that requirement with a realistic probability of success.
Pro tip Ask a domain expert to challenge your assumptions.
Watch out Do not use best-case acquisition hopes as the base case.
- 4
Define the alternate course
Identify a pivot that can use remaining capital, relationships, and relevant capabilities more effectively. Confirm that it has a more credible route to value.
Pro tip Favor a model aligned with the founder's strongest distribution and operating skills.
Watch out A pivot still requires validation; a new destination is not automatically safe.
- 5
Make the captain's decision
Choose whether to continue or turn based on stakeholder protection and future viability. Accept that both options may feel painful.
Pro tip Notice whether one option restores the energy needed to lead responsibly.
Watch out Do not outsource the final responsibility to advisers.
- 6
Announce the changed destination
Tell investors, employees, and partners what changed, why the original route no longer works, and how remaining resources will be used.
Pro tip Lead with evidence and accountability rather than excuses.
Watch out Delaying communication encourages speculation and further waste.
- 7
Redirect resources
Stop spending against the abandoned plan and move the team, capital, and operating cadence toward the new strategy.
Pro tip Create explicit stop-doing and start-doing lists.
Watch out A nominal pivot that preserves old commitments will not remove the underlying risk.
In the wild
Pandemic supply disruptions, escalating order minimums, poor margins, and licensing demands made Lori's beverage model increasingly untenable. An industry expert said she would need another $10 million merely to have a chance to compete. When authorities later requested every investor's fingerprints, Lori declared the original plan finished and redirected the venture toward Glossy, a powdered beauty-hydration supplement better aligned with her skills.
→ The decision preserved a path forward and restored Lori's energy after years of pressure.
Common mistakes
Confusing persistence with leadership
Relentless effort becomes destructive when evidence shows that the current route will consume stakeholders' remaining resources.
Pivoting without updated economics
A painful feeling may prompt review, but the decision should be supported by current margins, capital needs, and operational evidence.
Changing course silently
Stakeholders need a direct explanation of the changed destination and the plan for remaining resources.
Is it for you?
Best for
It is best for founders and leaders facing evidence that an existing strategy is structurally unviable despite significant prior investment.
Not ideal for
It is not ideal for temporary setbacks that have not been investigated or for impulsive pivots based only on discomfort.
From the transcript
“And there are times where I think it's called the cost some fallacy, where it is like you keep pushing because of the amount of…”
“Okay, turn the Titanic because you're the captain and everybody on the ship just wants to be along for the ride.”
“They don't care about the destination like it's about what you're doing, and you see the iceberg. And if you keep going, you're going to…”
From the episode
Facing Truths and Making Hard Decisions with Lori Harder
Lori Harder