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Lesson 2: Accounting for Management Debt

Make tough decisions instead of delaying them. Resolve small issues before they become big problems.

Neglect a small leak long enough, and it can bring down an entire building. Cracks widen, mold spreads, and what was once a minor issue turns into a costly disaster. Organizations tend to work in the same way, according to venture capitalist Ben Horowitz. Every time a leader avoids a tough decision — for example, by keeping a poor performer, delaying a …

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