The One Who Knows When to Fold

By James Rector, Publisher
Profiles in Leadership Journal

Why Strategic Surrender is a Mark of Wisdom, Not Weakness

“Cut your losses.”
It’s a phrase we hear in boardrooms, kitchens, and poker games alike. But in leadership, knowing when to let go may be one of the most undervalued skills.

Leaders are taught to persist. Stick with the plan. Prove the doubters wrong. And yes, grit matters. But so does discernment. The smartest leaders don’t cling to projects, positions, or people simply because of past investment. They know that quitting the wrong thing is often what allows the right thing to flourish.

We tend to think of folding as failure. But in truth, it’s often strategy.

A lesson from the home front
Consider a parent who dreams of their child becoming a violinist. They buy the instrument, pay for lessons, and attend recitals. But over time, the child’s passion clearly lies elsewhere, art, sports, science. The wise parent doesn’t double down on their vision. They listen. They pivot. They free their child to pursue what fits.

Leadership at work isn’t so different.

What folding actually looks like

• Satya Nadella, CEO of Microsoft, retired the company’s failing smartphone business and pivoted toward cloud computing, an act of strategic surrender that saved the company.
• Nokia, once a mobile phone titan, failed to pivot until too late. Only when leadership refocused on technology licensing and infrastructure did the company find footing again.
• Blockbuster clung to its retail model even as Netflix innovated. The refusal to fold an outdated strategy led to collapse.
• A mother pulled her child from a prestigious school after realizing it was killing her spirit. The child, now thriving in a creative arts program, found joy again. That’s leadership, too.

Final word

In the end, great leadership isn’t about never giving up.
It’s about knowing what is worth your time, your team, and your energy.

Fold when it’s wise.
Double down when it matters.
And always keep enough chips for the next great hand.