AbstractThis paper analyses a case of hiring a manager who subsequently proves to be incompetent. Analysis reveals the importance of structural factors in escalation, especially politics. When these are considered, persistence emerges as both escalatory and rational. Likewise, behaviours manifest of information bias are actually logical managerial strategies and may mask political calculation. New potential escalation variables are identified including power, visibility, and organization culture. Withdrawal reflects an intricate balancing of factors including risk and opportunity. The theoretical implications of the findings are discussed.