Sunday Spark

Share this post

The opportunity cost of decision-making

sunday.sparknotion.com

The opportunity cost of decision-making

Every decision comes with a cost. Choice A brings us X, but what are we giving up by not choosing Choice B? Sometimes not that much, and Choice A is the best choice, but that’s not always the case.

Miguel Lavigne
May 30, 2021
3
2
Share this post

The opportunity cost of decision-making

sunday.sparknotion.com

In economics, the opportunity cost refers to the benefits we lose by not choosing the alternative option when making decisions. For example, every time we spend a dollar on something, we pay an opportunity cost. With that decision, we lose the ability to have that dollar work for us long-term. Instead, had we had invested it, in 10, 20 or 30 years from now, what would it be worth? That’s the opportunity cost.

Every decision we make has an attached opportunity cost. Choice A brings us X today, but what are we giving up by not choosing Choice B? Sometimes not that much, and Choice A is the best choice, but that’s not always the case.

What about the status quo? We’re all familiar with the term. “Hey, why are we doing it that way? Because that’s the way, it’s always been done.” We see that in our organizations as they start to grow and their ability to change slows. The decision to stick to the status quo is costly; it comes with its own opportunity cost. Sometimes small, but often significant. When we don’t speak up and push back, the status quo wins; everyone pays the price.

We also see it in ourselves. When we look into the mirror, we notice our current ways of being. When we’re brave enough to reflect on them, we might see some of these ways have become our status quo. We cling to them because they are familiar, easy and often because we don’t have the courage or focus to change them.

These decisions are our personal status quo, and they also come with a huge opportunity cost. We bring ourselves and our ways into our personal, work and business lives. Some of these hold us back and cost us considerably. If we don’t decide to challenge them, we pay the price.

Brené Brown, in her book Dare to Lead, has a great quote; don’t let it happen to you.

What stands in the way becomes the way – Brené Brown

It might be time to re-evaluate and decide if we’re willing to continue to pay the opportunity cost of sticking to our old ways. What are they costing you?

Leave a comment

Miguel,
Sparknotion – Think Differently.

2
Share this post

The opportunity cost of decision-making

sunday.sparknotion.com
Previous
Next
2 Comments
Richard Lalancette
May 31, 2021Liked by Miguel Lavigne

This process of re-evaluating is growth. And leaving room to grow is key! Also, been easy on yourself for mistakes. Mistakes are growing too!

Expand full comment
ReplyCollapse
1 reply by Miguel Lavigne
1 more comment…
TopNewCommunity

No posts

Ready for more?

© 2023 Sparknotion
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing