Saturday, June 28, 2008

Cost-benefit decisions

Every decision you make has an associated cost. It may not be monetary, more than likely its not. The trick is to make decisions where the benefit really is greater than the total cost. This week was an exercise in big cost-benefit decisions.

One example: in building one of our demos, I'm assuming a certain amount of monetary cost. The problem is, the process is costing me way more at this point. Costs are tricky--obviously time is a cost, but frustration is a cost, as are good vendor relationships if you lose them. All three of these "hidden" costs are what are causing me rethink the current demo building process in favor of a more streamlined process.

Course corrections are not just warranted when your budget is at risk. You should be looking at all of your costs and adjusting to make sure that your decisions aren't costing you more than you are willing to spend...

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