Choice Costs: Every decision has a cost. Giving up is also a choice, and therefore, it carries a cost as well. The purpose of spending money is to gain the efficiency or benefit of a chosen option. Organizations can be at risk if leaders fail to correlate costs and benefits when making decisions or relinquishing opportunities. For example, if a CEO decides to hire an employee, there is a cost associated with wages, and if the employee cannot perform their role corresponding to the wage, the organization suffers a loss. Ultimately, if the CEO fires that employee, the organization must find a replacement, incurring additional costs in the process. A CEO who spends excessively on emotional indulgences is a harmful leader. - Joseph’s “just my thoughts”
Weather forecasters on the news often feature well-dressed meteorologists who diligently explain the weather using various meteorological terms. But if the forecasts were always accurate , there would be no need for such lengthy explanations. People wouldn’t complain if it were simply raining or not, if the temperature was a few degrees, and if the humidity was comfortable or uncomfortable. However, since there’s a chance the forecast could be wrong , they try to explain it thoroughly to ask for people’s understanding. Do you see why simplicity is great? Simplicity is great because no one can simplify it haphazardly. - Joseph’s “just my thoughts”