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Modern Mentor

005 GID Just Flip a Coin Instead

Modern Mentor

Macmillan Holdings, LLC

Careers, Business, Management

4.3726 Ratings

🗓️ 27 November 2007

⏱️ 5 minutes

🧾️ Download transcript

Summary

Consider the cost of deciding as well as the cost of your alternatives.Questions go to getitdone@quickanddirtytips.com or 888-WRK-LESS. Like what you hear? Help us out by writing a review at iTunes!

Modern Mentor is hosted by Rachel Cooke. A transcript is available at Simplecast.

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Transcript

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0:00.0

Stevea Robbins here, and welcome to the Get It Done guys, quick and dirty tips to work less and do more.

0:10.0

Today's tip is about decisions.

0:13.0

The bottom line, if it costs more to research and make a decision than the impact that decision will actually have,

0:19.0

flip a coin instead.

0:25.9

In my first corporate job, we needed a laser printer for our programmers.

0:28.5

The executives met to discuss it.

0:34.9

After all, a $600 laser printer would only save 12 programmers' hours' worth of hassle.

0:39.9

The marketing department had one, true, but then they needed one.

0:45.7

Otherwise, how could they print drafts of the billboard they erected celebrating the company's quote-unquote great beginnings? In the end, they didn't buy the printer. The programmers

0:51.7

would just have to make do, and at night I lay awake

0:54.6

wondering, was this somehow my fault? In retrospect, perhaps I overestimated my own importance,

1:01.9

but I didn't overestimate the decision's importance. The decision not to buy the printer

1:06.7

took four executives, three one-hour meetings to make. The executives made about $100,000 a year

1:13.4

apiece, which is $50 an hour, multiply by four executives and three hours, and we're talking

1:19.3

$600 worth of management time to make that decision. They should have just spent the $600 on the

1:25.1

darn printer. This was the first time I saw that decisions cost money.

1:29.9

And if it costs more to make a decision than the amount you're deciding about,

1:33.7

it's more sensible just to flip a coin or spend the money without further discussion.

1:38.0

That's why some businesses don't even require receipts for small expenses when employees travel.

1:42.8

It's cheaper to reimburse $5 than to handle

1:45.2

the paperwork to document the expense. In my example, the cost was the executive salaries,

1:50.8

but indirect costs can mount up as well. The cost of delays while the decisions being made,

...

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