Each day we make a lot of small decisions that don’t mean a lot. However, when we string them together as a consistent habit they can make the Difference between happiness and Despair. Here we look at how to make smart decisions.
Every time an investment d
However, it has a built-in trap. It ties you to your existing capability. In contrast, any startup competitor does not have a marginal cost, they only have the full cost. And, therefore they’re more likely to experiment with creating the new capability in a new way. And, this becomes the potential seed for market disruption.
[Tweet “Why it’s better to do it 100% than 98% #marginalthinking”]
Marginal thinking allows you to see the cost of the new investment, however it hides the cost of not investing. This is the innovators curse. When things are going well, why would you invest in something else that is not proven? In the short term your decision will be correct. And, in the longer term it’s likely to cost you badly as new players take up the opportunities you failed to pursue. This is why Netflix beat Blockbuster.
Marginal thinking also applies to our decisions. The marginal cost of doing something ‘just this once’ seems small. Yet, it often leads to a slippery slope and possible regret. Drugs, insider trading and marital affairs often start in this way because the allure of ‘just this once’ and marginal thinking hides the true cost of our actions. It’s easier to stick to your principles 100% than 98%!
This is an extract from the Book Rapper issue CEO of Your Life and is derived from the book by Clayton Christensen, James Allworth and Karen Dillon, How Will You Measure Your Life? Here is a review of this book, plus a peek at the Book Rapper issue.
Here are ten personal mission statement examples from famous youtubers. They each have millions of…
What’s the difference between vision mission and purpose? And most importantly, what’s the best way…
Do you want some inspiration for your life? Here are 15 of the best Purpose…
Purpose synonyms are other words that have a similar meaning to purpose. And this is…
Previously, I shared 11 corporate purpose statement examples. I thought they were generic - many…
Today I’m sharing 11 purpose statement examples from global companies. You’ll know the companies but…