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Do it Now, Do it Later, Don't Do it at All

 How Do I Consider The Costs

 Decision Drivers

As with any decision the outcome is the result of converging forces.  In the end it is a matter of “return vs. cost” and “benefit vs. risk".  Often the benefit to be gained will not be immediately obvious on the bottom line.  Perhaps the benefit is to implement an infrastructure that will provide a competitive advantage or enable future options.  Both of which may be a short term cash drain, but be necessary for long term survival.  Ultimately an investment must pass the test of providing a gain through improvements in safety, quality, or productivity.

 In Summary

While there are models that can facilitate an organization through the decision making process and help quantify the financial impact of an initiative, there are times when ultimately the decision to push the start button is made by one individual at the top who “believes/feels” it is the right thing to do.  Case in point:  To travel north from Da Nang, Vietnam one must first cross a treacherous mountain range that surrounds this ocean port city.  This is a dangerous trek that can take one to two hours.  The cost in terms of dollars and human life to tunnel through this mountain range was staggering.  From a balance sheet perspective, it certainly was not worth the investment.  However, once completed, the tunnel will benefit millions of people for generation to come.  There are times when “vision” must trump “ROI”.  This gets into long term strategic vs. short term tactical initiatives, which is a topic for another day.

It is my belief that:  “when in doubt, do nothing”.  However, it is also my belief that one should never be in doubt!   Page 1