"Burning Other People’s Opportunity Cost"

Part of effective planning includes counting the costs.  This is not only logical, it is biblical.  Jesus tells us in Luke 14:28-30

“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?  For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you, saying, ‘This person began to build and wasn’t able to finish.’”

Admittedly this was a parable intended to explain the cost of being a Christ follower, but, if you will allow, I think it also fits with the more general point about counting costs in our planning process. It can also be applied to the less obvious cost consideration, opportunity cost.

Counting the opportunity cost does not only include the spender’s opportunity cost.  It also includes the opportunity cost of others since most of our plans include other people.  They also have an opportunity cost in this equation; specifically an opportunity cost in terms of time.

Sorry.  That was a lot of context to set up my point.  

Have you ever considered the amount of other people’s opportunity cost (OPOC) you burn through the execution of  your plans?  Maybe you’ve had your opportunity cost burned within someone else's plan.  I know some “talented planners” (TP) who can burn tons of OPOC.  

TP - “Will you help me with my assignment?”

Me - “Sure, when do you want to start?”

TP - “In a minute.  Let me close out of this other work first.”

Me - “Ok.  I won’t start my taxes right now so I can help you.”

-25 minutes later -

Me - “Thought you needed help with your assignment?”

TP - “Oh...Yeah.  Let me close out of this other work first”

Me - “Breakfast will be ready in 15 minutes.”

TP - “I will be right down.”

- 30 minutes later, with reheated food -

TP - “I have to go to the bathroom first”

Me - “We need to run to the store, do you want to come with?”

TP - “Sure, let me finish this game first.”

- 20 minutes later -

Me - “I going to wait in the car.”

Smell that?  It’s burning OPOC.

- What is Your Plan? -

The Alarm Clock Paradox

I will start with an apology to my three readers… I am sorry for the absence.  I had shoulder surgery in October and lost my writing rhythm.  Rest assured, I am back and I plan to continue the blog as long as you three remain entertained.  Onto the Alarm Clock Paradox.

I would like to back a bold statement… The worst time of the day for decision making is during the moments immediately following the rude blast of the alarm clock.  Sure, you are the one who has to go to work or school and you were the one that selected the wake up time, but that doesn’t mean you are going to make a good decision the second you hear the sleep shattering BEEP, BEEP, BEEP.

A typical morning in our house:

The alarm is set for 5:30 am.  [This is totally reasonable since the family member has to leave the house at 11:30 am for an appointment. What??? Might be a different kind of planning problem, but I digress]

The alarm starts its progressive crescendo for BEEPS at 5:30.  The first moment of bad decision making is to do nothing and let the BEEPS continue their upward spiral.  After what seems like 35 minutes, those BEEPS stop with the tap of the snooze button.

But wait, there is a second alarm horn wailing in the same room.  If one poorly set alarm is good, then two is better and doubles the opportunity to make bad decisions.  This second alarm is somehow silenced.  Apparently, this second alarm is a complete surprise to this family member.  

After 9 minutes, as you would guess, the cycle repeats prompting another round of bad decisions.  This time, the magnitude of the bad decision increases.  The alarms are turned off completely, and the comfort of the warm bed beckons.  The warm bed seeker is completely unaware that the entire household is awake and is looking to seek revenge for their interrupted slumber.

With no alarms to interrupt the peaceful rest, our slumberjack doesn’t wake up until 11:05 am with a loud “Oh, crap!”  He’s not sure if he is going to make it out the door on time and there are no sympathetic family members who are willing to assist.  Oh, and did I mention it is a Saturday!

At some time or another, I think we’ve all made bad decisions immediately following the alarm's first clang.  My strong recommendation is never ever put yourself in a position to negotiate with your alarm clock.  It will almost always deceive you, over and over again.

Proverbs 26:11 “As a dog returns to its vomit, so fools repeat their folly.”

-- What is Your Plan?--

“One of the Greatest Minds”

My wife and I are truly blessed to be in such close proximity to “one of the greatest minds of the 21st Century”.  What an honor.

Budgeting is a great planning tool.  Having a monthly family financial budget means having a plan for where your money is going to go in the next month.   

Having a home improvement project budget means knowing how much you can spend before you cut the first board or, in my case, it gives my wife an estimate before she applies the man-pi factor (3.14 x his estimate).  

Having a time budget means fencing blocks of time for yourself to accomplish all your tasks for a day.  This application of budgeting was especially useful during a recent “planning session” with our oldest son.  

He thought it would be a very good idea to set a daily budget of time so he could get his work done and, more importantly, get us off his back.  We were very proud when he set up his time budget all on his own and it was very reasonable.  30 minutes for a meal, 4 hours for school work, 30 minutes to stretch, 20 minutes to get ready in the morning, …… and so on.  It actually showed that he was going to be up and out of bed by 8:30.  Not bad considering this is one of our “sleepy teens”.

As my wife was reviewing his time budget with him, it was apparent that he was also proud of himself for putting it together.  It really was a nice plan.  When she complimented him on his time budgeting abilities he returned a confident response: “Well, when you’re dealing with one of the greatest minds of the 21st Century, you have to keep organized”.

Oh, yes.  He actually said it.  Modest is this one.  I really wish he would break out of his shell.

Proverbs 26:12 “Do you see a person wise in their own eyes?  There is more hope for a fool than for them.”

- What is your plan? -