Consider the value before the cost

When you consider starting a new project, do you like to think of the cost first, or the value?

Naturally, before undertaking a new project you’ll want to consider both cost and value. If the value isn't worth the cost, you can just avoid wasting the resources.

But for me, something odd happens at this point:

Before I spend even 2 seconds thinking of the value, my mind leaps into a calculation of the cost. And that leads quickly into a flurry of ideas about how I could get it done:

• Who I can hire, and how much that might cost

• Technologies I might use, and the ease of maintaining them after launch

• All the features or systems I'll have to build, and how much of my own time that might take

Frankly, that's a lot of fun to think about.

But all that planning takes time. And that time is an investment all by itself.

And if I go that route, I'm making that investment without ever once thinking about the value of what I'll get at the end.

So I've learned to stop doing that.

The better way:

First I think about the value.:

If I complete this project successfully, what will it get me, and what is that worth to me?

In dollars, or hours saved, or in some measurable unit, I want a specific number that tells me the value of this investment.

Only then is it time to think about cost.

There are two reasons why this way works better:

1. Expected value determines maximum investment.

As fun as it is to dream up the “right” way to solve a problem, the truth is there are a million ways I could do it.

By putting a real number on my expected value, I can put a realistic cap on what I'm willing to invest.

That allows me to focus on solutions that will get me most or all of what I want, within that cost, instead of some “ideal” solution that may cost far more than the value I'm expecting.

2. Cost analysis is an investment in itself.

The lure of building solutions in my head is so attractive that it's easy to begin, even if there turns out to be zero measurable benefit.

It's so easy to run off and begin something that just seems like it would be nice to have.

But by exerting the discipline of calculating the benefit first, I can quickly decide if it's worth the time to workout even a rough sketch of a solution.

Here's the thing:

This isn’t just a story about me.

I see the same “rush to solutions” mindset in the words and actions of my friends, colleagues, and clients.

Maybe, if you pay attention, you'll even see it in yourself.

Don't let it get you.

Put a number on the value first.

And only then allow yourself the fun of planning the investment.

All the best,
A.