{"id":5373,"date":"2025-06-10T18:33:48","date_gmt":"2025-06-10T08:33:48","guid":{"rendered":"https:\/\/murrayslatter.me\/?p=5373"},"modified":"2025-06-11T21:09:03","modified_gmt":"2025-06-11T11:09:03","slug":"opportunity-cost","status":"publish","type":"post","link":"https:\/\/murrayslatter.me\/?p=5373","title":{"rendered":"Opportunity Cost"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Seeing the Hidden \u201cPrice Tag\u201d on Every Choice<\/h2>\n\n\n\n<p><em>\u201cThe most important thing to evaluate when you look at a decision is what you <strong>can\u2019t<\/strong> do if you say yes.\u201d<\/em> \u2013 Charlie Munger<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why Opportunity Cost Belongs in Every Executive\u2019s Toolkit<\/h3>\n\n\n\n<p>Opportunity Cost: Most leaders do a solid job assessing <strong>explicit<\/strong> costs: the dollars, staff hours, or capital tied to a project. Yet the biggest destroyer of value is often <em>implicit<\/em>\u2014the high-return project you never start, the talent you never hire, or the market you never enter because your resources are locked elsewhere. Opportunity cost forces us to ask:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>\u201cWhat am I giving up?\u201d<\/strong> \u2013 the forgone alternative<\/li>\n\n\n\n<li><strong>\u201cIs the next-best option higher-yielding?\u201d<\/strong><\/li>\n\n\n\n<li><strong>\u201cHas the trade-off landscape changed since we last looked?\u201d<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Embedding this lens in daily decision-making sharpens capital allocation, clarifies strategic priorities, and inoculates against \u201cbusy-work\u201d initiatives that feel productive but erode return on effort.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">2. The Core Concept in 90 Seconds<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Scarcity<\/strong> \u2013 Resources (money, time, attention, political capital) are finite.<\/li>\n\n\n\n<li><strong>Choice<\/strong> \u2013 Allocating to <em>A<\/em> means <em>not<\/em> allocating to <em>B, C,<\/em> or <em>D<\/em>.<\/li>\n\n\n\n<li><strong>Opportunity Cost (OC)<\/strong> \u2013 The value of the highest-return option you <em>didn\u2019t<\/em> pursue.<\/li>\n\n\n\n<li><strong>Goal<\/strong> \u2013 Select the option with the greatest <em>net<\/em> benefit <strong>after<\/strong> subtracting OC.<\/li>\n<\/ol>\n\n\n\n<p><strong>Formulaic view<\/strong><\/p>\n\n\n\n<pre class=\"wp-block-preformatted\">textCopyEdit<code>True Net Benefit of Choice A = Direct Benefit of A \u2013 Opportunity Cost of A\n<\/code><\/pre>\n\n\n\n<p>If that number is negative, you should pivot.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">3. Common Blind Spots (and How to Fix Them)<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Blind Spot<\/th><th>Typical Symptom<\/th><th>Fix<\/th><\/tr><\/thead><tbody><tr><td><strong>Sunk-cost fallacy<\/strong><\/td><td>\u201cWe\u2019ve spent $3 M, we can\u2019t walk away now.\u201d<\/td><td>Separate <em>past<\/em> cost from <em>future<\/em> value; hold a \u201ckill-switch\u201d review gate.<\/td><\/tr><tr><td><strong>Illusion of free resources<\/strong><\/td><td>Allocating \u201cspare\u201d team time to low-value tasks.<\/td><td>Treat staff hours as scarce capital; track \u201cfully loaded\u201d cost of attention.<\/td><\/tr><tr><td><strong>Bias toward visible returns<\/strong><\/td><td>Preferring projects with concrete KPIs while ignoring intangible upside (brand, capability).<\/td><td>Force alternative scenarios onto a \u201csingle decision canvas\u201d with both tangible and intangible metrics.<\/td><\/tr><tr><td><strong>Calendar overload<\/strong><\/td><td>Accepting every meeting invite.<\/td><td>Ask: \u201cWhich core objective does this meeting displace?\u201d<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">4. Practising Opportunity Cost: A 5-Step Micro-Framework<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Define the scarce resource.<\/strong><br>Money, time slot, senior-leader attention, data-engineering bandwidth, etc.<\/li>\n\n\n\n<li><strong>List viable alternatives.<\/strong><br><em>At least<\/em> two more than your instinctive favourite\u2014this counteracts fixation.<\/li>\n\n\n\n<li><strong>Estimate Net Present Value (NPV) or qualitative utility for each.<\/strong><br>Use ranges and scenarios to accommodate uncertainty.<\/li>\n\n\n\n<li><strong>Rank &amp; compare.<\/strong><br>Highlight the <em>single<\/em> highest-yield alternative. That number becomes the OC for every other option.<\/li>\n\n\n\n<li><strong>Commit or pivot quickly.<\/strong><br>Decision latency itself carries OC; set a time-boxed deliberation window.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">5. Executive Case Study<\/h3>\n\n\n\n<p><strong>Scenario:<\/strong> A mid-sized construction firm (sounds familiar!) has AU $10 M in free cash flow. Two proposals land on your desk:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Project Alpha<\/strong> \u2013 Build an internal prefabrication facility.\n<ul class=\"wp-block-list\">\n<li>CapEx: AU $8 M<\/li>\n\n\n\n<li>Expected IRR: 16%<\/li>\n\n\n\n<li>Strategic fit: Enhances vertical integration.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Project Beta<\/strong> \u2013 Acquire a specialist AI scheduling start-up.\n<ul class=\"wp-block-list\">\n<li>Purchase price: AU $10 M<\/li>\n\n\n\n<li>Expected IRR: 25%<\/li>\n\n\n\n<li>Strategic fit: Strengthens digital differentiation and reduces program risk.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>Surface view:<\/strong> Alpha looks attractive; 16% beats the firm\u2019s hurdle rate.<br><strong>OC lens:<\/strong> Funding Alpha leaves insufficient cash for Beta, whose 25% IRR &gt; 16%.<br><strong>Decision:<\/strong> Defer Alpha, pursue Beta, continue scouting lower-CapEx prefabrication partnerships instead of ownership.<br><strong>Result:<\/strong> Higher return, faster digital capability, and optionality preserved.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">6. Integrating OC into Organisational Rhythm<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Capital Allocation Council<\/strong> \u2013 Quarterly forum that scores initiatives against a live opportunity-cost benchmark.<\/li>\n\n\n\n<li><strong>Time-Boxed \u201cStop\/Start\/Continue\u201d Reviews<\/strong> \u2013 Encourage teams to cull low-value work streams.<\/li>\n\n\n\n<li><strong>Executive Dashboards<\/strong> \u2013 Track % of budget and leadership hours invested in top-quartile-ROI activities.<\/li>\n\n\n\n<li><strong>Psychological Safety to Kill Projects<\/strong> \u2013 Reward managers for redeploying capital, not just launching projects.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">7. Quick-Fire Questions to Embed the Habit<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>If we had to deploy this resource from scratch today, is this how we\u2019d use it?<\/em><\/li>\n\n\n\n<li><em>Which project in the backlog would we accelerate if this one were cancelled?<\/em><\/li>\n\n\n\n<li><em>What is the minimum viable investment to test the upside before full commitment?<\/em><\/li>\n\n\n\n<li><em>How has our opportunity set changed post-decision (market shifts, new tech, interest rates)?<\/em><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">8. From Insight to Action \u2013 Your 30-Day Challenge<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Audit<\/strong> one recurring meeting and one project for hidden OC\u2014eliminate or redesign at least one.<\/li>\n\n\n\n<li><strong>Build<\/strong> a simple scorecard: <em>Impact, Probability, Cost, Strategic Fit.<\/em> Force-rank your top five initiatives.<\/li>\n\n\n\n<li><strong>Present<\/strong> at the next exec meeting: \u201cHere\u2019s what we\u2019re <em>not<\/em> doing\u2014and why.\u201d Watch how the conversation changes.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">9. Closing Thought<\/h3>\n\n\n\n<p>Opportunity cost is less about spreadsheets and more about <em>mindset<\/em>. It demands intellectual honesty to admit that good ideas can be the enemy of great ones. Adopt it, and you\u2019ll make decisions not just based on what you <em>can<\/em> do, but on what you <em>should<\/em> do to maximise long-run enterprise value.<\/p>\n\n\n\n<p>Missed out on the <a href=\"https:\/\/murrayslatter.me\/?p=5292\">over all series<\/a>?<\/p>\n\n\n\n<p><strong>Murray Slatter<\/strong><\/p>\n\n\n\n<p>Strategy, Growth, and Transformation Consultant: <a href=\"https:\/\/outlook.office.com\/bookwithme\/user\/ffef0aaaf9ce4fa9bc29e062d1cb0d0f@qfactor.com.au?anonymous&amp;ep=bwmEmailSignature\">Book time to meet with me here!<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Or Signup for the Newsletter<\/h2>\n\n\n\n<div class=\"wp-block-leadin-hubspot-form-block\">\n\t\t\t\t\t\t<script>\n\t\t\t\t\t\t\twindow.hsFormsOnReady = window.hsFormsOnReady || [];\n\t\t\t\t\t\t\twindow.hsFormsOnReady.push(()=>{\n\t\t\t\t\t\t\t\thbspt.forms.create({\n\t\t\t\t\t\t\t\t\tportalId: 24391455,\n\t\t\t\t\t\t\t\t\tformId: \"03fd50b1-a049-4bdb-b064-cff39a5f75dd\",\n\t\t\t\t\t\t\t\t\ttarget: \"#hbspt-form-1777335653000-1811096737\",\n\t\t\t\t\t\t\t\t\tregion: \"na1\",\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t})});\n\t\t\t\t\t\t<\/script>\n\t\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1777335653000-1811096737\"><\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Seeing the Hidden \u201cPrice Tag\u201d on Every Choice \u201cThe most important thing to evaluate when you look at a decision is what you can\u2019t do if you say yes.\u201d \u2013 Charlie Munger Why Opportunity Cost Belongs in Every Executive\u2019s Toolkit [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","clearfix"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Opportunity Cost - Murray Slatter<\/title>\n<meta name=\"description\" content=\"Leaders do a solid job assessing explicit costs: staff hours, or capital for a project. Yet the biggest destroyer of value is implicit\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murrayslatter.me\/?p=5373\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opportunity Cost - Murray Slatter\" \/>\n<meta property=\"og:description\" content=\"Leaders do a solid job assessing explicit costs: staff hours, or capital for a project. Yet the biggest destroyer of value is implicit\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murrayslatter.me\/?p=5373\" \/>\n<meta property=\"og:site_name\" content=\"Murray Slatter\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-10T08:33:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-11T11:09:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Opportunity-Cost-1.png\" \/>\n\t<meta property=\"og:image:width\" content=\"894\" \/>\n\t<meta property=\"og:image:height\" content=\"476\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Murray Slatter\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Murray Slatter\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373\"},\"author\":{\"name\":\"Murray Slatter\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\"},\"headline\":\"Opportunity Cost\",\"datePublished\":\"2025-06-10T08:33:48+00:00\",\"dateModified\":\"2025-06-11T11:09:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373\"},\"wordCount\":769,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1\",\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373\",\"url\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373\",\"name\":\"Opportunity Cost - Murray Slatter\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1\",\"datePublished\":\"2025-06-10T08:33:48+00:00\",\"dateModified\":\"2025-06-11T11:09:03+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\"},\"description\":\"Leaders do a solid job assessing explicit costs: staff hours, or capital for a project. Yet the biggest destroyer of value is implicit\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#breadcrumb\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/murrayslatter.me\\\/?p=5373\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#primaryimage\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1\",\"width\":894,\"height\":476},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5373#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/murrayslatter.me\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Opportunity Cost\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#website\",\"url\":\"https:\\\/\\\/murrayslatter.me\\\/\",\"name\":\"Murray Slatter\",\"description\":\"Empowering Good teams to be Great!\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/murrayslatter.me\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\",\"name\":\"Murray Slatter\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"caption\":\"Murray Slatter\"},\"url\":\"https:\\\/\\\/murrayslatter.me\\\/?author=2\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Opportunity Cost - Murray Slatter","description":"Leaders do a solid job assessing explicit costs: staff hours, or capital for a project. Yet the biggest destroyer of value is implicit","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/murrayslatter.me\/?p=5373","og_locale":"en_US","og_type":"article","og_title":"Opportunity Cost - Murray Slatter","og_description":"Leaders do a solid job assessing explicit costs: staff hours, or capital for a project. Yet the biggest destroyer of value is implicit","og_url":"https:\/\/murrayslatter.me\/?p=5373","og_site_name":"Murray Slatter","article_published_time":"2025-06-10T08:33:48+00:00","article_modified_time":"2025-06-11T11:09:03+00:00","og_image":[{"width":894,"height":476,"url":"https:\/\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Opportunity-Cost-1.png","type":"image\/png"}],"author":"Murray Slatter","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Murray Slatter","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/murrayslatter.me\/?p=5373#article","isPartOf":{"@id":"https:\/\/murrayslatter.me\/?p=5373"},"author":{"name":"Murray Slatter","@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5"},"headline":"Opportunity Cost","datePublished":"2025-06-10T08:33:48+00:00","dateModified":"2025-06-11T11:09:03+00:00","mainEntityOfPage":{"@id":"https:\/\/murrayslatter.me\/?p=5373"},"wordCount":769,"commentCount":0,"image":{"@id":"https:\/\/murrayslatter.me\/?p=5373#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1","inLanguage":"en","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/murrayslatter.me\/?p=5373#respond"]}]},{"@type":"WebPage","@id":"https:\/\/murrayslatter.me\/?p=5373","url":"https:\/\/murrayslatter.me\/?p=5373","name":"Opportunity Cost - Murray Slatter","isPartOf":{"@id":"https:\/\/murrayslatter.me\/#website"},"primaryImageOfPage":{"@id":"https:\/\/murrayslatter.me\/?p=5373#primaryimage"},"image":{"@id":"https:\/\/murrayslatter.me\/?p=5373#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1","datePublished":"2025-06-10T08:33:48+00:00","dateModified":"2025-06-11T11:09:03+00:00","author":{"@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5"},"description":"Leaders do a solid job assessing explicit costs: staff hours, or capital for a project. Yet the biggest destroyer of value is implicit","breadcrumb":{"@id":"https:\/\/murrayslatter.me\/?p=5373#breadcrumb"},"inLanguage":"en","potentialAction":[{"@type":"ReadAction","target":["https:\/\/murrayslatter.me\/?p=5373"]}]},{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/murrayslatter.me\/?p=5373#primaryimage","url":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1","contentUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1","width":894,"height":476},{"@type":"BreadcrumbList","@id":"https:\/\/murrayslatter.me\/?p=5373#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/murrayslatter.me\/"},{"@type":"ListItem","position":2,"name":"Opportunity Cost"}]},{"@type":"WebSite","@id":"https:\/\/murrayslatter.me\/#website","url":"https:\/\/murrayslatter.me\/","name":"Murray Slatter","description":"Empowering Good teams to be Great!","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/murrayslatter.me\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en"},{"@type":"Person","@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5","name":"Murray Slatter","image":{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","caption":"Murray Slatter"},"url":"https:\/\/murrayslatter.me\/?author=2"}]}},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Opportunity-Cost-1.png?fit=894%2C476&ssl=1","jetpack-related-posts":[{"id":5617,"url":"https:\/\/murrayslatter.me\/?p=5617","url_meta":{"origin":5373,"position":0},"title":"Cost of Capital","author":"Murray Slatter","date":"June 16, 2025","format":false,"excerpt":"The Investor's Opportunity Cost In the world of corporate finance and investing, one metric sits at the intersection of risk and return: Cost of Capital. It\u2019s not just an accounting concept\u2014it\u2019s a strategic yardstick that shapes investment decisions, capital allocation, and ultimately, the value of a business. Understanding your Cost\u2026","rel":"","context":"In &quot;Master Class&quot;","block_context":{"text":"Master Class","link":"https:\/\/murrayslatter.me\/?cat=17"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cost-of-Capital.png?fit=959%2C594&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cost-of-Capital.png?fit=959%2C594&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cost-of-Capital.png?fit=959%2C594&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cost-of-Capital.png?fit=959%2C594&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5611,"url":"https:\/\/murrayslatter.me\/?p=5611","url_meta":{"origin":5373,"position":1},"title":"Time Value of Money","author":"Murray Slatter","date":"June 16, 2025","format":false,"excerpt":"\u201cA dollar today is worth more than a dollar tomorrow.\u201d This simple phrase underpins one of the most foundational ideas in finance: the Time Value of Money (TVM). While deceptively basic, this principle governs how capital is allocated, how investments are valued, and how strategic decisions are made in boardrooms,\u2026","rel":"","context":"In &quot;Master Class&quot;","block_context":{"text":"Master Class","link":"https:\/\/murrayslatter.me\/?cat=17"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Time-Value-of-Money.jpg?fit=1024%2C683&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Time-Value-of-Money.jpg?fit=1024%2C683&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Time-Value-of-Money.jpg?fit=1024%2C683&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Time-Value-of-Money.jpg?fit=1024%2C683&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":5612,"url":"https:\/\/murrayslatter.me\/?p=5612","url_meta":{"origin":5373,"position":2},"title":"Discounted Cash Flow (DCF)","author":"Murray Slatter","date":"June 16, 2025","format":false,"excerpt":"Valuing the Future in Today\u2019s Dollars In the world of finance, decision-making often hinges on a simple but powerful question: What is this opportunity worth today? The Discounted Cash Flow (DCF) model is the gold standard for answering that question. Whether you're evaluating an investment, buying a business, or prioritizing\u2026","rel":"","context":"In &quot;Master Class&quot;","block_context":{"text":"Master Class","link":"https:\/\/murrayslatter.me\/?cat=17"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/DCF.png?fit=956%2C590&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/DCF.png?fit=956%2C590&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/DCF.png?fit=956%2C590&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/DCF.png?fit=956%2C590&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":2667,"url":"https:\/\/murrayslatter.me\/?p=2667","url_meta":{"origin":5373,"position":3},"title":"#9 of 12: So you want to be a Project Manager","author":"Murray Slatter","date":"January 27, 2024","format":false,"excerpt":"Budgeting and Cost Control Understanding financial management, including budgeting, forecasting, and cost control. As an aspiring project manager, it's important to develop a comprehensive understanding of financial management, including budgeting, forecasting, and cost control. These skills are essential for delivering successful projects and achieving long-term business objectives. Series This blog\u2026","rel":"","context":"In &quot;Project management&quot;","block_context":{"text":"Project management","link":"https:\/\/murrayslatter.me\/?cat=18"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/01\/Slide9.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/01\/Slide9.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/01\/Slide9.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/01\/Slide9.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/01\/Slide9.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":3144,"url":"https:\/\/murrayslatter.me\/?p=3144","url_meta":{"origin":5373,"position":4},"title":"Change Order Management: Navigating Scope Changes in Construction Projects","author":"Murray Slatter","date":"July 25, 2024","format":false,"excerpt":"It shouldn't be, however, Change orders are an inevitable aspect of construction projects, reflecting modifications to the original project scope, including additions, deletions, or other revisions. These changes can arise from various factors such as design alterations, unforeseen site conditions, material availability, or stakeholder requests. Effective change order management is\u2026","rel":"","context":"In &quot;Contract Administrator&quot;","block_context":{"text":"Contract Administrator","link":"https:\/\/murrayslatter.me\/?cat=67"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/07\/contracts-administrator-module.png?fit=461%2C260&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":5381,"url":"https:\/\/murrayslatter.me\/?p=5381","url_meta":{"origin":5373,"position":5},"title":"Comparative Advantage","author":"Murray Slatter","date":"June 10, 2025","format":false,"excerpt":"Making Strategic Trade-offs That Compound Value \u201cIt is not the man who has too little, but the man who craves more, that is poor.\u201d\u2013 Seneca In the world of economics, comparative advantage explains why countries trade and specialize. But in the world of decision-making, it reveals something even more powerful:\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Comparative-Advantage.png?fit=1186%2C793&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Comparative-Advantage.png?fit=1186%2C793&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Comparative-Advantage.png?fit=1186%2C793&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Comparative-Advantage.png?fit=1186%2C793&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Comparative-Advantage.png?fit=1186%2C793&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5373"}],"version-history":[{"count":3,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5373\/revisions"}],"predecessor-version":[{"id":5456,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5373\/revisions\/5456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/media\/5455"}],"wp:attachment":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}