I recently learned about a new way of measuring risk and evaluating key decisions.
We all know what ROI measures and why it’s such an effective metric for assessing risk and making decisions.
But have you ever considered the COI, the Cost of Inaction?
What happens if you do nothing? What happens if you allow the comfort and familiarity of the status quo to prevail? What happens when you delay, stall, or wait for that last 20% of information or data to act?
Take, for example, Blockbuster’s COI back in 2000 when they could have purchased Netflix for a mere $50MM. The cost of inaction was ultimately bankruptcy, and Netflix is now valued at $141.9B.
How about a closer-to-home reminder? What’s the cost of not getting a regular physical exam, of not setting aside money every month for an emergency fund or your retirement savings account? What is the cost of inaction when it comes to showing gratitude to someone you work with?
There are times when deliberate inaction or delay is good. Patience can be a virtue, but so is making well-informed, decisive actions.
So the next time you have an important decision, or even a daily habit to keep, ask yourself: What’s not doing this going to cost me…and can I afford it?