Can you imagine being able to quantify any of the options directly related to a decision making process? This is one of those days that I would like to have had the opportunity to create some magic formula to exactly be sure to hit. I suppose many factors influenced my final decision but I risked and lost! In other words and remembering any economics class, I didn’t know how to minimize my opportunity cost.
Understanding as opportunity cost, the value of the next best use that could be obtained from the alternative waived, I realize that this economic concept is a true portrayal of the society in which we live. Apart from the risk and uncertainty associated with any decision making, there are often economic interests, personal feelings, social pressures or other endogenous or exogenous factors which make inevitably reality distorted. Therefore, the difficulty of quantifying different options and the risk aversion level of every human being makes impossible to find a clear guideline to follow… and this is what makes any decision making process so challenging.
In the end we tend to decide considering only the short term, leaving wrong decisions as failures and right decisions as successes. When we lose, we usually surrender and forget that an error can allow us to learn for future attempts, which is applicable not only for personal decisions but also for strategic decisions made by companies or political organizations.
Many examples come to mind. Some of them could result a bit boring for the reader but there are some others I would like to highlight from people like Thomas Edison, who failed about 10 thousand times while trying to develop the focus; Steve Jobs, who after creating Apple, was fired to change the direction of the company in order to follow similar strategies to big companies like Microsoft. He was finally rehired to rescue Apple from what seemed a predictable death; and Colonel Sanders, who was denied by more than 100 times the credit needed to create what is currently known as Kentucky Fried Chicken. In all these cases, if they would have rendered, they wouldn’t have had the opportunity to fulfill their goals and be happy.