Opportunity-cost framing

Use when

• An option looks good in isolation and you have not compared it to anything.
• Resources are fixed and every yes is a no somewhere else.
• A decision is framed as “should we do this?” rather than “instead of what?”.

Do not use when

• The resource is not actually scarce.
• The alternatives are not available to you, which makes the cost notional.

Inputs required

• The option under consideration
• An honest list of what else the same resource could buy

Procedure

1. 01

   Name the resource

   Money, hours, attention, political capital, or a slot that only holds one thing. Be specific about which is binding.

2. 02

   Name the next best use

   Not the average alternative — the best one you would actually take. This is the real cost.

3. 03

   Restate the question

   Not “is this worth doing?” but “is this better than that?”. The first question almost always answers yes.

4. 04

   Check the reverse

   Ask whether you would switch from the alternative to this option if you were currently holding the alternative. If not, you are being held by the status quo.

5. 05

   Write the trade

   For every yes, write the specific no. If you cannot name it, the trade has not been made.