Use case · C80
Calculate an initiative’s opportunity cost
What value is given up when two initiatives draw on the same scarce capacity?
Direct answer
Opportunity cost adds up the contribution of the best alternative given up, the cost of delay and the value of the options made unavailable.
01Fund now, rephase, reduce scope or preserve capacity for a superior option.
02The rule, the evidence and the next review date stay visible.
How to use this
Move from the question to the deliverable.
What value is given up when two initiatives draw on the same scarce capacity?
Fund now, rephase, reduce scope or preserve capacity for a superior option.
Worked scarce-capacity example
Worked example · SQ-80
Make the best abandoned option visible
The cost of an initiative is not limited to its invoice. When it consumes a scarce skill, it delays or prevents the alternative option that would have created the most value.
Fictitious case: 40 days of marketing ops available and four competing initiatives in the second quarter.
- 01Identify the bottleneck
Measure the non-substitutable resource that prevents simultaneous execution.
- 02Value the options
Estimate adjusted contribution, cost of delay and recoverable value.
- 03Compare
Calculate, for each choice, the best alternative made impossible.
- 04Configure
Split or rephase when a smaller version preserves a superior option.
The dominant combination avoids €110k of regret against the full CRM migration
Each option includes its own cost of delay only once. Regret then compares its net value with the best other feasible option.
Net value = adjusted value − cost of delay; regret = max(0, best alternative net value − selected net value)| Option | Ops days | Adjusted value | Cost of delay | Net value | Best alternative | Regret |
|---|---|---|---|---|---|---|
| Full CRM migration | 38 days | €210k | €96k | €114k | Minimum CRM + ABM · €224k | €110k |
| ABM + onboarding | 36 days | €188k | €18k | €170k | Minimum CRM + ABM · €224k | €54k |
| Minimum CRM + ABM | 39 days | €236k | €12k | €224k | ABM + onboarding · €170k | €0k |
| Onboarding only | 18 days | €92k | €24k | €68k | Minimum CRM + ABM · €224k | €156k |
01The full migration is not a priority: its net value of €114k creates €110k of regret against the best feasible option.
02The minimal CRM version frees enough capacity for ABM and maximises net value at €224k.
03For this winning choice, the best abandoned option is worth €170k: that is its opportunity cost, while its relative regret is nil.
04The calculation requires revisiting the decision if the ABM window or the substitutability of ops days changes.
Fictitious case. Opportunity cost depends on the options that can actually be executed, not on a theoretical list of projects.
Coherence controls
Minimum conditions before validation.
The status, the evidence and the owner must be available for review.
The status, the evidence and the owner must be available for review.
The status, the evidence and the owner must be available for review.
The status, the evidence and the owner must be available for review.
Usable deliverable
Worked scarce-capacity example
Explore the decision further with an interactive control, or start from a structured template to produce your deliverable.