ID-668-Alfredo Lozano

Q: How do you know when you start over analyzing? How do you know you’re doing it? How do you catch yourself?
A: There’s probably a difference between how much time you should spend depending on the decision. Do you have an example?
Q: Looking at three proposals of IT companies. I’ve got three proposals they’ve been sitting on my desk for two, three months already. I reviewed them and I haven’t touched them since then. I know I have to do it.
A: What’s the downside? What’s the upside? What’s it costing you to wait? What’s it costing you to not make that decision? What’s the IT contract supposed to do for you? There’s only one reason to have a server and that is? To make more money. To be, do or have something. To be more efficient, to have a more efficient operation so you can do things that make you more money. What is not having the server costing you?
Q: I’ve got a server but I’ve got to replace it. It could potentially cost me money if it goes down anytime soon. It would cost me $10,000 to $15,000 of production.
A: So if the server goes down it could cost you $10,000. What do you think are the likelihood that the servers going to go down in the next ninety days?
Q: It already happened. It cost $10,000 to fix it the last time it went down.
A: So what do you think is the likely hood, one out of a hundred percent? Is it a hundred percent? No, you could get lucky. Is it zero percent? Probably not, but you could get lucky. What’s the percent that the server could go down again?
Q: Fifty percent.
A: Fifty percent. So it’s going to cost you $5,000. You’re taking a $5,000 gamble on it going down. What’s it going to cost you, the highs and the lows of the contract? What’s the difference?
Q: $4,000 to $6,000
A: So between $4,000 to $6,000 of the contracts and is there a difference between the qualities, the reliability, is one company more reputable, is one company more efficient? Do you like working with one company better or are they all sort of the same?
Q: They’re all sort of the same.
A: Okay so pick the most expensive one, make the decision, and move on. I didn’t answer the question you asked. The question you asked was how do you avoid going into paralysis analysis. I gave you an example of an exercise. I gave an example of a skill of decision-making.