Sure, you did the thing for the lowest price, but what did that cost you?
The hidden cost
We Kiwis tend to do things on the smell of an oily rag. That’s probably due to generations of having to make do with what was at hand.
For some things, that’s fine, but occasionally it has some pretty gnarly unintended consequences.
While I waited for my ideal fridge to arrive in the country, I had this bar fridge that I bought a while back.
Appliances have to display an energy rating label by law. The manufacturer gets to decide what the label is made from.
As you can see, this label tore easily, and left lots of sticky residue behind.
The manufacturer could have paid extra for label material and adhesive that would allow for quick and easy removal.
Yep, that would mean a cent or two less profit per unit, but a positive experience for the end user (who is responsible for the manufacturer’s ability to make that profit in the first place!)
After ten frustrating minutes spent removing the sticker and residue, I had pretty negative feelings towards the manufacturer. Not necessarily a good outcome if they want repeat customers.
The difference between cost and value
I see this at play in organisations when decisions are made about staff training and development. The focus is on on the cost per person, not the value delivered per person.
Any fool can throw together a training plan and whack out a few workshops.
But unless the training sticks as firmly as this energy rating label, you might as well just have set that money on fire.
I design training programmes and workshops with an eye on what will be the “stickiest” way for participants to experience and learn the principles, models, and tools. Because that’s what delivers ongoing value to each person, and the organisation as a whole.
