Education leaders understand that all circumstances and actions in education include uncertainty and that every decision has an opportunity cost. The opportunity cost might be harmful or disastrous if you make the incorrect decision. I first learn about opportunity cost in a college economics class. This simple thought shifted my perspective on life and how I handled it. Before making important decisions, I constantly assess the opportunity cost, which has never let me down. It can also improve both your personal and professional life.

What does the term “opportunity cost” mean? The result of a squandered chance is an opportunity cost. It is commonly expressed in monetary terms and in terms of time or any other source.

Opportunity Cost in Action

For example, you have a retreat with your leadership team scheduled for Tuesday morning to undertake some strategic planning for the upcoming school year. You must be there as the administrator and must conduct the meeting. However, you receive a call the night before from an affluent alumnus who has decided to contribute $5 million to your district, but he can only meet with you tomorrow. You’ve talked to them for months, and now they’re ready to decide. What are your plans?

Before making a choice, great educational leaders consider the ramifications. Compared to the potential cost of skipping a $5 million donation, the repercussions of ignoring the retreat are insignificant. Your deputy superintendent collaborated with you on the retreat’s specifics, your upcoming year’s objective, and the presentation you planned to give. They may help you organize the retreat while you meet with possible donors. You may always arrange a follow-up meeting to complete things after the retreat, but this contribution is a once-in-a-lifetime opportunity.