In meetings, when someone refers to opportunity costs, attendees pay attention and engage with interest, as a careful assessment can usually make a difference, regardless of endeavor, between good and great. However, since opportunity costs are considerably speculative, the risk of tangential unproductive discussion is higher. 

With women either less comfortable getting to the point fast or being perceived as such (Gender and Modes of Communication, Barbara F. McManus, College of New Rochelle, 1999) w2wlink has developed a concise 5-Point Opportunity Cost Talk-Points Guide from general management and leadership principle to help managers, especially professional women managers and aspiring managers, to lead or contribute in discussing this topic.

First, a review of the definition of opportunity costs: The cost of alternatives that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.  (Investopedia.com, a Forbes Media Company).  An example is a business that buys a fancy office building; it may decide to use the building if the decor is pertinent, or if the decor is excessive for their needs it could use less extravagant offices, lease out the premium pace, profit via monthly cashflow on the difference, or sell it.  Environmentally friendly issues clearly bring up opportunity cost questions.

Gender differences tend to arise in less defined areas such as opportunity costs assessments.  Having a ready set framework to speak from adds a fluidity and a level of professionalism that peers respect and superiors appreciate. What costs generally need to be considered for a thorough opportunity cost review?

w2wlink.com 5-Point Opportunity Cost Talk-Points Guide

Up front monetary costs -  What could the savings from going with the less costly alternative be used for? Would it be better for the business?
                       
Adminstrative costs - Would more planning and administration be needed for one alternative that could be harnessed elsewhere for better business?

Peace of mind costs - Do I feel greater peace of mind knowing that I can rely on a more proven alternative?

Organizational costs - How will the decision affect my team?  Will there be an increase in moral that would inspire motivation that would meaningfully benefit the business? Is there a significant chance of loss of moral that would detract from a benefit another alternative may offer?

Results costs -  How much potential profit will come from doing one alternative over the other?  How much will the decision affect the branding of the business?

For more information on opportunity costs, see Opportunity Cost at the Information Center for Management and Business Administration at netmba.com. 

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