Friday, March 1, 2013

The moment of opportunity

There is a tide in the affairs of men.
Which, taken at the flood, leads on to fortune;
Julius Caesar Act 4 

Now in the project business, we might rewrite Shakespeare this way:
There will be opportunities in the lifecycle of projects
Which, taken at their moment, lead on to fortune in the business
Of course, we may only be able to put down an option to hold the right to take the opportunity at a future time, perhaps a little off the flood tide, but nonetheless a good deal.

And, options, as a strategy for opportunity, isn't that hard to understand:

  • The idea is to put a little down now to preserve the right but not the obligation of doing something later. That is the situation with event chains and rolling wave plans.
  • Anything you do or put down might be a throw away if you do not exercise the option. So, your option is sunk cost; it should be a small investment (money or other) compared to the opportunity cost of doing something else.