Thursday, December 13, 2007

The Option Effect

It is amazing what can happen when you go from one option to two. With one option, you are psychologically bound by the probable realm of possibilities. While you may think that the option is good, you’re probably lacking in perspective. Two options, on the other hand, give you a reference point and almost always lead to a better outcome.

The “option effect” is the name of the game when it comes to everything from deals to relationships. Before I met my wife, I always had a top three list. If one relationship fizzled, I had two more that I was cautiously cultivating and could quickly escalate if I wanted.

When I used to be in the government RFQ business, organizations almost always required at least three bids to run a process, and it was for good reason. There was always at least one foul ball, one stretch, and at least one decent bid.

Every time you decide to do something, whether it a deal or a donut, force yourself to find more than one option and you’ll improve your outcomes dramatically.

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