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The Opportunity Cost of Bad Business Decisions

An in-depth look at how dysfunctional behaviors and personalities can negatively impact business decisions, imposing unseen opportunity costs that hinder competitiveness, innovation, and advancement over time. Outlines proactive mitigation tactics for hiring, accountability, and modeling transformative leadership.

THE OPPORTUNITY COST OF BAD BUSINESS DECISIONS,

AND THE PERSONALITIES BEHIND THEM.

With ‘Work’-ers In

Contact

WEB

Austin, TX

Montreal, QC

Toronto, ON

416 678 5523

www.workaletta.com

info@workaletta.com

GUIDE

Guide

Table of Contents

Introduction

The Personality Mix

Moving Past Hidden Opportunity Costs

Hiring Ideal Profiles

Mitigation Tactics

Leveraging Technology

Conclusion and Takeaways

About Workaletta

GUIDE

01.

Introduction

Every decision made in the business world comes with its own set

of trade-offs. Choosing one option often means sacrificing another,

and this is where the concept of opportunity cost comes into play.

Opportunity cost refers to the value of the next best alternative that

is foregone when a decision is made. In business, opportunity cost

is a crucial factor that decision-makers must consider ensuring that

resources are allocated efficiently and effectively.

In a perfect scenario, company bigwigs would constantly nail down

savvy, impartial choices that skyrocket their organization’s growth

and earnings. But let’s face it, we’re far from that utopia. Decision-

making can turn into a real resource drain causing teams to cut cor-

ners or settle on choices with half-baked intel. Welcome to the world

of business decision-making, where sneaky opportunity costs lurk,

threatening to trip up a company’s mojo.

The workplace is no different than any other place where people af-

filiate based on common interests - schools, churches, sports teams,

etc. The key difference is that workplaces have goals that profoundly

impact not just employees but external stakeholders like investors

too. To grasp the inner workings of an organization, you first need

to understand the common behavioral archetypes you’ll encounter

and how they can unintentionally impede or aid progress. Some

may be detail-oriented micro managers who slow decision-making.

Others are “big picture” visionaries who overlook critical flaws. Of

course, many exhibit a blend of strengths and weaknesses. An of-

fice comprises diverse personalities, working styles, and mindsets.

Learning to collaborate across this spectrum is essential, as even

close-knit teams can have blind spots that lead to poor choices.

In this piece, we’re diving deep into the secret pitfalls of the person-

ality types that can derail both large and small efforts in the busi-

ness world, their associated opportunity costs, and how to overcome

these obstacles, including the right hiring mix and tactics to deliver

a killer boost in your company’s overall game.

In this paper, we’ll explore:

$680B

Poor talent

management

decisions cost

$680 billion per

year in

employee

turnover

(Gallup, 2023)

Problematic

Workplace

Personalities

Their Ensuing

Opportunity

Costs

Tactics for

Minimizing Their

Organizational

Impact

25% Of people experience bullying at their workplace.

For some industries, these numbers can be as high as

70%. (mydisabilityjobs.com, 2023)

GUIDE

02.

The

Personality Mix

Undermining talent and morale, the work-

place bully may seem like just another over-

inflated ego on the surface as they belittle

colleagues and subordinates behind barely

closed doors. Yet the opportunity costs as-

sociated with these individuals reveal a de-

structive force that can’t be brushed aside

as a communication style, especially when

once-promising careers and innovators are

silently derailed through their callous manip-

ulation. Skilled at psychological control tac-

tics that exploit vulnerabilities, bullies drive

out truth-tellers, and install a compliant bu-

reaucracy more vested in enabling dysfunc-

tion than protecting shareholder interests.

Impact: Workplace bullies negatively impact

all aspects of organizational performance, in-

cluding retention, innovation, collaboration,

decision-making, and advancing the corpo-

rate mission. Ultimately, the entire organi-

zation suffers the hidden opportunity cost

associated with these individuals as they

dismantle communication channels through

public humiliation and threats that muzzle

objective perspectives and severely constrain

decision-making visibility and agility to the

detriment of organizational advancement.

Cultivating an aura of fear that rewards si-

lence over transparency, bullies drive out

truth-tellers and deter evidence-based de-

bate, leaving subjective snap judgments or

cynical politicking to fill the analytical void.

Bullies

$100k

Workplace bullying can

result in costs as high as

$100K per year per victim.

GUIDE

Chronically Disorganized

Complainers

Perpetually scattered and behind schedule no matter the system, the chronically disorga-

nized breezily juggle competing priorities with no regard for deadlines, leaving teammates

puzzling to decipher current urgency amidst the self-created chaos. Ideas burst forth at

random intervals only to be abandoned half-formed once enthusiasm fades in pursuit of

fresher stimuli as yesterday’s unfinished business languishes unattended. Attempts to cap-

ture institutional knowledge fail when conversations meander purposelessly down endless

rabbit holes.

Impact: Over time, the cumulative toll of unfulfilled commitments and communication gaps

results in responsibilities falling through the cracks, consuming resources better directed

toward innovation. Morale declines amidst unrelenting disruption and re-work. Customer

confidence wavers as service reliability suffers from unpredictable whims overriding coordi-

nation.

Gifted at identifying major and minor flaws, complainers reflexively react to any proposed

solution by instantly spotlighting its shortcomings or potential for failure based on historical

miscues they eagerly catalogue. Incessantly vocalizing worst-case scenarios over measured

discussion of trade-offs leaves complainers perceiving themselves as enlightened truth-tell-

ers surrounded by naive optimists blind to reality’s harsher edges.

Impact: By shooting down suggestions without offering alternatives, complainers condition

teams to avoid surfacing innovations likely to disturb their world view, where problems over-

whelmingly outnumber solutions. Their penchant for dwelling on doomsday scenarios blocks

balanced cost-benefit analysis, distorting perceptions of actual risk and leading to extreme

risk aversion. As complainers cultivate a reflexively critical culture focused on flaws over fix-

ing them, measured debate gives way to cynical sniping that discourages participation or ac-

countability. When polarization emerges as the path of least resistance, decisions get strand-

ed in endless fault-finding rather than constructive progress.

$6,240 Two employees who make $60 an hour

complain for one hour per week equals $6,240 per year

in lost productivity not including associated costs of

how they impact other employees.

(Refreshleadership.com, 2023)

GUIDE

Contrarians

Drama Queens/Kings

Contrarians, by nature, possess a unique ability to constantly question everything. While this

could sometimes lead to innovative and creative solutions, it most often results in frustra-

tion when their skepticism is not balanced with a proper understanding of the context and

potential consequences. In some cases, contrarians may dismiss well-reasoned arguments

simply for the sake of being different, leading teams to adopt suboptimal strategies that fail

to capitalize on available opportunities.

Impact: The opportunity cost associated with contrarians is significant, particularly in fast-

paced and competitive environments. When contrarians hinder the decision-making pro-

cess by refusing to accept the consensus, disagreeing for the sake of disagreeing, valuable

time and resources are wasted. Furthermore, the constant need to disagree with others can

detract from the exploration of genuinely innovative ideas, stunting the growth and prog-

ress of an organization.

Flamboyant and theatrical when expressing even minor opinions, drama queens/kings relish

opportunities to loudly hold court, ensuring all attention focuses squarely on their expand-

ing repertoire of grievances and exaggerated accomplishments. Emotions on full display yet

readily weaponized to silence others, they view deference as their due while considering

moderated tones a personal affront from obvious rivals.

Impact: By placing interpersonal conflict over shared objectives, drama kings/queens condi-

tion teams to tiptoe around their delicate egos lest everyday issues unexpectedly escalate

into breathless accusations. As meetings devolve into overly long airings of perceived slights

and old grudges, focus blurs from executing decisions toward mitigating further explosive

outbursts. These individuals can eat up enormous time from management as they work in-

ternal compliance mechanisms to serve their own flawed perceived view of the world.

$500B 78% percent of employees spend at least 3-6

hours each week dealing with drama queens and kings

costing American companies more than $500 billion

annually.

(Huffpost.com, 2023)

GUIDE

Egomaniacs

Know-it-Alls

Brimming with self-proclaimed bravado, the egomaniac vocally claims personal credit for all

team wins while deflecting accountability for losses onto individuals they view as less essen-

tial than themselves. Skilled at self-promotion, egomaniacs demand the spotlight whether

victories occur because of or in spite of their contributions while dismissing the vital efforts

of those they stepped on in pursuit of inflated status. Attempting debate with egomaniacs

proves fruitless.

Impact: By surrounding themselves with confirmation rather than counsel, egomaniacs in

leadership impair organizational judgment with an onslaught of biased, emotional knee-jerk

decisions fueled by ego rather than wisdom. Once resolved dissent and accountability struc-

tures collapse, stagnation sets in from the rot of misplaced self-belief, corroding efficient

business processes until catastrophe forces an overdue reckoning with reality.

All right let’s face it. We’ve all encountered at least one, or perhaps a couple, maybe even a

handful. For those who haven’t had the pleasure, know-it-alls are colleagues or supervisors

who believe they hold all the essential wisdom to make the finest choices. Typically, they

brush off others’ insights and display unwavering confidence in their grasp of intricate mat-

ters.

Impact: Disregarding diverse perspectives and concepts, Know-it-Alls could miss out on inno-

vative strategies and inventive techniques that might uplift the company. After all, banking

only on a single individual’s decisions may lead to prejudiced and ill-informed choices, poten-

tially putting a dent in the organization’s overall success. Moreover, having a smarty-pants in

the mix can really mess with work morale, making it tough for everyone to collaborate and

causing some serious side-eye between teammates.

85% of Employees are not engaged in the workplace, in

large part due to being dismissed, their input not being

recognized, or their efforts being undermined.

(haiilo.com, 2023)

65% Of employees said micro management had caused

them to make poorer decisions. (Business Solver, 2023)

58% Said it limited their ability to be creative or innova-

tive in their work. (Business Solver, 2023)

60% Of people report having worked for a micro man-

ager in the past. (Accounttemps, 2023)

GUIDE

$5Trillion

Micro management costs U.S.

businesses up to $5 trillion per

year in lost productivity

(Resume Lab 2023)

Fixated on minor details, the micro manager

insists on inserting themselves into even the

most routine decisions to maintain a sense

of control, refusing to empower employees

with autonomy in even the most limited do-

mains. Monitoring work constantly via digital

tracking and demanding needless status up-

dates, micro managers second guess compe-

tent staff out of a misguided belief only they

grasp the bigger picture required to make

sound judgements at a granular level.

Impact: By overriding staff expertise with

contradictory directives focused on imme-

diate workflows rather than institutional

knowledge, micro manager disruption se-

verely constrains departmental productivity

already slowed by awaiting their blessing at

every turn. Stifling once smoothly self-cor-

recting teams thriving on agility and cross-

collaboration, morale and creative friction

plummet as micromanaged employees dis-

engage from constantly defending routine

choices. As staff turnover accelerates, loss of

continuity and mission focus degrades com-

pany adaptiveness and reputation for inno-

vation until sufficient external shocks trigger

emergency succession planning.

Micro managers

GUIDE

Political Players

Short Spanners

Co-workers with sneaky or hidden agendas often manipulate the decision-making process

to serve their personal interests, rather than focusing on what’s best for the company. The

hidden motives of Political Players may be silently sabotaging the decision-making process,

diverting resources in the wrong direction, and causing a ripple effect of negative conse-

quences.

Impact: One of the most glaring repercussions of hidden agendas is the misallocation of re-

sources. Without transparency and a focus on what’s truly best for the company, decisions

may be driven by personal interests rather than sound judgment. This can lead to the pursuit

of projects that haven’t been thoroughly researched or are merely a knee-jerk reaction to

feedback from a select few. The result? Wasted time, money, and effort on endeavors that

may not align with the company’s goals or deliver the desired outcomes.

In the fast-paced world of modern business, shrinking attention spans have become an in-

curable epidemic. Bombarded by endless information and distractions, decision-makers

struggle to keep their eyes on the prize. They are easily captivated by novel concepts yet

just as readily get bored when a concept takes too long to implement or show resuits. Short

spanners breeze through meetings soaking up ideas, but their inability to focus and capture

pertinent details results in work that is sub-par or that lacks the substance needed to drive

results leaving colleagues in their wake struggling to decipher exactly what they were try-

ing to achieve, and in many cases scheduling follow up meetings to review what was already

covered in previous meetings.

Impact: Short Spanners often can be linked to results rooted in rushed choices that lack

proper consideration or research, leaving the company with less-than-stellar results. These

decision-makers may rely on surface-level information, misunderstood information, or make

assumptions without digging deeper and gathering all the necessary data. It’s like they’re

50% Human attention spans shrunk by 50% from

2000 to 2022, GenZ has the lowest attention span at

only 1.3 seconds.

(WyzOwl, 2022)

GUIDE

03.

Moving Past Hidden

Opportunity Costs

Behind each dysfunctional behavior lurks associated opportunity

costs that accumulate like compound interest the longer issues go

unaddressed. While many leaders consider interpersonal friction an

inevitable workplace annoyance, the downstream impacts reveal far

deeper structural and cultural damage.

Every meeting derailed by counterproductive conduct represents

lost time better invested in focused execution. Each skilled employee

driven away through toxicity damages bench strength and continu-

ity. Pervasive distrust impedes transparent communication and in-

formation sharing critical for aligning priorities. Once progress stalls,

the best innovations stall rather than actualizing their potential.

And yet, the most tragic lost opportunity may be transformation it-

self. Static organizations dominated by dysfunctional personalities

rarely self-reflect, often requiring a reality check before considering

change.

That’s why wise leaders respond decisively when these behaviors

emerge rather than tolerating them as status quo. They understand

every poor decision weighs exponentially over time, committing op-

portunity costs that ultimately constrain institutional adaptiveness,

productivity, and advancement. But by upholding accountability

and modeling integrity while providing developmental resources to

help each individual contributor play to their strengths, leaders can

contain much of the fallout – perhaps even transforming saboteurs

into collaborators.

Hidden beneath the surface may lurk opportunity costs from behaviors that, if unaddressed,

can subtly undermine institutional foundations over time. But with accountability and

compassion, leaders can transform them into collaborators.

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