Gain and loss

Many a time observers and the public reach conclusions on a person’s (especially leaders and politicians) decisions and actions on a particular issue without giving due consideration to the factors that may have been at play. Without any empathy.

I read a story the other day that illustrates the point. The controller of a leading newsweekly magazine noticed a “hockey stick” rise in miscellaneous expenses for his company in September. He checked the data for the past few years and, sure enough, the pattern repeated. The situation was important enough to bring to the attention of the chairman.

“What’s causing the problem?” asked the chairman. “Well, it appears that in September, all our reporters, journalists, columnists, editors, and researchers are providing their children with school supplies for the coming term.” The chairman thought about the situation and said, “Make sure we get the best quality.”

Obviously, what the company stood to gain was a decrease in costs. Not so obvious, what the company stood to lose was the goodwill of the employees. The chairman wasn’t willing to trade the morale of the employees for the cost saving; what he stood to gain wasn’t worth what he stood to lose.