E1: The Principle of Quantified Overall Economics
Select actions based on quantified overall economic impact
E2: The Principle of Interconnected Variables
We can’t just change one thing.
E3: The Principle of Quantified Cost of Delay
If you only quantify one thing, quantify the cost of delay
E4: The Principle of Economic Value-Added
The value added by an activity is the change in the economic value of the work product
E5: The Inactivity Principle
Watch the work product, not the worker
E6: The U-Curve Principle
Important trade-offs are likely to have U-curve optimizations
E7: The Imperfection Principle
Even imperfect answers improve decision making
E8: The Principle of Small Decisions
Influence the many small decision
E9: The Principle of Continuous Economic Trade-offs
Economic choices must be made continuously
E10: The First Perishability Principle
Many economic choices are more valuable when made quickly
E11: The Subdivision Principle
Inside every bad choice lies a good choice
E12: The Principle of Early Harvesting
Create systems to harvest the early cheap opportunities
E13: The First Decision Rule Principle
Use decision rules to decentralize economic control
E14: The First Market Principle
Ensure decision makers feel both cost and benefit
E15: The Principle of Optimum Decision Timing
Every decision has its optimum economic timing
E16: The Principle of Marginal Economics
Always compare marginal cost and marginal value
E17: The Sunk Cost Principle
Do not consider money already spent
E18: The Principle of Buying Information
The value of information is its expected economic value
E19: The Insurance Principle
Don’t pay more for insurance than the expected loss
E20: The Newsboy Principle
High probability of failure does not equal bad economics
E21: The Show Me the Money Principle
To influence financial decisions, speak the language of money
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