27Nov

Why Short-Sighted Decisions Cost the Most

The classic prisoner’s dilemma from game theory: two suspects sit in separate cells. If both stay silent, they get a light sentence. If one betrays the other, the betrayer goes free, and the other gets the full punishment. But if both turn on each other, they both face the harshest sentences.

What drives their decision? Fear. Instead of collaborating to minimize losses, they each try to protect themselves. The result? The worst-case scenario for both sides.

Now, let’s take this situation into the business world. Companies, like the prisoners, often make decisions driven by fear or uncertainty. When fear takes over, rational thinking takes a back seat—we want to act quickly. This is a classic example of the “let’s go with the cheapest option, what could go wrong?” strategy. The answer? Everything can go wrong, and faster than you think.


Why Do We Choose Short-Term Solutions?

Just like in the prisoner’s dilemma, companies are often reluctant to trust others. They think, “Why bring in outside support when I can handle this myself?” or “It’s better to hire one person for now than invest in an entire team—it’s too expensive.” But these choices usually end up costing twice as much in the long run.

Take this story from the distant 1990s: A tech company decided to save money on their IT team. Instead of hiring a permanent group of specialists, they went with a low-cost freelancer. The plan was simple: bring them in, get the job done, pay them, and move on. The problem? Come Monday morning, their system crashed, the freelancer wasn’t answering their phone, and the company was in a digital and reputational black hole.

This is the cost of “playing for time.” Instead of investing in collaboration and security, businesses often pick solutions that seem cheaper at first glance. But cheap often means low quality, and over time, that lack of quality compounds and starts to impact the business. Someone might even say, “Low quality? Sure. But it’s my own low quality, my own copyright.” That kind of mindset won’t change anything—and when the organization fails, competitors will already be ahead.


Don’t Rely on People—Build Systems

This brings us to the key difference. What’s the way out of the prisoner’s dilemma? Instead of taking risks alone, you create a system where you’re protected. Our philosophy? Don’t depend on a single person—build an ecosystem where risks and quality measures are shared.

If one expert gets sick, someone else steps in, and the service continues seamlessly. If a project needs more hands on deck, make sure those resources are always available.


How Does This Work in Practice?

One of our clients needed support for a critical project. Instead of searching for individual specialists, they entrusted our team. When one of their employees resigned mid-project, our team took over their responsibilities. The project was completed successfully, without costing the client more time, money, or stress. Better yet, the client retained all the knowledge and skills internally—a classic win-win.

It’s like choosing between a seasoned pilot who knows every possible scenario and someone who’s only practiced on a simulator. Who do you trust to get you there safely?


Don’t Play Alone—Invest in Strategy

History teaches us that the biggest successes come from long-term thinking. The Romans didn’t build roads for a single war—they built them to last for centuries. The same applies to business. Want to grow your company? Build a foundation that can withstand any storm—whether it’s team turnover, financial crises, or new market challenges.


Time to Reflect

So here’s the final question: Is your business ready for a crisis? If yes, great. If you’re just talking about being prepared but haven’t taken action yet, think about it before it’s too late.