What will that decision cost?

  • Published
  • By Senior Master Sgt. Martin J. Mazurek
  • 2d Dental Squadron Superintendent
BARKSDALE AIR FORCE BASE, La. --  As I was sitting in a college class one evening, the professor discussed the decision-making process in managing government operations. He used the term "opportunity cost." I had heard of cost-benefit analysis, pros and cons and a few other processes for decision making, but I hadn't heard of "opportunity cost." Basically he defined it as the highest valued alternative that must be sacrificed to attain something else. What must be sacrificed would be considered the opportunity cost. As the professor continued on with the lesson, I thought of how this new terminology applied in my life.

First, I thought of how Air Force leaders are faced with opportunity costs every day. They are entrusted with limited resources to meet many competing mission requirements. Money, manpower and time must be effectively applied to sustain the nation's warfighting capabilities. By weighing choices against opportunity costs these critical assets are used to ensure air and space dominance. Failure to consider the opportunity costs can translate into unnecessary loss of life, loss of air and space platforms, degraded mission effectiveness and possible compromise of our nation's security. Wow!

Being a part of the worlds greatest Air Force has huge responsibilities and difficult opportunity cost decisions for all levels of leadership. I thought of decisions I had to make like taking advantage of training classes to develop my Airmen. While the short-term opportunity cost may be temporarily reduced access to dental appointments, the long-term benefit for operations mean increased team capabilities and the warriors it serves.

As the professor elaborated, I realized I was bombarded with opportunity cost decisions.

I considered the effort required to be competitive for promotion to the next level of leadership. By taking time to study promotion materials, complete professional military education and being actively involved in organizational activities, I'm developing myself for promotion to the next level of leadership. The opportunity cost associated with these actions would be less time for family or hobbies, at least until my goal has been reached.

I thought about off-duty education. Getting a college degree opens doors for promotion and duty positions as well as improving prospects for post-Air Force earnings. With tuition assistance at 100 percent (for enlisted) it's easy to see how economical the Air Force makes a college education. This saves families thousands of dollars and is an amazing benefit many wouldn't have had otherwise.

One glance at the basic pay scale reflects the value the Air Force puts on education: an airman basic with a high school diploma earns $1,340 a month while a second lieutenant with a bachelor's degree earns $2,543 per month. Multiply the earning power of the lieutenant versus the Airman over a lifetime and the difference is staggering.

Speaking of saving money, by putting aside cash for down payments on larger purchases like a home or automobile, I reduce loan amounts and consequently the monthly payments. Additionally, smaller loans can result in reduced interest costs saving my family avoidable expenses. Because I put aside money now for the family's trip to Disney World, we go worry free. It's already paid for!

A side bonus to saving for the future is less stress--I manage my financial obligations, they don't manage me. There are obvious opportunity costs for living within the family budget and saving money for the future. This means we don't go out for dinner every weekend, we don't get a new truck loan every year, we don't have a big screen TV in every room and we don't have a driveway full of ATV's. We don't have a mailbox full of bills either.

As the professor wrapped up the lesson, I vowed to make "opportunity cost" a part of my decision-making process. I thought of how great it is to live in a country that affords me the freedom to make my own decisions. By making carefully weighed choices I can accomplish the mission, get ahead in the Air Force and provide a rewarding life for my family. By thinking in terms of opportunity costs I'm able underscore the impact of a decision. I recommend the next time you are faced with a decision at the shop or at home, ask yourself, "What will that decision cost?"