People You Like are Good Business

The Modus Cooperandi business plan for 2010 is very simple and very short. We want to work with people we like and respect on projects that are fulfilling. We've learned over the years a (sort of) simple equation:

Variables:

• PYL - People you like
• PYDL - People you dislike
• PROJ - Projects
• CT - Completion Time
• AT - Acquisition Time
• WA - Work to Acquire Project
• T$ - Time it takes to get paid
• A$ - Amount you get paid
• PP - Pain to complete the Project 
• SC - Satisfaction of Completion

Projects with People You Like

PROJ (PYL) = AT + CT + WA + T$ + PP - A$ - SC

versus

Projects with People You Don't Like

PROJ (PYDL) = ATx2 + CTx2 + WA*4 + T$*4 + PP*6 - A$*2 - SC*0

The equations balance the work of acquiring and doing and administering a project. We have found that work with people you don't like is:

• Harder to acquire
• Takes longer to complete
• Takes longer to acquire
• Takes longer to get paid, and
• Are painful to complete

but

• You get paid more

but

• By the time you get the money you have zero satisfaction in the project.

So this incredibly unscientific equation is saying, work is balanced by income and satisfaction.  And we've found that the cost / benefit analysis of working with people we like so far and away outweighs the opportunity costs of making more money with unenjoyable people.

But it gets better. I think there’s a Time Value of Money and a Psychological Value of Money – which I’ll describe in my next post.

Photo by Rsms

Comments

[Jo Jordan]

Why are you costing work rather than valuing gain?