The Hidden Cost of Unreliability

Early on, I learned that I couldn’t always count on the adults in my life. I adapted by building backup plans.

But backup plans aren’t free. Plan B, C and D are like insurance premiums. Those premiums blunt your “returns.” You’re forced to over-diversify when you can’t trust your primary bet.

Unreliability is a Tax.

When you can’t trust a person or system, you pay an overhead:

  1. The Follow-Up Tax: You have to double-check and micro-manage.
  2. The Padding Tax: You have to sandbag estimates because you expect failure.
  3. The Overhead Tax: You have an “open loop” in your head because you can’t trust the promise.

I pride myself on rolling with punches. You have to. Punches are inevitable.

But you don’t have to tolerate sources of unreliability. You can lower the tax.

Here’s how I do it:

  • Hire reliable people.
  • Cut off unreliable friends.
  • Pay attention to early signs and exit.

Cheap and unreliable is expensive.

Expensive and reliable is cheap.

🚩

Where is unreliability costing you?