The Opportunity Cost of Leadership

Every leadership position has a range of potential to impact business outcomes, some positions more than others. Think of that range as the opportunity cost of leadership inherent in each position, i.e. the maximum value achievable by the team if led by the perfect leader. The more effective the leader, the more the business realizes that opportunity cost. The less effective the leader, the more it leaves on the table. The effectiveness of a company’s approach to leadership is the extent it captures the value inherent in each of its leadership positions.


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Written by Dave Bennett

Co-founder and CEO of ECO:LOGIC Engineering.

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Authority vs Leadership

The Gem of my Collection