Technical Leadership Essentials: Cost vs. Friction — The Hidden Math of Team Economics
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Video Description
A client once told me they were proud of their low development costs. They had the invoices to prove it. But they were measuring only one dimension: what they paid. They'd completely missed the second dimension: friction. This video is about why that matters — and how to do the math correctly.
What you'll learn:
• The two dimensions of team economics: Cost and Friction • Why low cost + high friction is often the most expensive choice • How to identify and measure friction in your organization • The real math: what does a month of delay actually cost you? • When the "cheap" option is secretly costing you millions • How to make the business case for reducing friction
Key insights:
• Every question was a 24-hour round trip. That's the friction tax of a 12-hour timezone gap. • Friction doesn't show up on any invoice. There's no line item for it. So it becomes invisible. • The team was talented. But the feedback loop was so slow that small misalignments became big problems. • You can have low cost and high friction. That combination is often the most expensive choice you can make. • Cash flow constraints are real. But know what you're choosing — don't pretend you're saving money when you're actually spending more.
Companion series: Technical Project Management Essentials (managing work) ► Full Playlist: https://youtube.com/playlist?list=PLGxFXI4dC2sgFyg8GFOuqypgPhFZPalKc
Are you measuring cost but ignoring friction? Like this video if it opened your eyes! Subscribe for practical leadership skills for technical people.
What's your organization's biggest source of friction? Let me know in the comments!
#TeamEconomics #OffshoreDevelopment #TechnicalLeadership #ProjectManagement #EngineeringManager #TechLead #SoftwareDevelopment #DevOps #Friction #CostAnalysis #BusinessStrategy
0:00 Cost vs. Friction: The Hidden Math of Team Economics 0:17 The Client Who Was Proud of Their Costs 0:33 The Problem Nobody Was Measuring 0:57 Two Dimensions, Not One 1:44 What Friction Looks Like 2:36 The Math Nobody Was Doing 2:48 Two Scenarios 3:21 The Missing Variable: Revenue 3:33 The Real Math 3:57 When Do You Break Even? 4:31 Friction Isn't Free 4:46 Why Organizations Miss This 5:21 ⚠️ Common Traps 5:50 How to Evaluate Your Situation 6:31 This Isn't Just About Offshore Teams 7:03 Q: What If We Can't Afford the Low-Friction Option? 7:26 What to Do Monday Morning 8:10 Thanks for Watching
Video Info
- Duration: 8:14
- Published: January 26, 2026
