Grove argues that every commitment carries an opportunity cost. Choosing a project, strategy or course of action uses time, attention and resources that could otherwise be directed elsewhere. A decision should therefore be assessed not only by whether the chosen activity is worthwhile, but also by what must be postponed or abandoned as a consequence.

In management, this principle encourages more deliberate prioritisation. Organisations usually face more possible projects than they can pursue effectively, so accepting one initiative may reduce their capacity to support another. Grove’s point is that this trade-off exists even when it is not stated explicitly. Recognising it can improve decisions about workload, investment and strategic focus. Rather than treating commitments independently, managers can compare alternatives and consider whether the expected value of one choice justifies giving up the opportunities associated with another.