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Embracing actions that are harder in the short-term—like paying above-market wages or sending customers to a competitor for a better price—builds a foundation of trust that creates easier, more prosperous long-term outcomes for the business.

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For difficult decisions, ask the simple question: "What does right look like?" and then do that. This framework simplifies complexity. While doing the right thing can be harder or more expensive in the short term, it consistently leads to better outcomes in the long run.

Prioritize sustainable, long-term growth and value creation over immediate, expedient gains that could damage the business's future. This philosophy guides decisions from product development to strategic planning, ensuring the company builds a lasting competitive advantage instead of chasing fleeting wins.

Frame actions through the lens of a "culture bank." Principled decisions that involve sacrifice are deposits that build trust. Greedy, short-term moves are withdrawals. The leadership rule is to *only* make intentional deposits, as accidental withdrawals (mistakes) are unavoidable.

Counterintuitively, paying employees significantly more than the market rate can be more profitable. It attracts A-players and changes the dynamic from a zero-sum negotiation to a collaborative effort to grow the entire business. This fosters better relationships and disproportionately larger outcomes where everyone wins.

Most leaders try to avoid pain, which limits potential. Instead of trying to protect from all downsides, identify the upsides you want and consciously accept the specific criticisms and trade-offs that come with that path.

Against his company's wishes, Kroc would tell restaurant owners to stock up on paper cups before a price increase. This prioritized the long-term relationship and built immense trust, proving he was on their side. It's a powerful lesson in choosing relationships over short-term transactional wins.

A business decision aims to gamify and optimize a specific outcome. A principle decision is based on core values, made without knowing the outcome, to be remembered favorably regardless of the result. Sticking to principles may mean losing a short-term battle but ultimately wins the war by building trust.

Generosity towards employees and customers is more than just good ethics; it's a strategic move in the iterated game of business. It signals your intent to cooperate, which encourages reciprocal cooperation from others. This builds trust and leads to superior long-term outcomes versus a defect-first approach.

Committing to principles like quality or safety, even when costly, builds immense trust with customers and employees. This "harder" path ultimately makes business "easier" through higher loyalty, lower acquisition costs, and better alignment, creating an underrated asset.

Costco intentionally makes short-term, ROI-negative decisions like capping markups at 14%. This 'harder is easier' strategy avoids the addiction to easy profits and instead builds trustworthiness, which it views as its most valuable, though often unaccounted for, financial asset.