Making Business Decisions

Source: Business Insider, Apr 2017

“You have to somehow make high-quality, high-velocity decisions. Easy for start-ups and very challenging for large organizations,” he writes.

So he outlined a couple of steps for that.

1. Learn to work with just enough data, aiming for most of what you need (70%) instead of gunning for near certainty (90%).

2. Get comfortable with uncertainty by staying flexible after the decision is made. “Many decisions are reversible, two-way doors,” he writes. And for those decisions that can be easily undone use “a light-weight process.” You can tell if it’s a light-weight decision by answering the question: “So what if you’re wrong?” he writes.

3. Instead of focusing on avoiding mistakes by making perfect decisions, become a master of “quickly recognizing and correcting bad decisions. If you’re good at course correcting, being wrong may be less costly than you think, whereas being slow is going to be expensive for sure.”

4. Finally, for the biggies, those decisions that are not reversible or that have a big impact on customers, employees or partners, turn the traditional idea of buy-in/approval on its head. Go with “disagree and commit.

“If you have conviction on a particular direction even though there’s no consensus, it’s helpful to say, ‘Look, I know we disagree on this but will you gamble with me on it? Disagree and commit?’” Bezos writes.

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