Decision-making is a problem we face every day. Whether at work or in life, we need to make the most appropriate decision among various options. However, decision-making is not an easy task. Many people will encounter difficulties and challenges when making decisions, and even pay a heavy price for wrong decisions. So, how do you become a good decision-maker? Here, I share 10 decision-making principles with you, hoping to inspire and help you.
- Asymmetric Return: Good decisions all have the attribute of ‘asymmetric return’, that is, there is a lower limit to the problems and risks caused by wrong decisions, but there is no upper limit to the benefits brought by correct decisions. Such decisions allow us to maximize our benefits and potential with limited resources and information. For example, investing in some innovative and disruptive projects or companies may fail, but if they succeed, you will get huge returns.
- Speed and quality: Large decisions with low degree of reversibility should be collected as much information as possible and made with caution; small decisions that are not very important should be made quickly. It is better to make a mistake than to delay. This can avoid procrastination and missed opportunities caused by over-analysis, as well as regrets and losses caused by imprudence. For example, choosing a career or a partner is a large decision with a low degree of reversibility, which requires more time and energy to consider; while choosing a piece of clothing or a restaurant is a small, less important decision that can be made based on intuition or Like to do it.
- Prevention: The best decision-makers are not those who always make life-or-death decisions, but those who never put themselves in the situation. They move forward by making countless correct small decisions before, just like ‘A good fighter has no great achievements.’ They avoid falling into crises or difficulties by planning, predicting, responding, and adjusting in advance. For example, before the economic crisis comes, we have already taken measures such as reserves, transformation, and cooperation, so we will not be passive or get into trouble.
- Odds of winning: The essence of the best decision is to ‘win first and then fight’. The outcome is already known the moment it is made. They do not make decisions based on luck or guesswork, but on data, analysis, logic, experience, etc. Before they make a decision, they have evaluated various possibilities and outcomes and chosen the option that is best for themselves and their family. For example, before buying a house, you have already examined various aspects of the house, location, price, loan, etc., and chosen the house that best meets your needs and budget.
- Endurance: Whether a decision is radical or conservative does not lie in the content of the decision itself, but in whether you can bear the worst consequences it brings. If you can bear the worst outcome, then you can make more radical decisions; if you cannot bear the worst outcome, then you have to make more conservative decisions. For example, if you have enough funds and confidence, then you can take the risk to start a business or change jobs; if you do not have enough funds and confidence, then you must safely maintain your current job or income.
- Probability: The quality of a decision does not depend on a certain result. The quality of a single result is only a probabilistic expression of the quality of the decision. A good decision may fail due to accident or interference; a bad decision may lead to success due to luck or coincidence. However, this does not mean that we can ignore the quality of decisions, but rather look at decisions from a long-term and big-picture perspective. For example, gambling is a bad decision. Although you may win money, from a probability perspective, you will eventually lose money.
- Simplify: It is best to make fewer decisions that require you to make many more decisions. Each additional decision you make increases the probability of making a wrong decision. We should try to simplify our lives and work and reduce unnecessary choices and variables. We can reduce the number of decisions we need to make by establishing rules, habits, processes, etc. For example, we can set what to wear, what to eat, what to do every morning, etc., so that we don’t have to make these decisions again every day.
- Accept: The most important thing when dealing with a difficult decision is to accept that you are not destined to get a perfect choice. Otherwise the decision is not a dilemma by definition. When we face a decision-making dilemma, we often fall into entanglement and hesitation, hoping to find a solution that will satisfy both ourselves and others. However, such solutions often do not exist or are too expensive. We should understand that the dilemma itself means that we must give up something in order to gain something else. For example, balancing career and family is a typical dilemma.
- Delegation: Good decision-makers delegate all decisions that they do not need to make to others and help them become a better decision-maker. They will not regard themselves as omnipotent or omnipotent people, but will regard themselves as a coordinator or guide. They assign appropriate tasks and responsibilities based on their own and others’ strengths and weaknesses. They will give others enough trust and support, and give timely feedback and suggestions. For example, when managing a team or family, you need to learn to delegate and delegate authority.
- Wait: When there are no good decisions to choose from, you can not make a decision, and then just wait quietly for an opportunity to make a good decision. Sometimes, we encounter decisions that have no obvious advantages or disadvantages, or where we do not have enough information and conditions to make a decision. At this time, we do not have to rush to make a decision, but can choose to postpone the decision and wait for better times and opportunities. This can avoid making wrong decisions due to blindness or impulsiveness, and can also give yourself more time to think and prepare. For example, when facing a career change or starting a business, you can first observe changes in the market and industry and look for more favorable opportunities and partners.
The above are the 10 decision-making principles I have provided for you. I hope they can inspire and help you.
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