A good decision starts with understanding all the possibilities. Take the time to identify every viable option, even those that might not seem obvious at first. Are there alternative paths you haven’t considered? Expanding your perspective ensures you’re not missing a potentially better choice and sets the stage for a well-rounded evaluation.

Example: The Missed Opportunity in Product Development

Imagine a company planning to launch a new product. The team focuses on two obvious options: improving their current product or launching a brand-new one. Both options seem promising, and the team begins debating which path to take.

However, a broader perspective reveals a third option: partnering with a complementary brand to co-create a product. This possibility wasn’t immediately obvious because it required stepping outside the company’s usual practices. Upon further exploration, the partnership idea proves to be the most lucrative. It reduces costs, accelerates the timeline, and provides access to a larger customer base.

By taking the time to identify every viable option—beyond the most obvious—the company avoids missing a better opportunity, setting the stage for a more impactful and innovative decision. This highlights the importance of expanding your perspective before deciding.

Start by evaluating the immediate and future effects of each option. Does this choice bring high or low impact in the short term? How does it shape your long-term goals? Understanding these dynamics will guide your priorities.

When data is available, leverage it to quantify potential outcomes and add objectivity to your analysis. Data provides clarity, reduces uncertainty, and simplifies the decision-making process by offering measurable insights. However, in the absence of sufficient data, trust your judgment and intuition to fill the gaps. Combining measurable evidence with strategic thinking ensures balanced and effective impact estimation.

Visualize the Domino Effect

Look beyond the first decision and anticipate its ripple effects. What are the cascading consequences of this choice? Use clear criteria like cost, time, quality, and resources to assess how these effects align with your goals.

Why This Option? Why Not?

Reflect on the rationale behind each choice. Why does it make sense? Why might it not? Challenging your assumptions ensures a balanced evaluation and sharpens your focus on the best path forward.

Regret: What Would You Miss?

Consider what you might regret not choosing. This perspective can uncover the options with the most meaningful outcomes and align your decision with what truly matters.

When making decisions, it’s crucial to consider how much effort it would take to reverse them if needed. By understanding reversibility, you ensure that energy and time are spent wisely—reserving deliberation for truly high-stakes choices and moving swiftly on decisions that allow flexibility and adaptation.

Type 1 Decisions: One-Way Doors

Some choices are Type 1 decisions, often referred to as “one-way doors.” These are consequential and irreversible or nearly irreversible. Once you make the decision and step through, there’s no easy way to return. These decisions require methodical, deliberate thought, consultation, and careful planning to ensure the right course of action.

"One-way door decisions demand precision. Once you step through, there’s no turning back—so plan wisely."

Type 2 Decisions: Two-Way Doors

In contrast, most decisions fall into the Type 2 category, or “two-way doors.” These are reversible and low-risk. If the outcome isn’t ideal, you can pivot or undo the decision without significant consequences. Type 2 decisions should be made quickly and by small, empowered teams to maintain speed and agility.

As organizations grow, they often treat too many decisions as Type 1, applying heavy, slow processes to situations that don’t warrant it. This tendency stifles creativity, slows innovation, and increases risk aversion. To stay inventive and competitive, leaders must learn to differentiate between the two types of decisions and act accordingly.

"Think Slow, Act Sure"

When dealing with high-impact decisions that are irreversible or extremely difficult to reverse, the key is to approach them with deliberate care. These are the choices that require thorough analysis, stakeholder input, and alignment with long-term goals. Take your time to gather all necessary information and weigh it carefully.

The process here is methodical: consider various scenarios, consult experts where needed, and ensure that the decision is aligned with your broader strategy. Avoid rushing; instead, use this time to build confidence and clarity in the path you choose.

Once the decision is made, act decisively. Commitment at this stage is crucial because hesitation can undermine execution.

"Act Fast, Adjust Later"

For high-impact decisions that are reversible, speed becomes your greatest asset. These decisions allow for flexibility, so rather than waiting for all the information, act when you have about 40-70% of the data. Trust your intuition to fill the gaps and focus on testing the decision through action.

This approach prioritizes agility and adaptability. By moving quickly, you maintain momentum and foster a culture of experimentation. The focus shifts to learning and iterating—adjusting the decision as outcomes become clearer.

While these decisions carry weight, their reversibility means the cost of being wrong is far less than the cost of being slow.

"Decide and Move On"

For decisions with low stakes, whether reversible or not, the priority is efficiency. These choices don’t warrant extensive analysis or deliberation. Instead, make them quickly and move forward.

A “good enough” approach works best here—trust your instincts and avoid overthinking. If the decision turns out suboptimal, the low stakes mean the consequences are minimal. Delegating these decisions can also free up your time and energy for higher-impact choices.

These might include routine tasks like scheduling meetings, approving minor expenses, or making operational adjustments. Overanalyzing such decisions only leads to wasted effort, so the focus should always be on speed and simplicity.

"Disagree and Commit"

The best way to make good decisions is when everyone agrees, fostering unity and shared purpose. However, in reality, achieving unanimous consensus isn’t always possible. As a leader, it’s your responsibility to move forward confidently when alignment isn’t fully reached. Use the principle of "disagree and commit" to ensure progress. When faced with differing opinions, ask, “Will you gamble with me on this? Disagree and commit?” This approach saves time and ensures alignment in action, even without unanimous agreement.

If team members have completely different goals or views, address it early. Identify these issues quickly and involve the right people to resolve them. Long debates or endless meetings often result in decisions made by whoever argues the longest, which wastes time and energy.

By building commitment and resolving disagreements quickly, teams stay energized, focused, and aligned, ensuring decisions are carried out effectively and with a shared goal.