Want To Make Decisions Faster? Here Are Jeff Bezos’s 2 Rules For Decision Making
Jeff Bezos has a process for making decisions. He asks if a decision is a one-way door or a two-way door.
What’s so great about this principle is that it provide guidance on how much deliberation should go into a decision.
It allows you to make certain decisions much more quickly than you normally would.
Lets dive in.
Rule #1: One Way Doors
One way doors are decisions that are not reversible. Once you decide, you either can’t change course, or it would be expensive (or time consuming) to do so.
Bezos calls these “Type 1 Decisions”.
Examples might be:
- Buying a house
- Getting married
- Selling your company
These decisions require you to slow down. Analyze and look to get more information.
With Type 1 Decisions, you want to make sure you aren’t making a choice you’ll regret later, since there is practically no turning back.
That said, avoid analysis paralysis. Look to get just enough information. If you wait to get ALL information, you’ll never make a selection.
Rule #2: Two Way Doors
Two way doors are decisions that ARE reversible. You can change course fairly inexpensively and/or quickly.
Bezos calls these “Type 2 Decisions”.
Examples might be:
- Buying a different brand of cereal at the grocery store
- Learning a new skill
- Changing the price on an offering
How often do you buy a new house vs buy cereal at the grocery store?
Turns out most decisions are more reversible than we realize. But we often treat most choices like Type 1 Decisions, when they aren’t.
You learn most when taking action. And since Type 2 Decisions can easy be reversed, take action, learn, and adjust course when necessary.
Fast decision making is often a competitive advantage, so when you can afford to decide faster (ie: the decision is reversible) speed up and learn along the way.
A good way to summarize the approach for Type 1 and Type 2 Decisions:
- Type 1 Decisions: Ready, Aim, Fire
- Type 2 Decisions: Ready, Fire, Aim