Have you ever struggled with making a decision? Maybe the stakes were high, or maybe you felt overwhelmed by the amount of information available. To increase our “ win rate” - how often we make the right decision - let’s take a look at a useful tool.
There is a decision making framework popularized by Amazon, which helps you make a decision by defining the type of decision at hand.
In this framework, all decisions can be grouped into one of two types, characterized by the following conditions:
| Size of decision scope | Risk of negative consequence | Easily reversed? |
Type 1 Decisions | typically big | high | no |
Type 2 Decisions | typically small | low | yes |
Type 1 decisions are often called "One Way Doors" - they're big decisions with high risk of negative consequence if we get it wrong. They're not easily reversible and will be difficult to walk back - the same way that a one way door can only be passed through in one direction!
Type 2 decisions are often called "Two Way Doors" - they're smaller decisions with low risk of negative consequence if we get it wrong. They're easily reversed - the same way that you can go back through a two way door the way you came.
How can I use this framework?
To improve your decision making skills, start thinking about the type of decision you need to make. If it’s a Type 1 decision - a One Way Door - this is when more thorough diligence and alignment is needed. Ensure you thoroughly understand the decision, your options, and the benefits and risks of each. Think through second and third order impacts for your options so you understand the ripple effects.
If it’s a Type 2 decision - a Two Way Door - don’t agonize over it. This doesn’t mean you should make a hasty decision just because it can be walked back - review the relevant facts, understand the risks present with each option, and then make a call. With a Two Way Door decision, speed is your friend because it shortens your time to learning. When the consequences of being wrong are low or non-existent, making a wrong decision is often just as good as making the right one in the first place!
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