(Ir)reversible Decisions

Move quickly on low-risk choices and deliberate on high-stakes decisions

1. Introduction

Jeff Bezos, founder of Amazon, has developed a simple yet powerful decision-making model that can help leaders navigate complex choices. This model distinguishes between reversible and irreversible decisions, enabling teams to move quickly on low-risk choices while carefully considering high-stakes options. By adopting this approach, leaders can foster a culture of responsible innovation and life-centered business practices.

2. When to use this tool

This tool is most effective in situations where you need to:

  • Make decisions with varying levels of impact and reversibility;
  • Streamline decision-making processes in fast-paced environments;
  • Balance innovation with responsible business practices;
  • Empower teams to make decisions more efficiently.

3. How to use this tool

1. Categorize the decision

Gather your team and present the decision at hand. Collectively determine whether it's a "two-way door" (reversible) or a "one-way door" (irreversible). For example, launching a small-scale pilot program would be a two-way door, while a major acquisition would be a one-way door.

2. Determine the decision-making process

For two-way door decisions, establish a quick, lightweight process. Assign a small team or individual to make the call within a short timeframe. For one-way door decisions, outline a more thorough process involving deeper analysis and wider consultation.

🔗 Explore the Deep Democracy tool in the Elder craft for insight into how to consult more widely for wiser decisions.

3. Implement the "70% rule"

Encourage decision-makers to act when they have about 70% of the information they think they need. This prevents analysis paralysis while maintaining a reasonable level of confidence. Remind the team that for two-way door decisions, speed often trumps perfection.

4. Practice "disagree and commit"

If there's disagreement on a two-way door decision, use the "disagree and commit" principle. Team members who disagree can voice their concerns but should commit to supporting the decision once it's made. This fosters unity and speeds up the process.

5. Review and learn

Set up regular review sessions to assess the outcomes of decisions made using this model. For two-way door decisions that didn't work out, discuss how to "walk back" through the door and what lessons can be applied to future choices

4. What outcomes to aim for

  • Increased speed: Empower your team to make faster decisions on reversible choices, and better allocate time and resources in decision-making processes.
  • Thorough consideration: Create a culture of thought, research, and care when considering high-stakes decisions or complex issues.
  • Increased innovation: Empower your team to move quickly and experiment more.
  • Team alignment: Running processes this way will get your team on board and more aligned and committed to decisions that are made.

5. Resources and references

This Creation Tool is filed under:
Business

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