After many years of addressing technical and management challenges, I have intuitively developed a decision-making framework that has become instrumental in tackling the various challenges I encounter as an entrepreneur. The primary goal of this framework is to aid in making decisions that focus on maximizing impact. Although it is useful for business decisions, I believe it also contributes to leading an exceptional life.
It’s pretty simple, based on three sequential questions:
What am I trying to achieve, or which problem am I trying to solve?
What is the worst that can happen if I make this decision?
How easily could I recover from the worst-case scenario?
The first question is the most important. While it may seem obvious, it's common to make decisions that don't directly address the specific issue at hand. Often, we approach situations with preconceived solutions that may deviate from our actual goals. This tendency is especially prevalent in dealing with technical issues.
Then, after deciding which direction to take or what action will potentially solve our issue, it's important to consider the worst that can happen if things don't go according to plan. This step is crucial for weighing the action you're taking. Sometimes, the potential risks are minimal and, even in the event of failure, the consequences would be minor and easily manageable.
Finally, after evaluating the worst-case scenario, it's crucial to consider how one can recover if this scenario materializes. Reflect on what might be lost and how to effectively bounce back. While in many cases recovery can be simpler than anticipated, there are instances where it could be devastating and challenging to reverse.
In the end, the most crucial aspect is to make a decision. I believe that not deciding is often worse than making a choice that may eventually go wrong. You can almost always recover from mistakes and learn something in the process, whereas stagnation leads to no gains and lost time.