Proportional Decision Making

The energy spent making a decision should be proportional to the consequences. The larger the consequences, the more energy should go into making the decision. The smaller the consequences, the less energy should go into them.

While this is akin to Amazon’s type 1, type 2 decisions (trap door vs two-way door), proportional decision making describes a continuum which better matches the variety of decisions we see in reality (or at least I think so).

What does this mean? We should be quick to make decisions that are inconsequential to avoid bike shedding. We should be rigorous and scruntinize decisions that deeply effect our interests. Mixing up the two would clearly be bad.

From Dharmesh Shah on Lenny’s Podcast.

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