Decision-making is important. But, not all decisions are equal. So it is worthwhile studying how we make decisions. This ensures that we apply the right approach for different types of decisions.
There are two main types of decisions:
The first type is reversible decisions. These decisions can be made quickly, even with limited information. Worse case, if you are wrong, you can roll back the decision and try again without too many problems. It is better to optimize for speed and efficiency than being 100% convinced that you are right.
The second type is irreversible decisions. With these decisions, you should take more care. Seek dissenting opinions, ask for more data, spend more time considering. However, don’t make the mistake of trying to achieve certainty, as this is unlikely to happen very often. If you feel 70% confident, that might well be enough.
So that’s it.
The main pitfalls are spending too much time on decisions that can easily be reversed, and not enough time on decisions that can’t.