Sunday, December 8, 2024

Bezos: 2 types of decisions

 


๐—›๐—ผ๐˜„ ๐—ฐ๐—ฎ๐—ป ๐˜†๐—ผ๐˜‚ ๐—ถ๐—บ๐—ฝ๐—ฟ๐—ผ๐˜ƒ๐—ฒ ๐˜†๐—ผ๐˜‚๐—ฟ ๐—ฑ๐—ฒ๐—ฐ๐—ถ๐˜€๐—ถ๐—ผ๐—ป-๐—บ๐—ฎ๐—ธ๐—ถ๐—ป๐—ด? In a 2015 letter to stakeholders, Jeff Bezos classified decisions into two types: ๐Ÿญ. ๐—ข๐—ป๐—ฒ-๐˜„๐—ฎ๐˜† ๐—ฑ๐—ผ๐—ผ๐—ฟ๐˜€ (๐—ง๐˜†๐—ฝ๐—ฒ ๐Ÿญ ๐—ฑ๐—ฒ๐—ฐ๐—ถ๐˜€๐—ถ๐—ผ๐—ป๐˜€) ๐Ÿšช. These are decisions that are impossible or very costly to reverse. Examples include mergers, significant investments, or strategic shifts. With this decision, we must proceed carefully and analyze it properly. ๐Ÿฎ. ๐—ง๐˜„๐—ผ-๐˜„๐—ฎ๐˜† ๐—ฑ๐—ผ๐—ผ๐—ฟ๐˜€ (๐—ง๐˜†๐—ฝ๐—ฒ ๐Ÿฎ ๐—ฑ๐—ฒ๐—ฐ๐—ถ๐˜€๐—ถ๐—ผ๐—ป๐˜€) โ†”๏ธ. These decisions are easy to reverse and allow us to experiment quickly. This category includes experiments, minor process changes, or small product features. What usually happens is that we get stuck in large discussions about such decisions, which leads to slow progress and stagnation. How we can proceed with decision-making properly is to ask ourselves, "๐˜๐˜ด ๐˜ต๐˜ฉ๐˜ช๐˜ด ๐˜ฅ๐˜ฆ๐˜ค๐˜ช๐˜ด๐˜ช๐˜ฐ๐˜ฏ ๐˜ณ๐˜ฆ๐˜ท๐˜ฆ๐˜ณ๐˜ด๐˜ช๐˜ฃ๐˜ญ๐˜ฆ" If yes, we should proceed fast and implement it with 70% of the desired information we have. We don't want to have a one-size-fits-all decision-making process but the opportunity to know which decisions we should spend more time on and which ones should be fast to make. By fostering a "Day 1" culture, companies can remain competitive, innovative, and responsive to customer needs. This process allows teams closest to the information to act quickly. ๐—ง๐—ฟ๐˜‚๐˜€๐˜๐—ถ๐—ป๐—ด ๐—ฒ๐—บ๐—ฝ๐—น๐—ผ๐˜†๐—ฒ๐—ฒ๐˜€ ๐˜๐—ผ ๐—บ๐—ฎ๐—ธ๐—ฒ ๐—ง๐˜†๐—ฝ๐—ฒ ๐Ÿฎ ๐—ฑ๐—ฒ๐—ฐ๐—ถ๐˜€๐—ถ๐—ผ๐—ป๐˜€ ๐—ฒ๐—ป๐—ฐ๐—ผ๐˜‚๐—ฟ๐—ฎ๐—ด๐—ฒ๐˜€ ๐—ผ๐˜„๐—ป๐—ฒ๐—ฟ๐˜€๐—ต๐—ถ๐—ฝ ๐—ฎ๐—ป๐—ฑ ๐—ฎ๐—ฐ๐—ฐ๐—ฒ๐—น๐—ฒ๐—ฟ๐—ฎ๐˜๐—ฒ๐˜€ ๐—ฝ๐—ฟ๐—ผ๐—ด๐—ฟ๐—ฒ๐˜€๐˜€. Remember that not every experiment will succeed, but each offers valuable lessons. A culture that views failure as an important step to innovation will have a bright future.


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