DECISION MAKING… How I Became Successful
Summary
- To avoid career-damaging mistakes, focus on not making poor decisions rather than just making good ones.
- Even a single bad decision, a Net Zero decision, can negate years of good decisions and dramatically alter the trajectory of your life or business.
- Always assess business leadership; poor leadership, like I experienced with a company operator, can severely damage a company.
- Overpricing services or products can lead to substantial revenue and profit loss, as happened with my company Gym Launch when we cut prices without reducing churn.
- Limit choices to prevent overanalysis and indecision, demonstrated by increasing a portfolio company's sales by simplifying their offers.
- Don't let perfectionism stop you from taking action; accept that every solution will have trade-offs and new problems.
- Develop a clear process for decision-making instead of relying on emotional reactions.
- Separate emotional reactions from practical problems to make rational decisions and prevent overreacting to issues like negative feedback.
- Ask productive, specific questions that guide you to effective solutions and limit overwhelming options.
- Discern the root problems from the symptoms by thoroughly analyzing the situation and considering what changes could resolve the symptoms.
- Test assumptions rigorously to differentiate between opinion and fact, which helps in asking the right questions and finding viable solutions.
- Map out decision options with possible outcomes, weighing the pros and cons, and consider the worst-case scenarios to ensure you can live with them.
- Choose solutions based on their long-term benefits, aiming for outcomes that are positive today, tomorrow, and into the future.
Video
How To Take Action
I would suggest implementing these steps to make better decisions. First, limit choices. Too many options can make it harder to decide, like with the jam example. If you have a business, simplify your offers. It worked for a company we helped by increasing their sales when we reduced their options.
To avoid getting stuck in perfectionism, understand every choice comes with its own set of problems. Choose the problems you're okay with. For example, if you want to start a tech business, be ready for the challenges that come with it, like finding talent or learning new skills. If that seems too hard, maybe start a simpler business.
Next, create a clear process for decision-making. When you face a tough choice, don't let emotions drive you. Ask yourself these questions:
- What good and bad things could happen with this decision?
- Can I live with the worst outcome?
- Will the result be good not just today, but also in the future?
And when things go wrong, like negative feedback, don't make it bigger in your head. Treat it as a practical problem to solve, not an emotional one.
Also, to get to the root of a problem, ask
- Why is this happening?
- What changes can fix this?
- Do I need expert help or more knowledge in this area?
Test your thoughts too. If you think you've tried everything and it's not working, challenge that idea. What haven't you tried? This way, you make sure you're dealing with facts, not just feelings.
Mapping out your choices and their outcomes is a tool you can use right away. Write down your options, the good and bad points, and see if you can handle the worst that could happen. That's how you make smart choices for the long run. I used this method to guide someone at work through their problem, and it really helped them.
So, my advice? Keep things simple, think about the future, and separate facts from feelings. This will help you avoid bad decisions and go for the ones that add value to your life and business over time.
Quotes
"No matter how many good decisions you make, if you make one bad decision it can wipe all the good ones out"
– Leila Hormozi
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"You don't need to learn how to make good decisions, you just need to learn how to avoid the terrible one"
– Leila Hormozi
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"The more options somebody has to choose from, the less likely they are to make a decision"
– Leila Hormozi
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"We're always trading problems"
– Leila Hormozi
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"The fewer dumb decisions we make, the higher quality of life we have"
– Leila Hormozi
