Jeff Bezos Says Successful People Make These Two Types Of Decisions

1. Introduction

1.1. A Type 1 decision represents a door you walk through and can’t go back

1.2. A Type 2 decision represents a reversible choice by an individual or smaller groups

2. How To Make Optimal Decisions

2.1. Spend up to 10% of your work week on Type 1 decisions.

2.2. Don’t make Type 1 decisions while feeling angry, hungry, lonely or because you’re tired of the process.

2.3. Make Type 2 decisions relatively quickly by batching them, delegating to a team member or outsourcing to a contractor.

2.4. Rather than letting emotions overwhelm you, learn what you can about the problem.

2.5. Triangulate a big decision by consulting other experts with contrasting views

3. Plan For Unexpected Consequences

3.1. Unexpected consequences often represent Type 2 decisions

3.2. With Type 2 decisions, ask a team member to recommend several solutions before selecting one.

3.3. Evaluate each of them and consider your options

4. Take Responsible Risks With Your Choices

4.1. The biggest returns sometimes come from decisions that go against accepted wisdom.

4.2. Bezos writes, “Given a 10% chance of a 100-times payoff, you should take that bet every time.”

5. Plan For Failures

5.1. Amazon had many expensive failures

5.2. It's important to be bold

5.3. Bezos says "Big winners pay for the many previous experiments."

5.4. Entrepreneurs or executives who embrace their choices learn far more than the people who run away.