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What The Experiences Of Amazon’s Jeff Bezos Can Teach You About Making Decisions
By Mikelle Leow, 26 Sep 2017
Image via James Duncan Davidson (Creative Commons 2.0)
Jeff Bezos was 30 during the rise of the internet. While it’s not as dominant as it is today, he noticed—at the time—that its usage had increased by 2,300% each year.
Wanting a slice of the pie, Bezos promptly thought up a list of 20 products to sell on the internet. He ended up specializing in the sale of books, noting their global demand and low cost.
Once a modest bookstore, Amazon has impressively evolved into the world’s leading e-retailer. Understandably, it did not come without its challenges during the climb.
In an article on Medium, writer Zat Rana pens down three life lessons you can learn from Amazon’s CEO that can direct you to making smarter decisions.
Essentially, one should know how to distinguish between high and low impact decisions. It’s tempting to judge the importance of problems based on random timing and your emotional state. Even if the decision can wait, it’s human nature to feel responsible for tackling it there and then.
However, Jeff Bezos says how and when you respond to these circumstances matter. In a 2015 letter to Amazon shareholders, he describes the differences between Type 1 and Type 2 decisions.
“Some decisions are consequential and irreversible or nearly irreversible—one-way doors—and these decisions must be made methodically, carefully, slowly, with great deliberation and consultation. If you walk through and don’t like what you see on the other side, you can’t get back to where you were before. We can call these Type 1 decisions.”
“But most decisions aren’t like that—they are changeable, reversible—they’re two-way doors. If you’ve made a suboptimal Type 2 decision, you don’t have to live with the consequences for that long. You can reopen the door and go back through. Type 2 decisions can and should be made quickly by high judgment individuals or small groups.”
Amazon lets its teams handle Type 2 decisions. Meanwhile, the people who are higher up take care of Type 1 decisions.
Most of your time should be spent focusing on Type 1 decisions. Save Type 2 decisions for later, along with less critical choices.
Head over to the full article on Medium for two more tips.
[via Medium, cover image via James Duncan Davidson (Creative Commons 2.0)]
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