The New Filter for Making Good Decisions
Episode 742: Show Notes
Every decision we make takes us down a different path, each with its own set of consequences. Decisions aren’t categorically good or bad, right or wrong, but today, we discuss how you can learn to make the best business decisions for YOU! This conversation was sparked by an interesting article that we came across in Forbes that highlighted some of the key points that we have been expressing on the show about goals, outcomes, and living in alignment with our values.
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Don’t Make a Pros and Cons List
While some things do have pros and cons to them, the point that this article makes is that you shouldn’t simply compare the number of pros and cons because each of them will be weighted differently. Therefore, a list isn’t necessarily a helpful way to get to the heart of what will be the best decision for you to make. The other problem with these lists is that they are usually biased toward decisions that we have made internally but haven’t yet admitted to ourselves. You don’t have to justify things like price or value or how you are spending your time!
Develop “Kill Criteria”
It’s very rare that there is a wrong decision to be made in business. There might be actions that are more effective than others, but the less effective ones will still probably teach you something valuable. According to the Forbes article, developing “kill criteria” is a very useful method for making decisions. To establish these criteria, first, answer the following questions: what are the things that you value? How much do you value time? How much do you value money? How much do you value fulfillment in your job? Then, decide what actions are going to cause you to achieve the things you value at a cost that you are willing to bear and kill off the rest!
Don’t Give Into the Sunk-Cost Fallacy
If you’re climbing Mount Everest and you get 300 feet from the summit before you have to turn back because of bad weather, that is not a failure! The same concept applies to business; just because your accomplishments look different or were achieved in a different way from what you expected (or what society expected) them to look like, doesn’t mean you haven’t achieved something worthy of celebration. Let go of those internal expectations and internal pressures and fully accept the fact that success can look like a million different things, and it often comes in forms you don’t expect!
Think Differently About Decisions
We want to challenge you to look at decisions in a different light than you are used to. The approach to goal setting that says you must get there at all costs is hard to let go of, but if this approach is no longer serving you, it’s time to make a change. Try out the unless rule (i.e. set the goal you want to achieve and add an “unless.” For example, “We will stay in this house unless it becomes too financially stressful”). Set clear boundaries, and always run your goals through your values filter!
Quote This
You have to be willing to let go of this norm or expectation around what success is supposed to look like.
Highlights
Don’t Make a Pros and Cons List. [0:05:34]
Develop “Kill Criteria.” [0:09:28]
Don’t Give Into the Sunk-Cost Fallacy. [0:15:02]
Think Differently About Decisions. [0:23:09]
Today’s Guest:
Abagail & Emylee
The Strategy Hour Podcast
The Strategy Hour Podcast is a twice weekly show hosted by Abagail Pumphrey and Emylee Williams, the founders of Boss Project. Join us for semi-ranty biz conversations for service providers looking to ethically grow their agency businesses. Episodes cover everything from lead generation to leadership mindset to team culture and beyond.
Key Topics:
Decision Making, Value, Impact, Quitting, Sunk-Cost Fallacy, Societal Expectations
