+1 or -1: A decision model you can put in place today.
Every single day, you must make decisions. The decisions you make can be trivial, or they can be life-changing, but there is no running…
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Every single day, you must make decisions. The decisions you make can be trivial or life-changing, but there is no running away from making decisions every day.
We can use complex decision frameworks, but there is no doubt that while you are getting through your day and trying to make decisions that move your life or your business in the right direction, you will only use these if you have an endless supply of spare time.
Let us look at one such complex model to demonstrate: (read on for a simple rule that will help)
1. Analytical Hierarchy Process (AHP)
The Analytical Hierarchy Process (AHP) simplifies complex decisions by breaking them into a hierarchy of goals, criteria, and alternatives. Developed by Thomas L. Saaty, it uses pairwise comparisons to quantify preferences and calculate relative weights. This structured method allows decision-makers to integrate qualitative and quantitative factors, providing a clear and rational basis for making decisions.
I can only hope that you have read past the above.
It is a valuable tool when the right conditions exist, such as when a dedicated project team is solving a complex problem, but people need more time to turn to these models in their lives or their businesses most of the time.
We must find a rule we can use when we do not have the time to go through a complex process. We need a rule that we can use in life and our businesses.
I am writing this assuming that you already have your goals in place, business and otherwise. If you do not have a vision or a goal to work towards, then making decisions is much easier, as demonstrated by the following quote from Alice in Wonderland:
Would you tell me, please, which way I ought to go from here?” “That depends a good deal on where you want to get to,” said the Cat. “I don’t much care where — ” said Alice. “Then it doesn’t matter which way you go,” said the Cat.
Back to the rule, I would like to talk about. +1 or -1. For every decision you make during the day, ask yourself, is this a +1 or -1 when considering the goal you want to reach? That is it.
Should I buy this food? Is it +1 or -1 for my health?
Should I watch Netflix or spend two hours reading a business book to become more knowledgeable? +1 or -1?
Should I invest my money, or should I buy a new car? +1 or -1?
Should I buy this business asset or rent new offices? Which option will be a +1 or -1 for your business in the long term?
Should I hire a CFO for my business or outsource the service? Which option will be a +1, given your long-term strategy?
Each +1 or -1 decision must tie back to a goal or vision you have set. Does it move you towards or away from your goal?
I understand that this rule is very simplistic, but it will help you start framing the issue you are dealing with. It will also help you make quicker decisions when you have to make them on the spot.
It will give you an initial idea of what your gut and your intellect are telling you. From there, you can use the more complex models where applicable and where more time is present.
I hope this simple heuristic can help you evaluate your decisions quicker and better.