Lawrence @ Fast Revops, 2025-04-20
TLDR: Overanalysis = Missed Opportunities
Three frameworks for rational business decisions with incomplete data.
We summarize 3 genuinely awesome books into short, clear, actionable steps, that you can download, print, stick on the wall and boldly win, where others stress out.
We recommend you to read all three carefully, choose one based on pure chemistry, then get REALLY good at implementing it.
If you are too stressed out to read this article, choose Book #1.
If you think the scientific method is the way, choose Book #2.
If you are more of a mediator than an analyst, choose Book #3.
However you choose, getting good at it will be a game-changer.
How to Make Better Choices in Life and Work - by Chip Heath & Dan Heath
https://www.amazon.com/dp/0307956393/
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Best for situations where:
You’re stuck in a “tunnel vision” choice—only A vs. B—and need fresh options.
You’re making emotionally charged or high‑stake calls (hiring/firing, M&A, big investments).
You know bias is creeping in (anchoring on first idea, overconfidence, confirmation bias).
Best for people who are:
Creative Skeptics: You love brainstorming but tend to default to your favorite option. WRAP’s “widen your options” and “reality‑test” nails your playbook.
Detail‑Oriented Planners: You appreciate structured steps rather than free‑form debate. The four clear WRAP phases give you checkpoints.
Risk‑Aware Optimists: You want to be bold but hate surprises—“prepare to be wrong” resonates with your defensive‑optimism style.
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1. Widen Your Options
Action: Before you pick “Option A vs. B,” force yourself to brainstorm at least three truly different alternatives. For each, write a one‑sentence description.
Mindset: Assume the first idea isn’t the best—cultivate curiosity and creative divergence.
Success check: You end up with ≥3 options that aren’t just tweaks of each other (e.g. “hire a new person,” “outsource,” and “delay the project”), and you can clearly articulate how each differs.
2. Reality‑Test Your Assumptions
Action: Identify your top two assumptions for the leading option. Design a quick experiment or information‑gathering step for each (e.g. a 5‑minute customer survey, a two‑week pilot, or expert interview). Run both tests.
Mindset: Be your own skeptic—actively seek disconfirming evidence rather than cherry‑picking support.
Success check: You’ve gathered at least one data point or insight that challenges your preferred outcome, and you’ve logged it (even if it ultimately reinforces your view).
3. Attain Distance Before Deciding
Action: Use one psychological “distance hack:”
10/10/10 test: Ask “How will I feel about this in 10 minutes? 10 months? 10 years?”
Advisor’s hat: Imagine you’re advising a friend—what would you tell them?
Mindset: Step outside your current emotions and ego—adopt an objective, third‑party perspective.
Success check: You can clearly state a long‑term pros/cons list or your “friend” advice, and it differs from your gut reaction. If it doesn’t, you know your gut was already aligned.
4. Prepare to Be Wrong
Action: Run a pre‑mortem: gather your team (or yourself) and assume the decision has failed spectacularly. Brainstorm all the reasons why. For each major risk, assign a “tripwire” metric or date (e.g. “if monthly users don’t hit 100 by June 1, re‑evaluate”).
Mindset: Embrace defensive optimism—plan for failure so it won’t blindside you.
Success check: You have at least three concrete failure scenarios documented, each paired with a clear trigger or contingency plan.
Making Smarter Decisions When You Don’t Have All the Facts - by Annie Duke
https://www.amazon.com/dp/0735216371
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Best for situations where:
Outcomes hinge on significant uncertainty (market timing, product launches, strategic pivots).
You need to disentangle luck vs. skill (sales quotas, funding rounds, competitive bids).
You’re in a culture that overrewards success and underreports failure—you want a more honest feedback loop.
Best for people who are:
Data‑Hungry Tacticians: You crave numbers and love calibrating your gut with probabilities. Assigning %s speaks your language.
Collaborative Debaters: You thrive on group input and contrarian views—“decision groups” and “devil’s advocate” fuel you.
Growth‑Mindset Learners: You welcome post‑mortems and track your calibration over time. You view every “loss” as a lesson.
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1. Frame the Decision as a Bet
Action: Before acting, write down your choice as a wager: “I’m betting X will happen if I do A.”
Mindset: Treat every choice as an uncertain gamble rather than a sure outcome—embrace ambiguity.
Success check: You’ve clearly articulated the “if …, then …” statement and acknowledge it’s probabilistic, not guaranteed.
2. Assign Probabilities
Action: Estimate your confidence in your bet as a percentage (e.g. “I’m 70% sure A leads to X”).
Mindset: Be honest about uncertainty—avoid 0% or 100% unless truly certain.
Success check: You’ve given yourself a number between 1% and 99% (ideally in 5–10% increments) and can explain the reasoning behind that figure.
3. Gather and Weigh Evidence
Action: List your top three reasons for and against your bet, then seek one disconfirming data point (“Devil’s advocate” evidence).
Mindset: Channel a Bayesian updater—let new info shift your probabilities.
Success check: You’ve identified at least one strong counterevidence and adjusted your confidence up or down by ≥10%.
4. Play “Resulting‑Proof”
Action: Document your process (alternatives considered, data sources, probability) in a shared log or notebook before outcome arrives.
Mindset: Separate outcome from decision quality—good decisions can lose; bad ones can win.
Success check: Your log clearly shows the steps you took, so later reviewers will judge you on your reasoning, not just the result.
5. Use Decision Groups
Action: Involve one or two peers: each states their probability, then you discuss differences and converge on a revised estimate.
Mindset: Value diverse viewpoints—“many minds” beat any single perspective.
Success check: You end up with a group consensus probability that incorporates at least one new insight you hadn’t considered.
6. Debrief and Calibrate
Action: Once the outcome is known, compare result vs. your pre‑stated probability. Rate your calibration: were you over‑ or under‑confident?
Mindset: Treat feedback as a gift—refine your gut’s accuracy over time.
Success check: You track at least five decisions, compute how often outcomes matched your stated confidence, and observe your calibration trend improving.
A Practical Guide to Making Better Decisions - by Hammond, Keeney & Raiffa
https://www.amazon.com/dp/1633691047
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Best for situations where:
Decisions involve multiple, often conflicting objectives (budget vs. speed vs. quality).
You need to justify choices to stakeholders with clear, transparent trade‑offs (board pitches, project prioritization).
You face complex scenarios that benefit from formal structuring (capital allocation, portfolio design, strategic planning).
Best for people who are:
Analytical Architects: You naturally map problems into diagrams, trees, and tables. A consequences matrix is your happy place.
Objective‑Focused Leaders: You hammer on “what matters most” before leaping to solutions—PrOACT’s emphasis on objectives is right up your alley.
Consensus Builders: You need a visible, defensible process to bring teams along and show why you chose one path over another.
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1. Frame the Decision
Action: Write a clear problem statement in one sentence: “I need to decide whether … because ….”
Mindset: Treat the way you frame the problem as malleable—experiment until it captures the true choice you face.
Success check: Your problem statement is specific (who, what, when), actionable (refers to a choice you actually control), and agreed by any stakeholders as the core issue.
2. Clarify Your Objectives
Action: List your fundamental objectives (why you care) and any means objectives (how you’ll get there). For each, attach a simple measure (e.g. “maximize revenue ($)”; “shorten lead time (days)”).
Mindset: Separate ends from means—focus first on what really matters before jumping to solutions.
Success check: You have at least 3–5 objectives, each with a concrete metric, and none of them is simply a restatement of an option (e.g. “hire X” isn’t an objective, but “increase capacity by 20%” is).
3. Generate Creative Alternatives
Action: Brainstorm ≥5 distinct ways to meet your objectives. Push past the obvious—use techniques like role‑storming (what would a CEO or a skeptic propose?), or SCAMPER (Substitute, Combine, Adapt, etc.).
Mindset: Assume the first few ideas aren’t enough—embrace curiosity and divergence.
Success check: You walk away with ≥5 genuinely different alternatives, and can group them into at least two thematic approaches (e.g. “grow internally,” “partner with X,” “outsource to specialist”).
4. Assess Consequences
Action: For each alternative, sketch out its top 3–4 likely outcomes against each objective—best case, worst case, and most likely. Use simple scales or rough numbers.
Mindset: Be both realistic and candid—capture downside as clearly as upside.
Success check: You’ve filled in a mini “consequences table” (can be a 5×4 grid) showing how each option scores on each objective, with no blank cells.
5. Make Trade‑offs and Decide
Action: Look across your consequences table and identify where options diverge most on high‑priority objectives. Use a simple scoring or point‑trading exercise: assign “points” to objectives by importance, then rank options by weighted score.
Mindset: Focus on the objectives that matter most—be willing to sacrifice lower‑priority goals to achieve top ones.
Success check: You end up with a clear “winner” in your weighted scores, and you can explain exactly which trade‑offs you made (e.g. “I chose B over A because I value speed twice as much as cost savings”).
+1. Optional follow‑up:
Consider Risk Tolerance: Rate how much uncertainty you’re comfortable with for your chosen option, and identify any contingency triggers.
Plan Implementation & Monitoring: Draft a brief “next steps” checklist and set one or two metrics to track so you know if you’re on track.