Better Decisions: 5 Simple Frameworks for Busy People

Making decisions with intent is a critical component of feeling fulfilled and satisfied with our work and life choices. It’s so important to career success, that at Uvaro, the ability to decide with intent is one of the core competencies we measure across our entire team.

Career Success: experiencing financial health and work you enjoy, while feeling fulfilled in your peer community and life choices.

However, it's hard to feel fulfilled in your life choices when decision-making can feels overwhelming. This is especially for busy people who have to juggle many competing priorities and have limited time. This is where simple decision-making frameworks come in handy.

Simple decision-making frameworks are easy-to-use tools that help us evaluate options and make choices quickly and effectively. They simplify the decision-making process and help us cut through the noise to focus on what really matters. This makes them particularly helpful for busy people who don't have the luxury of spending hours analyzing every decision they need to make.

In this post, we'll explore 5 simple decision-making frameworks that I've found helpful in making better decisions. Each framework has its unique strengths and can be applied to different types of decisions, and my hope is that these frameworks help others as much as they've helped me.

Decision Framework #1: 80/20 Rule

The 80/20 rule is also known as the Pareto Principle. The rule’s namesake, economist and sociologist Vilfredo Pareto, observed that approximately 80% of Italy's land was owned by 20% of the population. As a decision-making framework, it suggests that 80% of the results come from 20% of the causes. In other words, a small portion of input produces the majority of the output.?

To use the 80/20 rule, you need to identify the 20% of activities or options that will generate 80% of the desired outcome. This can be done by analyzing data or by using your intuition and experience. Once you have identified these activities or options, you can focus on them and prioritize them in your decision-making.

The 80/20 rule is most useful when you have limited time or resources and need to make decisions quickly. It helps you to identify the most critical factors that will drive the desired outcome and avoid wasting time on less important activities or options.

However, the 80/20 rule may not be appropriate when you need to consider a wide range of factors that may impact the outcome. In these situations, a more comprehensive decision-making framework may be required.

To illustrate how the 80/20 rule can be used in a real-life scenario, let's consider a sales manager who needs to improve the performance of their team. By analyzing the sales data, the manager may identify that 20% of the salespeople are responsible for 80% of the sales revenue. Based on this insight, the manager can focus their efforts on coaching and developing the top 20% of performers, rather than spreading their resources and attention across the entire team. This approach is likely to yield the greatest impact on sales performance and productivity.

Decision-Making Framework #2: 40/70 Rule

Colin Powell's 40/70 rule is a decision-making framework that suggests that you should make a decision when you have between 40% and 70% of the information you need. The idea behind this rule is that waiting too long for more information can lead to analysis paralysis and missed opportunities, while making a decision with less than 40% of the information can result in a poor decision.

The 40/70 rule was popularized by former US Secretary of State, Colin Powell. He used this rule during his military career to make important decisions quickly and efficiently. The rule is based on his experience that waiting too long for more information often resulted in missed opportunities or a less effective response.

The 40/70 rule is most useful in situations where time is of the essence and you need to make a decision quickly. It is also useful when the decision is not critical and the cost of a wrong decision is low. However, in situations where the decision is critical and the cost of a wrong decision is high, more time and effort may be needed to gather more information and make a more informed decision.

To illustrate how the 40/70 rule can be used in a real-life scenario, let's consider a startup founder who needs to make a hiring decision quickly. The founder has interviewed several candidates but hasn't found the perfect fit yet. By applying the 40/70 rule, the founder can make a decision when they have gathered between 40% and 70% of the information needed to make an informed decision. This approach can help the founder to avoid analysis paralysis and make a decision that is good enough, while also leaving room to adjust their decision as more information becomes available. However, in a critical hiring decision with high stakes, this framework may not be appropriate, and the founder may need to invest more time and effort to gather all necessary information.

Decision-Making Framework #3: 90 Percent Rule

The 90 Percent Rule is a decision-making framework introduced by Greg McKeown in his book Essentialism. The rule suggests that before making a decision between options, you should ask yourself if the option you are considering is a 90% fit for what you truly want. If it is not, then it is not worth pursuing.

The 90 Percent Rule is most useful when you are facing multiple options and need to quickly narrow down your choices. To use it, first identify the single most important criteria you’re evaluating the options on, then score the option between 0 and 100 on that criteria. If the score is lower than 90 percent, then automatically change the rating to 0 and simply reject the option.By using this framework, you can eliminate options that are not a good fit, saving time and energy. It can also help you to focus on your top priorities and avoid getting sidetracked by less important activities or options.

However, the 90 Percent Rule may not be appropriate when you are facing a critical decision or need to consider a wider range of factors. In these situations, a more comprehensive decision-making framework may be needed.

To illustrate how the 90 Percent Rule can be used in a real-life scenario, let's consider a job seeker who has multiple job offers on the table. By applying the 90 Percent Rule, the job seeker can evaluate each offer and determine if it aligns with their top priorities and values. If an offer is not a 90% fit, then it can be eliminated from consideration. This approach can help the job seeker to quickly narrow down their choices and focus on the offers that are most aligned with their goals and priorities. However, in a critical career decision, such as a job change or career shift, a more comprehensive decision-making framework may be needed to ensure that all factors are considered.

Decision-Making Framework #4: Reverse Pilot

The Reverse Pilot is a decision-making framework that involves conducting a small-scale test of the opposite of your intended course of action. The idea is to gain insights into potential risks or drawbacks before making a larger commitment.

To conduct a Reverse Pilot, you need to identify the opposite of your intended course of action and then test it on a small scale. For example, if you are considering launching a new product line, you could conduct a small-scale test of not launching the product line. This could involve surveying potential customers or conducting focus groups to determine their response to the absence of the new product line.

The Reverse Pilot approach is most useful when you are facing a high-stakes decision or a significant change. It can help you to gain valuable insights into potential risks or drawbacks that may not be immediately apparent. By conducting a small-scale test, you can avoid making a larger commitment that may not be the best choice for your business or personal life.

However, the Reverse Pilot approach may not be appropriate when you are facing a low-risk decision or when the opposite of your intended course of action is not clear. In these situations, a more straightforward decision-making framework may be more effective.

To illustrate how the Reverse Pilot can be used in a real-life scenario, let's consider a leader who is struggling with how Objectives and Key Results (OKRs) aren’t working in their company. This is a situation we found ourselves in at Uvaro earlier this year. We could have tried a variation of the process, but instead we conducted a small-scale Reverse Pilot and canceled OKRs for a quarter. This allowed us to see how the team filled the gap. The team naturally adopted many of the principles espoused by the OKR process, but instead of creating new goals based on their projects, they leaned into the most important KPIs from our business model. This approach highlighted the core challenge in the original process and helped us realize where we needed to refine it - we needed to better align the process to our model, not our projects. The projects were an outcome not a driver. This approach helped us avoid falling into the trap of “hunting in the dark” for solutions.? However, in a low-risk decision, such as choosing between two similar suppliers, the Reverse Pilot approach may not be necessary.

Decision-Making Framework #5: 10/10/10 Rule

The 10/10/10 Rule is a decision-making framework that involves considering the impact of a decision over three different time horizons: how it will affect you in 10 minutes, in 10 months, and in 10 years. The idea is to think beyond the immediate consequences of a decision and to consider its long-term impact.

To use the 10/10/10 Rule, start by identifying the decision you need to make. Then, ask yourself how it will affect you in the next 10 minutes, in the next 10 months, and in the next 10 years. This can help you to see the decision from different perspectives and to consider its long-term implications.

The 10/10/10 Rule is most useful when you are facing a decision with significant long-term consequences. It can help you to make decisions that are more aligned with your goals and values and to avoid making choices that may have negative long-term impacts.

However, the 10/10/10 Rule may not be appropriate for every decision, particularly those that have only short-term consequences. In these cases, a more straightforward decision-making framework may be more effective.

To illustrate how the 10/10/10 Rule can be used in a real-life scenario, let's consider a person who is considering leaving their current job for a new opportunity. By using the 10/10/10 Rule, the person can consider how the decision will affect them in the next 10 minutes, by considering how they will feel immediately after making the decision, in the next 10 months, by considering how the new job will impact their work-life balance, and in the next 10 years, by considering how the new job will impact their long-term career prospects. This approach can help the person to make a more informed decision that is aligned with their long-term goals and values.

In conclusion, the 10/10/10 Rule is a simple yet powerful decision-making framework that can help busy people to make better decisions. By considering the short-term, medium-term, and long-term impacts of a decision, you can make more informed choices that are aligned with your goals and values.

We’ve covered five simple decision-making frameworks that can help busy people make better decisions with intention:

• First, we looked at the 80/20 rule, which involves focusing on the 20% of inputs that generate 80% of the outcomes. This framework is useful when you need to prioritize tasks or goals, but may not be appropriate when you need to consider all possible options.
• Next, we discussed Colin Powell's 40/70 rule, which encourages making decisions with at least 40% of the information and no more than 70% of the information available. This framework is helpful when dealing with uncertainty or time constraints, but may not work when the consequences of a decision are high.
• We then looked at the 90 Percent Rule from Greg McKeown's book Essentialism, which suggests aiming for activities that are 90% right for you. This framework is useful when making choices that align with your values and goals, but may not be practical in certain situations.
• We also explored the Reverse Pilot framework, which involves testing the opposite of your desired outcome to see if it reveals a better option. This framework is helpful when you need to challenge assumptions or break away from the status quo.
• Finally, we examined the 10/10/10 Rule, which involves considering the consequences of a decision in the short-term, medium-term, and long-term. This framework is useful when considering the impact of a decision over time, but may not work when a quick decision is needed.

Of course, to make the most out of these frameworks, I recommend documenting your decisions. Writing down your reasoning can help clarify your thinking and make it easier to learn from your decisions.

I encourage you to try out these frameworks in your own decision-making processes. By using simple frameworks, we can make better decisions and achieve our goals with intention, even in the midst of a busy life. And, of course, if you have other frameworks that have worked well for you, please share!