In business, decision making is crucial. Rapid decision making is often beneficial because every decision acts as an experiment. The more experiments you conduct, the more you learn and the further your business progresses. Some experiments will succeed, while others will fail. However, the faster you go, the more you learn. It's important to balance speed with accuracy to avoid setbacks.

Types of Decisions

1. Irreversible Decisions: These are decisions that cannot be undone or are extremely costly to reverse. For example, acquiring another company. Such decisions require thorough research and examination from multiple perspectives.
2. Reversible Decisions: These are decisions that can be undone or have minimal consequences if they fail. For example, trying out a new technology or marketing strategy. These decisions should be made rapidly to allow for quick iterations and learning.

Empowering Rapid Decision Making

For reversible decisions, it's beneficial to empower lower-level or junior staff to make decisions. This allows the organization to move quickly without unnecessary escalation. However, they should still consult with managers and other employees as needed.

Practical Examples

• Starting a Small Business: For businesses like car cleaning or lawn mowing, extensive planning is not necessary. It's better to start quickly and learn through experience.
• Starting a Gym: This involves significant investment and planning. Therefore, it requires thorough research and consideration from all angles.

Conclusion

Understanding the difference between irreversible and reversible decisions helps in knowing when to move quickly and when to be deliberate. This balance is key to driving innovation and productivity in your business or professional work.