Life is full of choices, some easy and some hard. The hard choices are the ones that can change the trajectory of your life, your business, or even your relationships.
These are the choices that keep you up at night, that you agonise over, and that you second-guess after you’ve made them.
But making hard choices is an inevitable reality of running teams and business. So if you gotta do it, you may as well do it well, and with greater consistency.
To help, here are some key questions to ask yourself to help you make those difficult decisions whenever they arise.
1. Is it Consistent with Your Values?
The first question to ask yourself when faced with a hard choice is whether the option you’re considering aligns with your core values – both as a business and as a person. Your values are the principles that underpin the core culture and behaviours of your business, so anything that goes agains them really shouldn’t be an option. And if it is, you have to ask some really serious questions as to why it feels valid, and if you really believe in the values you’ve set.
Going beyond your business values, at a personal level they give your life meaning, purpose, and direction. They are the bedrock on which you build your decisions, actions, and vision for your future. Don’t make decisions that run counter to them…at the end of the day, you have to be able to sleep at night.
If a choice doesn’t align with your business or personal values, it’s likely to leave you feeling unsatisfied or regretful, even if it brings you temporary success or pleasure. On the other hand, choices that align with your values will provide a sense of fulfilment and long-term happiness, even if they come with short-term challenges.
2. Is it Consistent with Your Strategy?
When considering difficult decisions, it’s crucial to consider whether it fits into your overall strategy. This could mean your corporate strategy for growth, market positioning, or innovation.
For example, how often are leaders presented with a wonderful looking opportunity to close a deal with a non-ICP customer; or enter a market that looks lucrative but is a little outside of their core competencies?
Most just can’t help say yes, and after the initial ‘win’ it becomes an albatross around the neck of the business, diluting focus and causing all sorts of additional friction and resourcing issues. But because you’ve invested this much in it, it now feels even harder to kill it.
For more on this, I highly recommend reading about the ‘Canada Principal’ from Marc Randolph.
A choice that is inconsistent with your strategy may provide short-term gains but could derail your long-term plans. Always consider how the decision fits into the bigger picture.
3. Does it Support Long-term Value Creation?
Very often the right decision is the hardest one to make in the short term.
It can mean cutting resources from a team which leaves them feeling demoralised, puncturing egos in a reshuffle, saying no to a brilliant sounding idea that may see somebody leave to pursue it elsewhere…
But any parents who know the pain of saying no to their kids (no you can’t eat ice cream before you’ve finished your veg, no you can’t go and play until your homework is done), they will also know those other parents who ‘took the easy route’ and now suffer the longer-term consequences of unruly and poorly behaved kids.
Almost always, the long-term payoff of making a difficult short-term decision will outweigh that initial pain over time.
So ask yourself if you’re avoiding making the right call because you know it’ll be hard now; and focus on the future state to put things in perspective.
4. What Would an Independent Observer Most Likely Recommend Based on the Observable Facts?
Sometimes, emotional involvement can cloud our judgment and make it difficult to make rational decisions. In such cases, it can be helpful to consider what an independent observer would recommend based on the observable facts.
Try to step outside of yourself and view the situation objectively. What would someone with no emotional stake in the outcome advise you to do? This perspective can provide valuable insights and may help you see options or consequences you hadn’t considered.
5. Is it Type 1 or Type 2?
Finally, consider whether the decision is a Type 1 or Type 2 decision, a concept popularised by Jeff Bezos, the founder of Amazon. A Type 1 decision is irreversible and could have significant impact, so it requires careful consideration and often, consultation with others. A Type 2 decision is like a “two-way door”—if it turns out to be the wrong choice, you can easily go back and make a different decision.
Knowing the type of decision you’re making can help you understand how much time and effort to invest in the decision-making process. For Type 1 decisions, it will be worth taking your time, gathering all the information you can, and consulting with a wide range of stakeholders. For Type 2 decisions, it’s often better to make the choice quickly and adjust as necessary. Velocity is your friend here, more so than being right.
Conclusion
Making hard choices is an inevitable part of leading a business, but by asking yourself these key questions, you can make those choices with greater confidence and clarity.
Remember, the best choice is the one that aligns with your values, fits into your overall strategy, creates long-term value, stands up to objective scrutiny, and is appropriate for its level of reversibility.