Tag Archives: decisions

Five Rules for Decision Making with the 80/20 Principle

  1. “Not many decisions are very important…Do not agonize over the unimportant decisions and above all don’t conduct expensive and time-consuming analysis…If you can’t, decide which decision has a probability of 51 percent of being correct. If you can’t decide that quickly, toss a coin.”
  2. “The most important decisions are often those made only by default.”
  3. “Gather 80 percent of the data and perform 80 percent of the relevant analyses in the first 20 percent of the time available, then make a decision 100 percent of the time and act decisively as if you were 100 percent confident that the decision is right.”
  4. “If what you have decided isn’t working, change your mind early rather than late.”
  5. “When something is working well, double and redouble your bets.”

(pp. 116-117)