S2E03 - The Basics - How to stop wasting time and energy on decisions
In this insightful episode of "Ask a Decision Engineer," host Michelle Florendo explores the concept that not all decisions are created equal. Learn how to identify which decisions truly deserve your time and energy, and discover strategies for handling the rest efficiently.
Studies suggest that an average person makes over 33,000 decisions in a single day. But do all these decisions deserve equal attention? Many people find themselves paralyzed by even small choices, leading to stress and anxiety. This episode breaks down why this happens and offers practical strategies to allocate your decision-making energy more effectively.
S2E3 | Basics: How to Know What Decisions to Dedicate Energy To
By tuning in, you'll gain valuable insights into the different systems our brains use for decision-making and learn how to avoid decision fatigue. Michelle's advice will help you identify which decisions truly warrant your full attention and provide techniques for streamlining less critical choices.
Whether you're struggling with daily indecisiveness or looking to improve your decision-making process for big life choices, this episode will equip you with tools to make clearer, more confident decisions while preserving your mental energy.
Table of Contents
Introduction: Not All Decisions Are Equal [00:00:00]
Quality of Decisions vs. Quality of Outcomes [00:02:00]
Two Systems of Decision Making [00:05:15]
Decision Fatigue and Energy Management [00:07:15]
Evaluating Decision Importance [00:08:30]
Strategies for Handling Less Important Decisions [00:10:30]
Introduction: Not All Decisions Are Equal [00:00:00]
Michelle introduces the concept that not all decisions deserve equal time and energy. She shares an anecdote from a virtual office hours session with Srinivasa Rao's Unmistakable Creative Tribe, where an attendee expressed feeling paralyzed by even small decisions like choosing dinner. This example highlights how decision-making anxiety can affect people in their daily lives.
Quality of Decisions vs. Quality of Outcomes [00:02:00]
Michelle addresses a common misconception: equating the quality of a decision with the quality of its outcome. She emphasizes that good decisions can sometimes lead to bad outcomes due to factors outside our control, and vice versa.
Example: Drinking and Driving Decision
Scenario: Choosing whether to drive home after drinking
Key point: A good decision (not driving) can lead to a bad outcome (still getting in an accident), while a bad decision (driving) can lead to a good outcome (arriving safely)
Two Systems of Decision Making [00:05:15]
Michelle introduces Daniel Kahneman's concept of two decision-making systems from his book "Thinking Fast and Slow":
System 1: Fast, impulsive, automatic, and intuitive
System 2: Slow, thoughtful, deliberate, and calculating
She explains the importance of matching the right system to the right situation and reserving System 2 for decisions that truly warrant it.
To illustrate this point, Michelle provides an example: If you're holding an ice cream cone and you trip and start falling, you wouldn't want to use your slow System 2 to decide whether to let go of the ice cream cone to catch yourself. In this situation, you should let System 1 do its job and react instinctively. Conversely, you wouldn't use System 1 to decide where to invest your life savings – that's a job for the thoughtful, deliberate System 2.
Decision Fatigue and Energy Management [00:07:15]
Michelle discusses the concept of decision fatigue, coined by social psychologist Roy F. Baumeister. She explains how we have a finite reservoir of energy for decision-making and the importance of saving it for crucial decisions.
Example: Work Uniforms of Famous Leaders
Barack Obama wore similar suits daily to reduce decision fatigue
Apple's Steve Jobs also adopted a "work uniform" of black turtlenecks and jeans
These strategies allowed them to focus their energy on more important decisions in their roles
Evaluating Decision Importance [00:08:30]
Michelle emphasizes the importance of distinguishing between decisions that require significant deliberation and those that don't. In American society, we're often socialized to want to maximize every decision, always seeking the "best" option. However, this approach can lead to unnecessary stress and energy expenditure on relatively inconsequential choices.
Instead, Michelle suggests considering the return on investment (ROI) of the time and energy spent on each decision. She encourages listeners to think about what they might be giving up by dedicating excessive time to certain decisions. Is the potential benefit worth the cost in terms of time, energy, and mental capacity?
To help evaluate decision importance, Michelle offers several strategies:
Consider the return on investment (ROI) of time and energy spent
Ask if it's a "getting coffee or getting a face tattoo" situation (Is it a small decision or a big one?)
Determine if it's a once-in-a-lifetime decision or if you'll have future opportunities to decide
Evaluate how expensive it would be to "clean up the mess" if things don't turn out well
Strategies for Handling Less Important Decisions [00:10:30]
Once you've identified which decisions don't warrant extensive deliberation, it's crucial to have strategies for handling them efficiently. Michelle shares a personal anecdote about wedding planning, where a friend advised her to "Pick the top five things you care about, and let go of the rest." This approach can be applied to decision-making in general, helping to focus energy on what truly matters.
Michelle also references Barry Schwartz's book "The Paradox of Choice," which discusses how an abundance of options can lead to decision paralysis and dissatisfaction. To combat this, Schwartz suggests using simple rules or heuristics for less important decisions.
For decisions that don't warrant extensive deliberation, Michelle suggests:
Decide in advance or "front-load" decision-making (e.g., meal planning, auto-deposits)
Use rule-based heuristics (e.g., always choose the second most expensive option, as mentioned in "The Paradox of Choice")
Outsource or crowdsource decisions (e.g., delegating playlist creation for an event)
Key Takeaways
The quality of a decision is separate from the quality of its outcome.
Reserve your slow, deliberate thinking (System 2) for decisions that truly warrant it.
Be aware of decision fatigue and manage your energy accordingly.
Evaluate the importance of decisions based on their potential impact and the cost of reversing them.
Use strategies like front-loading, heuristics, or delegation for less critical decisions.