Putting your life on autopilot – the benefit of decision rules

Why do you need decision rules?

There are a number of benefits to a decision rule:

  1. They remove a lot of the emotional angst associated with making a decision — you just do it and move on — you don’t over-analyse the outcome in each case; and
  2. You know what you did, and can therefore make considered adjustments over time, and when the pressure has subsided.

What are the key decisions?

The first step in designing decision rules is to think about the key decisions you are likely to face on a consistent basis throughout your life, or that will need to be made under pressure.

Letting your decision rules mature

You need to give a decision rule time to mature, rather than changing them all the time. Applying a decision rule is all about letting the ‘law of averages’ work their magic.

Updating your decision rule

There is no point doing the same thing over and over again and expecting a different outcome. This is both the blessing and the curse of a decision rule.

What decisions are amenable to a decision rule?

In my view, there are two sorts of decisions that benefit from decision rules:

  • Decisions you make rarely, but in circumstances of great pressure and consequence.

Why I am thinking about decision rules now?

When I was 12 my father closed his business during one of Australia’s most notorious credit crunches. We lost everything. Our house, car, holiday home. For many years I thought those traumatic events had scared me, held me back. But in the midst of this crisis, I can now see how in fact those childhood events prepared me.

  • Stay ahead of the curve. Cut costs immediately and deeply. Preserve a cash buffer. Do not take on debt.
  • As soon as we see genuine and confirmed green shoots in the economy (but not a moment before), put our foot down and invest like crazy on the upswing.
  • Keep everyone informed as to what we are doing, and why.
  • If you run out of cash, close the doors before you have lost everything.

Why doesn’t Government use decision rules?

What has really shocked me is the apparent lack of decision rules within Government — and most importantly, the bureaucracy that supports it. A key role of our expensive bureaucracy should be to maintain and develop decision rules of both categories.

 

The information contained in this post is current at the date of publishing – 20 April 2020.

Our Great Lawyer Guarantee

We want to be part of your team over the long term. We'll achieve this by sticking closely to the following principles:

  • We'll listen carefully to understand what you want to achieve. Then we'll thoroughly explain our advice and step you through the documents. You can be sure you'll know the full consequences.
  • Our lawyers work as a team, so someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.
  • One of our key goals is to pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.
  • We only do what we're good at. You can be confident that we know what we're doing and won't pass on the cost of our learning.
  • For advice and documents, we provide a fixed or capped quote so you don’t take price risk. If you're in a dispute, we'll map out the process and costs so you know what to expect.
  • We're not in this game for our egos. We're in it for a front row seat to witness your success.

We measure our success on how efficiently we have facilitated your objectives, enhanced your relationships, and reduced the level of stress for all involved.

If we sound like people you can work with, call us now on 1300 654 590 and speak directly with a great lawyer.

Breaking the law en masse is not innovative or disruptive. It’s cheating.

Breaking the law en masse is not innovative or disruptive. It’s cheating.

If you had sat me down 5-10 years ago and asked me the top 5 things I would like to change about the taxi industry, within about 20 minutes of brainstorming I would have nailed all 5 of the ‘innovations’ that Uber has implemented. It’s all the rage to bag Uber right now, and that is not my point. I am bagging the people who think that Uber was innovative, or disruptive. Uber, as a business model, was simply to break the law en masse. Plain and simple.

read more
How ‘diverse’ are you, really?

How ‘diverse’ are you, really?

Advocating for diversity makes sense for a minority view trying to get a foothold or survive in a sea of opposition. Diversity and tolerance protect the little guy. But once a foothold is established for our idea, we tend to become a lot less tolerant and accepting of true diversity of opinion on the issue.

read more
The commoditisation of everything

The commoditisation of everything

There really is only one sustainable career or endeavour – commoditisation. This is the work of taking something requiring high levels of knowledge, experience and creativity, and turning it into something that a novice can easily do for themselves, for free. If you want to maintain and grow your real value over an extended period, that is it. There is nothing else.

read more