The CEO's Secret Weapon: The Decision Journal
Utkarsh Kaushik
September 10, 2024 · 6 min read
Let’s talk about your last big decision. Maybe it was a new hire. A big marketing spend. A change in your pricing. How did you make it? If you are like most founders, it was probably a messy combination of gut feeling, a few conversations, and a whole lot of anxiety.
Now for the more important question, six months later, how did that decision turn out? And more importantly, what did you learn from it? The likely answer is, you have no idea. The outcome is blurry, and the reasoning behind the original decision has vanished into the fog of memory.
This is a massive, unforced error. You are flying blind. You are not learning from your successes or your failures. To build a truly great business, you have to get better at making decisions. And the only way to do that is to start tracking them.
Your Memory is a Liar
We are all susceptible to hindsight bias. When things go well, we conveniently remember that we were brilliant and confident all along. When things go badly, we tell ourselves 'we knew it was a long shot.' Your memory is a self serving narrator, not a reliable historian.
A Decision Journal is the antidote. It is a simple practice, championed by thinkers like Jeff Bezos and Daniel Kahneman, to bring rigor and reflection to your most important choices. It turns your experience into a dataset you can learn from.
How It Works
Before you make any significant decision (one that is not easily reversible), you take 15 minutes to write down the answers to these questions:
- What is the decision? (Be specific. Not 'hire a marketer,' but 'hire a part,time content marketer for $2,000/month').
- Why am I making this decision now? (What is the context? What problem am I trying to solve?).
- What do I expect to happen? (What is the desired outcome? What are the key metrics? E.g., 'I expect this to increase our organic traffic by 20% in the next 6 months').
- What is the probability of this outcome? (On a scale of 1-100%, how confident am I? This forces you to be honest about uncertainty).
- What is the second,order consequence? (What else might happen as a result of this decision, good or bad?).
Then you make the decision. And here is the crucial part, you set a calendar reminder for 6 months from now to review it. You compare the actual outcome to your expected outcome. You do not judge yourself. You learn. 'Was I overconfident? Did I miss a key variable? What do I know now that I did not know then?'
This simple habit will be your operational superpower. It will make you a clearer, more rational, and ultimately more successful leader.
Better Inputs, Better Outputs
A good decision making process is the ultimate form of leverage. It is the central operating system of your business.
Our free audit can help you clarify the strategic inputs for your biggest decisions. By understanding your core bottlenecks, you can ensure you are solving the right problems in the first place.