Skill 3:

When To Wait And

When To Act
Workbook
The Automatic Behavior: Decide as soon as possible or as late as possible but never in
between.

If we act too soon on the information we gather, we miss out on vital information that could
change our decision. If we act too late, we miss out on opportunities. So how do we know
when to keep gathering information and when to act?

When decisions are easily reversible or inconsequential, moving slow and letting them linger
and occupy mental space is the biggest risk. If you can take something back, or it doesn’t
really matter, gathering too much information becomes a drain on resources.

When the stakes are high and you can’t take it back, you want to decide as LATE as possible.
That is, decide at the very last minute. Keep as many choices on the table as possible while
learning more as you wait.

You want to give yourself as many options as possible in the future so that if something
changes, you have space to move and position yourself in the path of greatest opportunity.

Identify your flags for Stop, Flop, and Know:

Stop is about identifying the signs you’ve hit the limit of useful information. Looking for
behaviors such as:

1. You’re Googling things in a panic to learn more.

2. You’re asking people for advice who are more than one step removed or don’t have
experience solving these problems.

3. You’re going over the same information (or same argument) more than once

When it comes to your big decision, are you exhibiting any of these behaviors? Which one?
Describe what you are doing that is raising a flag below.

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Flop is about being able to identify your first lost opportunity. For the decision you are
working through, identify as many realistic possible opportunities as you can. Have any of
these already been lost? Which ones? How do you know?

Know is about identifying the critical piece of information. When it comes to the decision you
are currently trying to make, what is the piece of information that, if you had it, you would
immediately know what to do?

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Preserve your optionality:

You can preserve your optionality using three techniques:

1. Avoiding the worst-case scenario

2. Shooting bullets not cannonballs

3. Living with the decision before executing

In order to avoid the worst-case scenario, ask yourself these questions:

a. What’s the worst outcome for the decision you’re making?

b. What options must you take to avoid the worst outcomes?

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c. Which options are left over when you don’t do what leads to the worst outcomes?

Shooting bullets over cannonballs is about keeping our future options open by taking as
many small, low risk steps towards as many options as possible before committing all of our
energy to one option. What are some ways you could test your solution to your big decision
before committing to it completely?

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Living with the decision before executing gives you time to have an undo moment, check in
with your emotional brain, and gather information in a new light right up to the last possible
moment (instead of after.) It helps to prepare for this technique by doing a short thought
experiment where you imagine yourself in this position. If you can visualize holding back on
announcing an important decision after you’ve made it, you can anticipate what adjustments
you might need to make to maintain clarity and integrity.

Here’s a recap of some prompts to help you apply this skill:

How Can I Apply this Professionally?

• Consider the pace of decisions. Most decisions should be made in less than 48 hours.

◊ Delegate inconsequential and reversible decisions to the lowest level possible in order
to develop judgment.

◊ Delegate consequential and reversible decisions to high judgment people on your

team.

• For decisions that you can’t make in under 48 hours, you want to determine what
information you need to make the decision and what variables you need to monitor to
make sure you’re not losing out on opportunities. These decisions should be made as late
as possible.

• When you catch yourself thinking ‘I just need to make a decision’, ask yourself if you’re
spinning and feel like you have to make a decision to make yourself feel good, or if you
really need to make a decision.

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 • Live with all “who” decisions for at least a day or two before announcing them to the
team.

• Avoid the worst case outcomes while you’re waiting.

• Find ways to try things before you commit resources.

◊ Give job candidates on the job simulations or tests.

◊ Sell a product before you write it.

How Can I Apply this Personally?

• Determine a framework for how quickly you’ll make decisions, say if its impact is under
$500 you’ll make it in less than 48 hours.

• Decisions that take more than 48 hours to make, use STOP, FLOP, or Know as an
indication of when to make them.

• Live with all “who” decisions for at least a day or two before telling anyone.

• When you catch yourself thinking ‘I just need to make a decision’, ask yourself if you’re
spinning and feel like you have to make a decision to make yourself feel good, or if you
really need to make a decision.

• Find ways to try things. For example, go away with your partner for a week before
moving in with them so you can see what they’re like when you’re with them 24/7. Rent
in a neighborhood for a year before you buy there.

This workbook is intended for the Farnam Street Decision by Design course and not
intended for distribution. If you would like to distribute these in your organization
please contact shane@farnamstreetblog.com.

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