Decisions come in all shapes and sizes and carry different levels of risk vs reward, cost vs benefit. Here’s a quick and easy way to choose what level you’re dealing with – is it a hat, a haircut or a tattoo? We can move reasonably quickly when dealing with hats and haircuts. But tattoo level decisions require more time and attention to detail.

Hats (Low-Stakes, Easily Reversible Decisions)

Most every-day decisions are like hats. Try one and if you don’t like it, put it back and try another. The cost of a mistake is low, so move quickly and try a bunch of hats. These choices are usually at a tactical level – what to do in the moment.

  • Choosing what to wear today: If you don’t like your outfit, you can change it tomorrow.

  • Selecting a lunch option: Didn’t enjoy your meal? Pick something else next time.

  • Which productivity app to try: If the app doesn’t suit you, delete it and try another.

  • Where to sit in a meeting: If the spot is uncomfortable, you can sit somewhere else next time.

  • Which route to take to work: If traffic is bad, try a different route tomorrow.

  • Selecting a supplier for office supplies: If the supplier is unreliable, you can switch to another with little consequence.

  • Setting the date for a team meeting: If the timing doesn’t work, reschedule without major disruption.

  • Choosing which marketing channel to test for a campaign: If the channel underperforms, you can shift budget to another channel next week.

  • Deciding on a daily production schedule: Adjustments can be made the next day based on workflow needs.

  • Trying a new customer service script: If it doesn’t resonate, revert to the old one or try another approach.

Haircuts (Medium-Stakes, Reversible with Time Decisions)

Some decisions are like haircuts. You can fix a bad one, but it won’t be quick, and you might feel foolish for a while. That said, don’t be scared of a bad haircut. Trying something new is usually a risk worth taking. If it doesn’t work out, by this time next year you will have moved on and so will everyone else. These decisions are more often at an operational level – the ‘where’ and ‘how’ of agreed process and procedure.

  • Taking a short-term job assignment: If it’s not a great fit, you can move on after the assignment ends, but you may have to stick it out for a while.

  • Implementing a new team process: If it doesn’t work, you can revert or adjust, but it may take weeks or months to see results and fix issues.

  • Buying a moderately expensive gadget: If you regret the purchase, you might sell it or replace it later, but not without some hassle or loss.

  • Switching departments within a company: If it’s not a good fit, you can request another move, but it may take time and effort.

  • Launching a limited-time product or service: If the market response is poor, you can discontinue it, but not without some cost and learning curve.

  • Changing pricing or promotional strategies: If new prices don’t yield results, you can adjust them, but customers may need time to adapt.

  • Reorganising team roles or reporting lines: If the new structure isn’t effective, you can restructure again, but not instantly.

  • Rolling out a new performance evaluation system: If it’s unpopular or ineffective, it can be revised after a review period.

Tattoos (High-Stakes, Irreversible or Long-Lasting Decisions)

A few decisions are like tattoos. Once you make them, you have to live with them. Some mistakes are irreversible. Maybe you’ll move on for a moment, but then you’ll glance in the mirror and be reminded of that choice all over again. Even years later, the decision leaves a mark. When you’re dealing with an irreversible choice, move slowly and think carefully. These choices are mostly at a strategic level – the bigger questions about why this is important and who is involved or affected.

  • Accepting a job offer that requires relocation: Moving cities or countries is a big commitment and hard to reverse.

  • Making a public statement or commitment on behalf of your organisation: The consequences can be long-lasting and affect reputation.

  • Merging with or acquiring another company: This fundamentally changes the business and is extremely difficult to undo.

  • Expanding into a new interstate or international market: Significant investment and organisational change are required, and reversing course can be costly and damaging6.

  • Defining or changing the company’s core mission, vision, or values: This shapes the organization’s identity for years and is not easily altered.

  • Shifting to a digital-only business model: Once the transition is made, reverting to old models is rarely feasible.

  • Selling a major business unit or intellectual property: Once sold, these assets are gone for good, with lasting impact on the company’s future.

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