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By now, most of us have used or heard of Amazon. Amazon is worth nearly a trillion dollars making it’s founder and CEO Jeff Bezos the richest man on earth. Most of us know Amazon for being extremely successful in an exceptionally small time. In just 25 years Amazon became the giant it is today.
Steve Anderson was one of the people intrigued by Jeff Bezos and Amazon’s huge success. That curiosity led him to write his famous book “The Bezos Letters”. In his book, he revealed 14 principles Amazon used to become the huge success they are.
One of the principles mentioned how Amazon avoided bureaucracy within the company. Corporate bureaucracy is an immense problem for established companies. There are times where making the most simple decision takes a large amount of time for companies.
Amazon solves this through the type 1 – type 2 formula. Type 1 decisions are major decisions with big consequences and no going back. Type 2 decisions are decisions that can be changed or reversed. You typically need less information for making Type 2 decisions.
Separating the two types of decisions has immensely benefited Amazon. They have been able to avoid losing time on decisions that aren’t that important.
Just like Amazon, we can integrate the two types of decisions into our daily lives to avoid indecisiveness and time loss. Whether you are indecisive or own a bureaucratic organization separating the two types of decisions can immensely benefit you.
Book: The Bezos Letters