Thread by @businessbarista

Building a habit is hard AF.

But it can be transformational if done right.

Here's a case for a new, unexpected habit that you should start building today.

It's called Decision Journaling

Read on 🧵

35,000.

Every day, you make 35,000 decisions.

Little decisions like what to wear.
Big decisions like what job to take.

And every decision has an outcome that changes the trajectory of your life in some way.

Then why don't give our decisions the attention they deserve?

Why do we treat them like bets that we set and forget?

Decisions must be treated like products:
- Actively
- Critically
- Iteratively

Think about it this way.

Let's say you're a couch manufacturer.

Quality control is going to be an essential part of your business.

From pre-production inspection to pre-shipment packaging, you'll review to make sure your couches are perfect.

Decisions are no different.

In business & in life.

The better you get at evaluating past decisions, the better you'll get at making future decisions.

So how do you improve the quality of your decisions over time?

It's called Decision Journaling.

First introduced to me by @ShaneAParrish, who described its use by Daniel Kahneman, a Nobel Prize-winning Economist.

The story goes that legendary investor @mjmauboussin was meeting with Kahneman and asked him:

"What's the #1 thing to improve an investor's performance?"

Kahneman responded: "Go to a local drugstore, buy a very cheap notebook, and start keeping track of your decisions."

5 steps for every decision journal entry:

1) What is the decision?

2) What is the desired outcome?

3) Why do you believe the outcome will occur?

4) What are the consequences if the outcome doesn't occur?

5) How do you feel at the time?

And that's it.

So simple yet so powerful.

A few other things to keep in mind while decision journaling:

- Journal big decisions not all decisions
- Journal when you're making the decision
- Set a future date to revisit the decision

Here's a decision journal template:

In case you're not sold, here's why this habit is so valuable...

1) It's simple, which makes it powerful

Complex behaviors never become habits

2) It prevents hindsight bias

We all over or underestimate our impact in decisions.

3) It forces clear decision-making today

And that is why decision journaling deserves to be a habit.

If you enjoyed this thread, follow me for more content to be a more thoughtful and strategic business builder:

@businessbarista

Finally, check out today's episode of Founder's Journal for my complete thoughts on decision-making:

bit.ly/33OkwuO