I’ve recently signed up to receive management material from the Stanford Business School and thought that this video on the value of having a simple set of rules to guide you was quite valuable. This is not a new idea: Obama only wears grey or blue suits because he has so many other decisions to make and Alton Brown has a few simple rules to guide what he eats and drinks to manage his weight such as limiting to once a week alcohol and dessert consumption and never consuming “diet” foods. That said, this piece elaborates how you might create some rules in a business setting,
Why a simple set of rules?
- We get faster decisions
- We get better decisions (if we overfit for the past, this is a poor predictor of the future)
- People can actually follow a small number of rules even under great stress.
The gist of the research:
Researchers examined product development teams to see who got the most done and overly rule driven and complicated processes resulted in the wrong products being produced very efficiently while teams with no rules had a great time getting nothing done.
Teams benefited from having a few rules that would guide work but leave flexibility for innovation.
The steps recommended to develop your rules:
- Set your objective
- Find the bottleneck (it may not be where you think it is – in the example given it was during the hiring process.)
- Develop your rules by looking at your own data of when you have been successful and by talking to outside experts.
The hardest rules to follow are the ones telling you when to stop doing something – we are all great at starting something and very poor at stopping.