Decision boundaries
Decision boundaries are predefined criteria, thresholds, or conditions that tell you when to make, change, or stop a decision.
Definition
Decision boundaries help reduce chaos, impulsivity and delay in making choices. They may concern time, cost, risk, data quality, compliance with values or the level of congestion. In practice, they are a form of procedure: if condition X is met, I do Y; if not, I go back to the data or stop the activity.
Key ideas
- Selection criteria
- Action thresholds
- Reducing decision overload
Practice and life
Before an important project, set three thresholds: maximum cost, minimum result and a signal after which you change your strategy.
Common misconceptions
It is a mistake to set decision-making boundaries only in emotions. Thresholds should be created before the crisis, when thinking is calmer.
> A good decision often starts with a clear threshold: when yes, when no.
> — Guru Element
Questions for self-reflection
- How will I know if I have enough data?
- What risk threshold is unacceptable for me?
- When do I continue and when do I stop?