Decision horizon
The decision horizon is the range of time, consequences and data that we take into account when making decisions.
Definition
A short decision horizon favors quick reactions and immediate relief, but may ignore delayed consequences. A long horizon helps see the effects of decisions over time, although it may increase complexity. Consciously selecting the horizon allows you to avoid both impulsivity and analysis paralysis.
Key ideas
- Time perspective
- Delayed consequences
- Selection of the level of analysis
Practice and life
Before an important choice, write down the answer in three horizons: what gives you today, what will change in a month and what cost or profit will appear in a year.
Common misconceptions
It is a mistake to apply one horizon to every decision. Not every decision requires a decade-long strategy, but not every decision should be made for a momentary relief.
> One chooses a different way for relief today, and a different one for the life that is supposed to work in a year's time.
> — Guru Element
Questions for self-reflection
- What is the appropriate horizon for this decision?
- What do I see when I look beyond today's emotions?
- Am I analyzing too short or too long?