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

Missing key ideas.

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 misunderstanding

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.

Questions for self-reflection

No questions for self-reflection.

Sources

No sources.