Preface:
In the fast-paced world of business, decision-making is a daily responsibility for leaders. Some of these decisions are low-risk and can be easily reversed, while others set the organization on an irreversible path, demanding careful deliberation. However, many leaders fall into the trap of treating all decisions the same way—either being overly cautious about reversible choices or rushing into irreversible ones.
This blog expands on the concept of One-Way and Two-Way Door Decisions in the context of change complexity. Popularized by Jeff Bezos, it can be a game-changer if understood properly.
Understanding One-door Vs Two-door decision making rights
a) One-way door decisions
One-way door decisions are generally irreversible or very difficult to undo. Once you walk through this door, going back is costly, time consuming or a combination of both. These decisions alter the status quo and require careful planning, analysis and broader alignment before taking action. Examples here include complex adaptive change initiatives such as M&As Strategy shift or Organizational restructuring.
b) Two-way door decisions
Two-way door decisions are reversible choices. If you walk through the door and don’t like what you see, you can turn around and go back or try a different approach. These decisions allow for experimentation and iteration and should be made quickly to maintain speed and agility. Examples include a a new pricing strategy, launching pilot program, or testing a new technology in a limited setting. The idea here is to conduct experiments, test and iterate.
Linking decision making rights with Change complexity
Understanding the decision-making framework in the context of change complexity is crucial. In terms of change complexity, we broadly classify them as first-order and second-order changes:
- First-order change refers to incremental adjustments that improve existing processes without altering the fundamental system. These changes are typically low risk and reversible, making them well suited for decentralized decision making where teams or middle managers should be empowered.
- Second-order change on the other hand is transformational, reshaping structures, mindsets or strategy. Since these changes are high stakes and less reversible, care should be taken to deliberate. Think of it as a one-way door decision, where changes demand rigorous planning because there’s no easy way back.
Traps Leaders fall into during decision making
Leaders often fall into certain traps—speed and power – which can distort their decision-making, particularly when navigating one-way vs. two-way door decisions.
The trap of speed pushes leaders to act quickly, sometimes treating one-way door (irreversible) decisions as if they were two-way door (reversible) ones, leading to rushed, poorly thought-out changes. This one is so common across companies where leaders jump into implementation mode.
The trap of power occurs when leaders centralize decision-making, assuming they alone have the best answers, which can lead to blind spots, especially in complex, transformational (second-order) change initiatives.
Conclusion:
Effective decision-making is at the heart of successful change initiatives. Understanding the distinction between one-way and two-way door decisions helps leaders match their approach to the complexity of the change at hand.
Afterall, change is not created equally. By aligning decision-making frameworks with the nature of change, leaders can drive both agility and strategic impact.
Srikanth is the founder of Vruddhi India, a management consulting firm focused on Change leadership practices. We specialize in guiding companies through the complexities of change in a way that is uniquely personal and customized. You can email me at srikanth.pv@vruddhiindia.com for more information.