Upstream Decisions Simplify Choices

A framework for making better decisions by focusing on high-level values and principles first, which then naturally guide lower-level tactical choices.

Core Concept

• Make upstream decisions about values and priorities first
• These decisions then make downstream tactical choices obvious
• Prevents getting stuck on small decisions without clear direction

Key Benefits

• Simplifies decision-making process
• Creates consistency across choices
• Reduces time spent on tactical decisions
• Makes choices more aligned with core values

Real World Example: Packaging Decision

• Company struggling to choose between different packaging options:
  • Cheap packaging with good margins
  • Premium packaging with better customer experience
  • Eco-friendly packaging with sustainability focus
• Problem: Couldn't decide because they hadn't defined their core values
• Solution: Define what you value most first:
  • If margins are #1 priority → choose cheapest option
  • If customer experience is #1 → choose premium option
  • If sustainability is #1 → choose eco-friendly option

Amazon's Application

• Jeff Bezos focuses on "what won't change" rather than trends
• Core unchanging customer desires:
  • Lower prices
  • Bigger selection
  • Faster delivery
• This makes strategic decisions clearer - anything that delivers on these core values is worth pursuing

Implementation Tips

• Identify your core values and priorities upfront
• Document these values so they can guide future decisions
• When faced with tactical choices, refer back to core values
• Make sure team understands these values to enable autonomous decision-making
• Regularly review if decisions align with stated values

Common Mistake to Avoid

• Getting caught up in tactical decisions without clear values
• Making inconsistent choices due to lack of guiding principles
• Trying to optimize for everything instead of having clear priorities