Running a business is hard. You’re juggling multiple projects and teams and you have to make important decisions at speed. The pressure to make good decisions can build up and feel overwhelming.
This article will explain how you can use constraints as a tool for decision-making.
What Are Decision-Making Constraints?
In short, a constraint is a limitation or restriction that defines the parameters within which decisions are made.
Constraints and Innovation
When making decisions, constraints often feel limiting. If only we had a bigger budget or more time we’d be able to come up with a better option. With that in mind, it would seem rational to think if we removed all constraints we’d have endless creativity.
Yet, paradoxically, it’s often within the boundaries of constraints that we find the greatest creativity.
In the realm of decision-making, constraints serve as guardrails that not only streamline a process but also enhance its effectiveness. They act as catalysts for clarity, expediency, and ultimately, better outcomes.
A recent study, Creativity and Innovation Under Constraints: A Cross-Disciplinary Integrative Review reviewed 145 empirical studies on the effects of constraints on creativity and innovation. It found that individuals, teams, and organisations alike benefit from a healthy dose of constraints.
It is only when the constraints become too high that they stifle creativity and innovation.
How Constraints Help The Decision-making Process
I’m a firm believer in the power of constraints to drive effective decision-making and problem-solving. They force us to think outside the box, to prioritise and innovate in ways we might not have considered otherwise.
Instead of drowning in a sea of endless possibilities, constraints offer us a lifeboat, guiding us towards more focused and impactful actions.
Constraints help us in a couple of key areas:
- Creativity: By limiting our options or resources, constraints force us to tap into our ingenuity and find innovative ways to overcome obstacles. Embracing constraints encourages us to take risks and push the boundaries of what is possible, ultimately leading to more creative and effective decision-making processes.
- Efficiency: Constraints often lead to more efficient decision-making. When there’s a clear boundary, we’re less likely to waste time deliberating over irrelevant choices. Instead, we can quickly assess our options and choose the most suitable course of action.
How Amazon Uses Constraints
Jeff Bezos is known for his obsession with using time and resource constraints for decision-making. Amazon deliberately uses constraints to drive innovation and speed of decision-making.
This principle is outlined on its website: “Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk-taking.”
“I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.”
How to Use Constraints to Your Advantage
Now, let’s apply this constraints paradox to a common scenario: project launches.
Picture yourself knee-deep in preparations for a big launch. You’re overwhelmed by the sheer number of tasks and decisions that lie ahead. It’s a classic case of too much to do and not enough time to do it.
But what if we imposed some constraints?
- Time: Imagine if you only had 48 hours to launch. What would you prioritise? What features or elements are absolutely essential for a successful launch? Suddenly, the fog of indecision begins to lift, and clarity emerges from the chaos.
- Budget: What if you were working with a limited budget? How would that impact your approach to the project? Would it force you to be more resourceful, and more creative in finding cost-effective solutions?
- Capacity: What if your team halved in size? How would you adjust your workflow and communication strategies? Constraints on manpower can lead to a more streamlined and efficient operation, with each team member stepping up to fill crucial roles.
Befriending Constraints for Better Business
When you befriend constraints and leverage them to push you to think differently, your business goes further, faster. You can use constraints to challenge the status quo, and ultimately deliver better results. If they work so well for Jeff Bezos and Amazon to drive innovation and speed of decision-making, they can work for your business too.
