The hidden risks behind diversification.
Impact reversibility matrix
In my book, I talk about two key dimensions in a decision making process
The interaction between the dimensions is shown in the matrix below.
Seeking reversibility
High reversibility in a decision allows you to experiment and learn quickly.
However, there is a hidden cost that I don’t see many people talk about.
Costly optionality
With greater optionality comes a reduction in focus.
And when you’re trying to capitalise on a timely opportunity, this lack of focus and cost you your shot.
AI and me
For example, in 2018, I wanted to break into AI and Data Science.
The seemingly safe route would be to study part time while working full time.
However, that safety might cause me to lose motivation.
So, what’s the hurry? Why not take my time?
The closing window
I wanted to break into AI before it’s development go too far out of reach.
I knew the anxiety of leaving behind a full-time pay packet would give me just the right amount of anxiety to get my studying gears in motion.
Under thinking
When it comes to decisions, the mantra is “don’t overthink it.”
So, does anyone ever underthink things?
I wasn’t going to take that chance.
I leaned heavily on a new journalling process that would change the way I approached writing, decisions and thinking!
The mighty journal
This was one of many turning points that showed me the life changing art of writing things down.
It was the seeds of the process that I detail in my book.
And, it really gave me something concrete to hold onto when I say “I’ll have to think about that.”
And you?
What rules of thumb do you use to decide whether you should keep your options open or double down on a stand out option?