In this post, I’ll share a framework we’ve developed at Coinbase that helps us make decisions more effectively. Our core values include Clear Communication and Efficient Execution. This framework is an example of how we operationalize those values.
This framework can be used to decide:
If difficult decisions are slowing down your organization with endless meetings, hurt feelings, and constant second guessing, this may help!
We’ve also created a Coinbase Decision Making Template to help take you through the process. Save it to Google Drive, then go to File -> Make a copy to start making a decision.
The three steps in the process are:
We’ll cover each below, but first let’s zoom out to look at the characteristics of good and bad decision making.
The vast majority of decisions in a company are low-risk and should be made unilaterally by the owner of that area (e.g. should we move the stand up meeting from Mon to Tues this week).
A decision making framework is only needed when there is lack of clarity about a decision that is higher risk. Higher risk can mean that the decision has long term implications or that it can be costly to unwind if the wrong decision is made.