Can't make a decision? Use this billionaire's simple but powerful framework

Imagine you're the chief of one of the fastest growing companies in the world. You have a lot of tough calls and decisions you have to make on a weekly, if not daily basis.

This was the position Jeff Bezos, founder and former CEO of Amazon, faced. He had to make decisions best for the company but without becoming bogged-down in minutia. How did he do that?

Jeff felt that a "one-size fits-all decision-making process" was the wrong approach. A one-size approach makes the mistake of believing that every decision has the same amount of consequences or impact, which obviously isn't true.

Instead, Jeff encouraged his management team to view decisions as "doorways". He explained there are two types of doorways.

1. Two-way door

2. One-way door

Two-way door decisions are not that consequential and can be easily changed. You can walk through the door, try things out, and if it doesn't work out, you can just walk back out.

Making reservations that can be easily cancelled with full refund? Trying a new topping on your pizza? Trying out different phone apps? Asking a coworker for a small favor? All of these are examples of two-way doors. The downsides and risks are minimal.

One-way door decisions, on the other hand, are much more difficult, if not impossible, to reverse. Once you make this kind of decision, it's like going through a one-way door: you can't come back.

Getting married, buying a home, or starting a family are all obvious personal examples of one-way door decisions. Changing your mind on those can be very, very costly.

Bezos says that part of being a good leader is knowing the difference between one-way and two-way doors. He uses the example of the decision to create Amazon Prime as a one-way door decision. This kind of decision should be made very carefully because the stakes are high.

Next time you feel unsure about your next step, try asking yourself "What's really at stake here? What type of door am I facing"?