Analysis of 18 months of decisionmaking at a German technology firm
The executive board had debated and resolved 83 major decisions during that time.
- 95% of the decisions involved only two options.
- 5% of the decisions included three options.
- There were never more than three options.
When the same executive board ranked those decisions years later:
- Of the 95% of decisions where their options were binary, just 6% of the outcomes ranked “very good.”
- Of the 5% of decisions that had three options, 40% were evaluated as having “very good” outcomes.