This is the Best Way for Project Managers to Make Decisions

You are a good decision-maker, right? Project managers usually are. The best ones anyway. Decision-making is a crucial part of project management. You need to choose the right resources, set priorities, or handle unexpected changes. You constantly face complex decisions in your work. But making good decisions is difficult, time consuming and tiring. It takes a huge amount of mental energy.

What if we could take away some of that strain?

Implement a simple, repeatable system for making decisions.

Well, its possible.

And we have the system for the job.

A system that will lessen the time it takes to make a decision, and improve the accuracy of your decisions.

The Highest Source

The source most often credited with popularising this method is the great investor Charlie Munger.

In fact, both Charlie Munger and Warren Buffett have spoken about the concept of inversion. A mental model that involves flipping a problem on its head to find better solutions.

Munger frequently referenced the idea, saying:

“Invert, always invert.”

Inversions are a powerful mental model used to solve problems by flipping the situation on its head. Instead of focusing on how to achieve a goal, you consider the opposite: how to avoid failure or how to make the problem worse. By thinking in reverse, you uncover hidden risks, mistakes, or obstacles that you might not have noticed using a traditional, forward-thinking approach.

How to Use Inversions

Here’s a structured way to use inversions to solve a problem effectively:

Identify the Problem or Goal

• Start with a clear definition of what you're trying to solve or achieve.

• Example: "How can I improve customer satisfaction?"

Invert the Problem

• Flip the problem around by asking how you could create the opposite outcome.

• Example: "How can I ensure customer dissatisfaction?" This helps you think about what behaviors, actions, or decisions would lead to failure.

List All the Negative Actions

• Brainstorm a list of actions or circumstances that would make the problem worse or prevent success. Focus on identifying behaviors, processes, or choices that would lead to failure.

• Example (Ways to Ensure Customer Dissatisfaction):

  • Be slow in responding to customer inquiries.

  • Offer poor-quality products.

  • Be unprofessional or rude in communications.

  • Ignore customer feedback or complaints.

  • Make the purchase or refund process complicated.

Avoid the Negative Actions

• Now that you have identified the actions that lead to failure, use this information to actively avoid these pitfalls. This helps you prevent common mistakes and risks.

• Example (Avoiding Dissatisfaction):

  • Ensure prompt responses to customer inquiries.

  • Focus on delivering high-quality products.

  • Train staff to be courteous and professional.

  • Create a system to collect and act on customer feedback.

  • Simplify the purchasing and refund process.

Analyze Insights from Inversion

• Think about how the inverted approach highlights issues you hadn’t considered before. What do these failures teach you about how to succeed? Sometimes, inversion uncovers more effective solutions because it helps you focus on the most critical elements of the problem.

• Example: By focusing on avoiding poor customer service, you realize that improving your customer support team's response time is more important than adding new features to your product.

Use Inversions for Continuous Improvement

• Apply inversion thinking regularly, not just once. Continuously revisit the problem from an inverted perspective to spot emerging risks, inefficiencies, or potential failures.

• Example: Every few months, ask yourself, "What new mistakes could we make that might lead to customer dissatisfaction?" This keeps you vigilant and helps you prevent problems before they arise.

Examples of Using Inversions in Problem Solving

Business Growth

• Goal: "How can I grow my business?"

• Inversion: "How can I destroy my business?"

• Negative Actions to Avoid:

  • Neglect customer service.

  • Overprice products without improving value.

  • Ignore market trends.

  • Fail to adapt to new technology or innovation.

• Outcome: You learn that customer service, fair pricing, adaptability, and innovation are key to business growth, so you focus on enhancing these areas.

Personal Productivity

• Goal: "How can I be more productive?"

• Inversion: "How can I waste time and reduce productivity?"

• Negative Actions to Avoid:

  • Constantly checking social media.

  • Working without a clear plan or goals.

  • Multitasking on unimportant tasks.

  • Procrastinating or delaying decisions.

• Outcome: You focus on minimizing distractions, creating a structured daily plan, and prioritizing tasks to improve productivity.

Team Collaboration

• Goal: "How can I improve team collaboration?"

• Inversion: "How can I destroy team collaboration?"

• Negative Actions to Avoid:

  • Failing to communicate clearly or often.

  • Not sharing information across departments.

  • Ignoring team members' input or feedback.

  • Creating competition instead of cooperation among teams.

• Outcome: You realize the importance of communication, transparency, inclusion, and fostering a collaborative rather than competitive environment.

Financial Planning

• Goal: "How can I save more money?"

• Inversion: "How can I waste money and go broke?"

• Negative Actions to Avoid:

  • Overspending on non-essential items.

  • Not budgeting or tracking expenses.

  • Using credit irresponsibly.

  • Failing to save or invest for the future.

• Outcome: You develop better financial habits by tracking your spending, avoiding impulse buys, and creating a budget plan.

Benefits of Using Inversion

• Prevents Mistakes: Inversion makes you focus on what not to do, which is often just as important as figuring out what you should do. It highlights potential pitfalls and helps you avoid common errors.

• Uncovers Hidden Insights: By focusing on failure, you may identify underlying factors or blind spots that traditional thinking overlooks.

• Simplifies Complex Problems: Inversion cuts through complexity by helping you focus on avoiding the key things that could go wrong, which often simplifies decision-making.

• Improves Risk Management: This method forces you to think about risks and challenges upfront, allowing you to plan for contingencies.

• Encourages Creative Problem-Solving: Thinking in reverse sparks creativity by forcing you to look at the problem from a completely different perspective.

  
  

  

Conclusion:

Inversion is a powerful tool to solve problems by looking at them from an opposite angle—thinking about what would lead to failure or the worst possible outcome. By avoiding those failure-inducing actions, you’re more likely to succeed. It is particularly useful in decision-making, strategic planning, and risk management because it sharpens your focus on preventing mistakes and handling challenges before they arise.