Decision Making Glossary

Excessive reliance on the first piece of information received (the anchor) when making subsequent decisions, even when the anchor is irrelevant.

Second DAMM pillar. Evaluate whether the risk/reward ratio is structurally unbalanced. When potential gain hides a disproportionate loss.

Post-decision monitoring system. Records the actual outcome and schedules check-ins at 7, 14, 30, 60, 90 days to track decision evolution.

Judging the probability of an event based on how easily examples come to mind. Recent or emotional events seem more likely.

Tendency to search for, interpret, and remember information that confirms pre-existing beliefs while ignoring contradictory evidence.

A 4-step decision protection sequence: Delimitation, Asymmetry, Margin of Maneuver, Minimum Move. Created by Lorenzo Stillittano to analyze and protect complex decisions.

Discipline studying how decisions are made and how they can be improved through structured methods, data, and bias awareness.

Deterioration of decision quality after making many consecutive decisions. The brain exhausts cognitive resources, leading to impulsive choices or avoidance.

Inability to make a decision due to excess options, fear of making mistakes, or information overload. Not deciding is already a decision.

Map of an individual's decision-making tendencies based on analyzed decision history. Reveals recurring patterns, strengths, and vulnerability areas.

First DAMM pillar. Define what you cannot afford to lose — the non-negotiable boundaries of the decision, the irreversible consequences.

Less competent individuals tend to overestimate their abilities, while experts tend to underestimate theirs.

Tendency to overvalue what one already owns. People attribute more value to something simply because they possess it.

A 0-100 score representing the structural soundness of a decision. Calculated as a weighted average of the 4 DAMM pillars. Below 40 = fragile decision.

The pain of losing is psychologically about twice as powerful as the pleasure of gaining. Leads to avoiding risks even when rationally advantageous.

Third DAMM pillar. The space to correct, adapt or reverse a decision if conditions change. A plan that only works if everything goes right is not a plan.

Fourth DAMM pillar. Test with the lowest possible cost before committing all resources. Validate the hypothesis with maximum learning and minimum risk.

Strategy of keeping multiple options open as long as possible, reducing the cost of error and maximizing adaptability.

Degree to which a decision can be undone or corrected after execution. Irreversible decisions require much deeper analysis.

Progressive and invisible deterioration caused by seemingly harmless decisions. Doesn't produce immediate crises but erodes foundations over time.

Preference for the current state of affairs. Change is perceived as loss, even when potential gains exceed costs.

High-impact choice that influences the long-term direction of an organization or a life. Characterized by partial irreversibility and significant consequences.

Continuing to invest in something because of resources already spent, even when it's no longer rational. "I've invested too much to stop."

Risk that a seemingly isolated decision could trigger cascading effects that compromise the entire system.