Checklist & Decision Fatigue

Checklist is not a new thing for most of us, sometimes we follow checklist process without our knowledge but it would be more effective if we are able to use it with our knowledge. If we are able to manage and create our checklist simple as possible for all the main decision makings, it is the great tool in doing most effective job

Let's say if we are in the field of investing and trading, having very simple checklist as below will enhance ourself in taking any important decision

• What is the history of the company ?
• How does management perform during Good and Bad times ?
• Cash flow of the company ?
• Stakeholder relationship with the company ?
• CAGR of the company in long term ?
• Vision & Leadership team attitude of the company ?

Above are very few and simple questions which will not take more time to ask ourself before investing in any company. There can be different set of questions which can be framed for trading. The point is we should ask ourself with certain questions before investing / trading in any company. This can be achieved by having a checklist

If we are not following any checklist then we will be involved in multiple decision making without a process. Let's say if i want to take 1 or 2 decisions in a day or a week, will that be effective or making 10 decisions a day will be effective ? Definitely taking less decisions be more effective by following a checklist or process

Similarly, we should not take multiple positions in stockmarket a day or a week and try to achieve profits in that. If we are capable to reduce our number of decisions making, it will take care of the quality of that decisions. Also taking a process or following the checklist to take that decision will make more efficient in performing that action

If we notice closely, when a person making multiple decisions a day, he/she will end up with decision fatigue. His/her brain will not work as it would work under normal situation. It is very important to pre-program our brain / mind with certain information in the form of checklist or process, so that it will have a readymade questionnaire in case of making any new decision and it will work effectively and one can avoid this decision fatigue

Checklist is widely used among our Indian women's in many situations to avoid stress and fatigue. I have noticed ladies going to supermarket always carry a piece of paper or some information stored on their mobile phone on what to purchase, so that they don't miss out buying it and regret after going home. By this way they also manage their time wisely and avoid visiting the store multiple times a day to buy groceries

They are good planners. isn't it ?

"The difference between successful people and very successful people is that very successful people say no to almost everything" - Warren Buffet

When we have proper checklist in place, we will automatically adapt ourself to say 'NO' to most things which are not necessary and non-relevant, which helps in better decision making.

Have a Great Day

B G Nareshkumar