Make Better Decisions: Odds, the ITR Screen, and the 50/50 Partner Test
Patrick Bet-David and Tom Ellsworth, with audience case respondents
Treat every decision as a bet you can inspect: score your track record, quantify each crisis with Investment-Time-Return before you escalate it, ask why five times to reach the real cause, and bring a neutral third party (and often a cheque) when a partner will not change.
This was 'Move Two' of the Day One CEO workshop: mastering the ability to reason, which Patrick Bet-David calls 'processing'. He argued decision-making is the most important skill in life, ran three live workbook exercises (score your last five big decisions, dissect one that failed, run it through a problem-solving flow), and Tom Ellsworth taught the eleven types of workplace crisis and the ITR (Investment, Time, Return) screen. The session closed with the day's first case study, a fictional 50/50 partnership where the operations partner stopped growing, and Bet-David's real-world resolutions: a dinner that turned a 35% owner into a 65% owner through fair buyouts, and a founder pair rescued by a hard EBITDA rule. For the year ahead, it gives you a repeatable way to make, review, and escalate decisions, and a playbook for the hardest conversation in business: the one with your partner.
Best for: Founders and CEOs who decide by gut and never review the results, Number-twos and managers who bring problems to the boss without options or numbers, Anyone in a 50/50 or minority partnership where one partner has stopped pulling weight, Leaders who keep re-fighting the same fires, Trainers and sales leaders who want to develop leaders faster, Parents and spouses making values-based family decisions
Skills to build
The capabilities underneath the stories, each with a way to practise it.
Scoring your own decision track record
Keeping a running list of your big decisions (with the dollar amount at stake) and a 1-10 score of how each turned out, so you can see how often, how fast, and how well you decide compared with competitors.
How to practise: Start with the last five big decisions of the past few months and score each 3, 5 or 10. Add every decision above your own threshold (Bet-David used $10,000 to $10 million) as you make it, and score it when the outcome is known. Once a quarter, look at the hit rate and the speed. You know it is working when you can name your pattern of misses (too slow, too greedy, skipped diligence) and it stops repeating.
17:06:19-17:14:41 / X1QcR7CyTzFdlLfcTWoXRunning the ITR screen before escalating a problem
Investment-Time-Return: before bringing a crisis to a leader, quantify the Return (what the crisis costs or what fixing it saves), the Time to fix it, and the Investment the fix needs. Work backwards from return.
How to practise: For every problem you raise this month, write three lines first: impact per week, time to fix, cost to fix. Tom Ellsworth's example: a roofing company loses its only estimator, that costs $200,000 a week in revenue, a semi-retired consultant costs $10,000 for thirty days. Ask your own reports 'Have you done ITR on this?' until they arrive with it. It is working when small problems stop reaching your desk because the ITR showed they were small.
17:19:47-17:21:17 / X1QcR7CyTzFdlLfcTWoXFive-Whys root-cause analysis
Asking 'why did this happen?' five times in a row, each time about the previous answer, until you reach a cause you control rather than a symptom or an outside excuse.
How to practise: Take one failed decision and write the first 'why'. Then challenge that answer with another 'why' at least four more times. Audience respondents found the first answer was usually an assumption ('podcast hosts rejected my client') and the fifth was something inside their control (how the pitch was framed; personal greed and arrogant framing; being in a hurry). Repeat for every persistent problem. It is working when your answers shift from the market and other people to your own process.
17:27:05-17:27:25, 17:47:04-17:52:24 / X1QcR7CyTzFdlLfcTWoX, Flh03sjbLxAHoOKAR0ZmResponding to a bad outcome with responsibility, not blame or escape
Bet-David named three responses to a decision gone wrong: find someone to blame, find a safe space to escape, or process it by taking responsibility. Only the third builds a leader.
How to practise: When something breaks this week, run the three questions out loud: What happened? Whose responsibility was it? What do we need to do? Watch your managers for the same three questions. Before promoting anyone, check which of the three responses they default to. It is working when post-mortems in your company start with 'here is what I own'.
17:14:55-17:15:39 / X1QcR7CyTzFdlLfcTWoXClassifying a crisis and controlling its lifespan
Naming which of the eleven crisis types you are facing (health, technology, organizational, violence or revenge, defamation, financial, black swan, white swan, personal, natural, and market) and then managing the four things that lengthen or shorten it: strategy, poise, over-exaggeration and downplaying.
How to practise: When a problem lands, write its crisis type at the top of the page. Then ask: do we have a strategy, are we panicking, are we blowing this up, or are we waving it off? Assign people to the solution steps and set a check-in time. Review the last three crises this quarter and score how long each lasted versus how long it needed to.
17:16:10-17:19:45 / X1QcR7CyTzFdlLfcTWoXMaking values-first decisions (family, friends, schools)
Applying the same processing to personal choices: decide what matters most at this stage of life, then choose the option that delivers it even if another option scores higher on prestige.
How to practise: For the next major personal decision, write the one thing that matters most to you at this stage before you compare options. Bet-David chose a Christian private school over Florida's top academic school because values in the K-5 years mattered more than college placement, and he kept the option to switch later. Audit your close friendships once a year against the life you want to live.
17:21:26-17:26:25 / X1QcR7CyTzFdlLfcTWoXTraining by role-play instead of lecturing
Building leaders by cutting your talk to about twenty minutes and putting people into pairs or small groups where they must answer each other's questions, exactly as the workshop did.
How to practise: At your next team training, speak for twenty minutes, then run a structured exercise in groups of four with a written prompt, a time limit, and public read-outs. Bet-David built his insurance company on Tuesday and Saturday trainings plus Monday mornings, and said leaders only appeared when he stopped speaking for two or three hours. Grade the read-outs (par, birdie, eagle) to raise the bar.
17:54:38-17:55:34 / Flh03sjbLxAHoOKAR0ZmResolving a stuck partnership with valuation and a third party
When a partner has stopped contributing at the level their equity implies, move from 'regular level conversations' to a structured resolution: independent valuation, a fair offer to take cash off the table or to buy out, hard operating rules, and a neutral third party in the room.
How to practise: Map each partner's equity against their real contribution today. If they are out of line, get a fair valuation (one valuer you choose, one they choose, and one you both agree on, then settle in the middle). Decide what you would offer for the gap. Bring a consultant, coach or advisor to the conversation. Re-check contribution against equity every year.
18:21:00-18:26:22 / Flh03sjbLxAHoOKAR0ZmFrameworks, lists & numbers
Processing (definition)
The ability to make effective decisions based on access to the information at hand, with the highest odds in your favor. Life is about decisions; decisions are about odds; you need a system that gives you the best odds.
Three responses to a bad decision
1) Find somebody to blame. 2) Find a safe space to escape. 3) Process it by taking responsibility: What happened? Whose responsibility was it? What do we need to do? Only promote people who do the third.
The odds list
Going out of business within five years: 1 in 2. Being audited by the IRS: 1 in 160. Injured by a toilet: 1 in 10,000. Winning an Oscar: 1 in 11,500. Finding a pearl in an oyster: 1 in 12,000. Struck by lightning: 1 in 114,000. Dying in a plane crash: 1 in 205,000. Attacked by a shark: 1 in 3.748 million.
Cost of workplace conflict (Myers-Briggs / CPP study)
US employees spend 2.8 hours every week handling workplace conflict, which adds up to $359 billion in paid hours and 385 million lost working days a year.
Eleven types of workplace crisis (Tom Ellsworth)
Health (a pandemic, a board member falling ill); Technology (cybercrime, a phishing click in finance); Organizational (you have outgrown your structure, your only estimator quits); Violence (revenge from a former employee); Defamation (Glassdoor, Instagram); Financial (the CEO's personal finances, or a market squeeze like $5.50 diesel); Black swan (the PDF kills the fax machine); White swan (a change you can see coming, and you have the solution); Personal (a parent's illness pulls you away for a month); Natural (ice storms, hurricanes, evacuations); Market/leadership crises that follow from the others.
What lengthens or shortens a crisis
Shortens: a strategy, poise (no panic), knowing what is working and what is not, assigning people and moving through the solution, seeing five moves ahead. Lengthens: over-exaggerating a small problem, or downplaying a real one until it goes viral.
ITR: Investment, Time, Return
Work backwards. Return: what is the impact of the crisis (e.g. $200,000 a week in lost revenue with no estimator)? Time: how long to fix (e.g. thirty days)? Investment: what the fix costs (e.g. $10,000 for an interim consultant). Rule: nobody brings a crisis without the ITR.
Problem-solving flow (workbook page 118)
Problem at the top. Repeat issue? If yes, did the last solution work? If no, was it a money issue? Impact. Tier: address now? Signal or noise; score urgency. Root cause: five whys. Stakeholders who can help; was there buy-in or was it all on you? Top five ideas; which solves it now? Share with your team. Can this happen again? Close and archive, or flag as likely to restart.
Where processing applies (the 'solving for x' list)
Company, friendships, expansion, ideas, negotiations, selling, family, hiring, compensation, relationships, identity.
The 50/50 case facts
Two best friends, 50/50 equity and decisions, nine years in. Blake: sales and vision. Eric: operations and product. Revenue $32 million; needs $80 million in 36 months to stay relevant. Eric runs ops as he did at $8 million, does not read the books or attend events, takes 45 days of vacation a year. Three senior hires complained privately; two of Eric's reports quit; the biggest client called ops the weakest part. Blake has confronted Eric more than once; Eric agrees and nothing changes. Question: your next three to five moves.
Three-way valuation method
Pay for a fair valuation: one valuer you choose, one your partner chooses, one you both agree on. Take the middle number and use it to pay a partner cash for the equity points they are not earning.
The dinner outcome
A friend running a company doing about $1 billion a year went from roughly 25-35% ownership to 65% by giving a serious conversation or buyout to a 15% partner and a fair valuation and cash to a 40% partner doing 20% of the work. One partner left happy with a $1.5 million cheque; another later took a large payout. The company was later sold for about $2 billion.
The EBITDA-floor rescue
Two 50/50 best friends were at negative $300,000 EBITDA because the CEO wanted to spend everything. They agreed a floor of roughly 8-10% EBITDA; above it the operating partner could say no to spending. Last year the company did $14.9 million EBITDA.
Par, birdie, eagle grading
Bet-David graded every public answer: par means sound but expected, birdie means strong, eagle means something nobody else said. He cut off anyone who repeated an earlier answer and asked for specifics, not generalities.
What matters
24 insights, each with the moment it was said.
Processing means putting the odds in your favor, not being right every time
Bet-David defines processing as making effective decisions with the information at hand and the highest odds in your favor. A decision is a bet; you judge the process by the odds you had, not only the outcome. That frees you to review misses without shame and to keep deciding fast.
17:04:39-17:05:03 / X1QcR7CyTzFdlLfcTWoXYou already price odds on the biggest decisions in life
When you married someone you sized them up and, consciously or not, gave it a percentage. Business decisions deserve the same explicit estimate. Writing '60% this works' next to a decision makes your reasoning visible and reviewable later.
17:05:07-17:05:23 / X1QcR7CyTzFdlLfcTWoXThe odds of your business failing dwarf every scary odd you fear
One in two businesses fails within five years, against one in 160 for an IRS audit, one in 114,000 for lightning and one in 3.7 million for a shark attack. The point: spend your worry and your systems on the risk that is actually likely, which is the business itself.
17:05:26-17:06:16 / X1QcR7CyTzFdlLfcTWoXPeople only remember their wins, so force yourself to list the losses
When asked to list five decisions, almost the whole room listed successes. Bet-David made everyone add the decision from the last twelve months that cost them money. Your growth lives in that one line, not in the five you were proud of.
17:12:39-17:13:24 / X1QcR7CyTzFdlLfcTWoXMeasure speed of decision as well as accuracy
Inspect how often you are right, but also how quickly you decide compared with competitors in your industry, and how good your gut is at reading the political and market climate. A slow correct decision can still lose to a fast good-enough one.
17:14:31-17:14:55 / X1QcR7CyTzFdlLfcTWoXPromoting a blamer or an escaper multiplies the behavior
If you promote someone who habitually blames others or hides from decisions, you reward that behavior and it reappears with bigger responsibilities and far more noise for the company. Screen for responsibility-taking before any promotion.
17:15:08-17:15:31 / X1QcR7CyTzFdlLfcTWoXWorkplace conflict is a hidden line item worth billions
Bet-David cited a Myers-Briggs (CPP) study: US employees spend 2.8 hours a week handling workplace conflict, adding up to $359 billion in paid hours and 385 million lost working days a year. Better decision processes reduce the conflict that bad or avoided decisions create.
17:15:39 / X1QcR7CyTzFdlLfcTWoXThe number two's job is to be the boss's 'soft pillow at night'
Tom Ellsworth described his role as making sure the CEO knows crises are being handled. You still bring problems up, but you bring them a couple of steps closer to solution, with a proposed fix and a number attached.
17:16:10-17:16:30, 17:18:43 / X1QcR7CyTzFdlLfcTWoXA single click in finance is a crisis, so bring the fix with the report
Ellsworth's technology-crisis example is an employee clicking a phishing link that instructs a money transfer. Many in the room had lived it. The test of a good operator is arriving with 'here is what happened and here is how we have already contained it'.
17:16:35-17:16:50 / X1QcR7CyTzFdlLfcTWoXRevenge now looks like anonymous reviews five minutes apart
A former employee's revenge is often a burst of Glassdoor posts or Instagram content carrying your logo. Ellsworth told HR to check Glassdoor weekly, because what is downplayed on day one can have 50,000 likes by the next morning.
17:17:11-17:17:34, 17:19:27-17:19:41 / X1QcR7CyTzFdlLfcTWoXYour number two must know your personal stress points
A financial crisis can be personal: the CEO cannot inject the money the business expected. Ellsworth said the second-in-command has to understand where the boss is stretched so the company plans around it rather than being surprised.
17:17:38-17:17:47 / X1QcR7CyTzFdlLfcTWoXBlack swans kill product companies; white swans reward the prepared
You make the best fax machine in the world and in 2000 the PDF arrives: a black swan. A white swan is a change you can see coming, and the winner is the company that shows up with the solution. Sort your risks into the two buckets and prepare for the white ones.
17:17:59-17:18:13 / X1QcR7CyTzFdlLfcTWoXBoth over-exaggerating and downplaying stretch a crisis
One person blows a small pricing problem into a company-wide drama; another waves off an angry ex-employee until the post goes viral. Both extend the crisis. The cure is quantifying impact (the ITR) so the response matches the size of the problem.
17:19:10-17:19:41 / X1QcR7CyTzFdlLfcTWoXITR filters problems before they reach you
Once people habitually run Investment-Time-Return, they stop bringing small things to your desk because the numbers show they can just solve it. Leaders get fewer, better-quantified escalations and can say thank you for the solution instead of hunting for one.
17:20:44-17:21:17 / X1QcR7CyTzFdlLfcTWoXOne bad friend can undo a marriage, a business and a decade of habits
Bet-David cut a long friendship when the conversations ('we earned it') no longer matched the life he wanted. Like catching COVID, you rarely know exactly who infected you; you linger, then do something stupid, then see your kids once a week for nine years. Friend selection is a processing decision.
17:24:02-17:25:42 / X1QcR7CyTzFdlLfcTWoXChoose values over prestige when the window is short
For his kids' K-5 years, Bet-David chose a Christian school over Florida's most academically ranked one because faith and conservative values had to be installed before age 14, while an academic switch could be made later. Decide which outcome has a closing window and prioritise it.
17:21:44-17:23:59 / X1QcR7CyTzFdlLfcTWoXPersistent problems usually trace back to the operator
An affordable-housing developer whose vacancy soared after doubling his portfolio found, by the third or fourth why, that the cause was his own greed and arrogance ('we'll figure it out'), not the market. A homebuilder found $80,000 of losses came from truncating a 60-day diligence protocol because he was in a hurry.
17:51:28-17:53:41 / Flh03sjbLxAHoOKAR0ZmThe 'can this happen again?' box is the one that saves you
A virtual-assistant founder who had drowned himself by selling consulting at $7 an hour said the new final step in the flow, 'issue closed, archive, or will it start again?', was what stopped him from repeating it the next time he needed money.
17:49:43-17:50:19 / Flh03sjbLxAHoOKAR0ZmCasualness with your brand is a due-diligence failure too
After a problem with a title sponsor, Bet-David admitted his own team had grown too casual about protecting the brand and took diligence 'to a whole different level'. He contrasted it with 17 years and roughly one million insurance policies with no client lawsuit for wrongdoing. Diligence is a habit you can lose.
17:53:41-17:54:25 / Flh03sjbLxAHoOKAR0ZmA 50/50 partner does not have to do anything you propose
The room's plans all assumed the operations partner would agree to restructure, dilute or leave. Bet-David played the partner: 'No. I worked more than you for five years, I brought the four biggest accounts, next year I take 90 days off.' A plan that needs the other side's consent is not yet a plan.
18:17:15-18:18:26 / Flh03sjbLxAHoOKAR0ZmNobody in the room planned for the senior hires or the biggest client
Tom Ellsworth pointed out that every answer focused on the partner, while three senior hires who had complained and the biggest client who called ops the weakest link were ignored. The best public answer included stakeholder communications: 'this is my mess up, it won't happen again'.
18:15:57, 18:20:33-18:20:55 / Flh03sjbLxAHoOKAR0ZmSometimes the partner is waiting for you to cut a cheque
A friend hosted Bet-David for dinner and, through hypotheticals, got a plan: serious conversation or buyout for the 15% partner, fair three-way valuation and cash for the 40% partner doing 20% of the work. He went from about 35% to 65% ownership, one partner left happy with $1.5 million, and the company later sold for about $2 billion.
18:21:00-18:24:18 / Flh03sjbLxAHoOKAR0ZmA hard spending rule can save a partnership without anyone leaving
Two 50/50 best friends were at negative $300,000 EBITDA because the CEO spent everything. With a third party in the room they agreed on a floor (about 8-10% EBITDA); above it the operating partner could veto spending. That company reached $14.9 million EBITDA last year. The fix was a rule both sides owned, not a divorce.
18:24:35-18:26:22 / Flh03sjbLxAHoOKAR0ZmRecruit through a recruiter when you are easily charmed
One respondent said he would hire a recruiter to replace the partner rather than do it himself, because he likes people and can be influenced by the wrong personality. Knowing your own bias and designing it out is processing applied to yourself.
18:15:43-18:15:57 / Flh03sjbLxAHoOKAR0ZmClaude skills from this session
Each one is a SKILL.md Claude can run with you. Open to read; copy or download; drop into ~/.claude/skills/.
Exercises & frameworks to run
Steps and the finished output for each. Speaker exercises and our written-out steps are labelled.
Five-decision scorecard
- List the last five big decisions you made in the past few months (Bet-David's range: $10,000 to $10 million at stake).
- Write the dollar amount next to each.
- Score each decision 3, 5 or 10 for how good the decision turned out to be.
- Mark whether the set is all positive, all negative or mixed. If you only wrote wins, you are not done.
- Add the one decision from the last twelve months that cost you money or went against you. Keep it for the next exercise.
Finish with: A scored record of five decisions plus one identified failure to dissect.
Evidence: 17:06:19-17:13:24 / X1QcR7CyTzFdlLfcTWoXDecision track-record inspection
- Using your scorecard, count how many of the five went the way you wanted.
- For each, note how long you took to decide and whether a competitor would have moved faster.
- Rate your gut: did your instinct about the market, the people or the political climate hold up?
- For each miss, write which of the three responses you gave: blame, escape, or responsibility.
- Write one sentence on the pattern you see.
Finish with: A one-paragraph honest read on how often, how fast and how responsibly you decide.
Evidence: 17:14:31-17:15:39 / X1QcR7CyTzFdlLfcTWoXThe ITR crisis screen
- Start with Return: what is the impact of this crisis per week or per month if nothing changes? Put a dollar figure on it (example: no estimator means no bids, so $200,000 a week in lost revenue).
- Then Time: how long will the fix take? (Example: thirty days with an interim consultant.)
- Then Investment: what does the fix cost? (Example: $10,000 for a semi-retired estimator as an emergency consultant.)
- Write the three numbers on one line and compare Return to Investment.
- Bring the problem to your leader with the ITR attached, or, if the Return is small, just solve it and do not escalate.
Finish with: A one-line, quantified case for action (or a decision not to escalate).
Evidence: 17:19:47-17:21:17 / X1QcR7CyTzFdlLfcTWoXBad-decision problem-solving flow (the workbook page 118 flow)
- Write the problem at the top of a page.
- Ask: is it a repeat issue? If yes, did the last solution work? If no, investigate: was it a money issue?
- Write the impact and the tier: is this something we must address now? Decide if it is signal or noise, and score its urgency.
- Root cause: ask why the problem happened, then ask why of that answer, five times, until you reach the real cause.
- List the stakeholders who can help fix it. Was there buy-in, or was it all on you?
- List your top five ideas to fix it and pick the one that solves it now.
- Share the plan with your team. Then answer: can this happen again? Close and archive it, or flag it as likely to restart.
Finish with: A completed one-page analysis of a failed decision with a chosen fix and a recurrence flag.
Evidence: 17:26:33-17:27:54 / X1QcR7CyTzFdlLfcTWoXPattern review in a group of four
- Form a group of four, ideally with people you have not worked with before.
- Each person shares the failed decision they ran through the flow, in two minutes.
- The group names the pattern: what could you do better next time you make a decision like that?
- Each person writes down one rule they will apply to the next decision of that type.
- Pick one specific (not general) lesson to share with the wider team.
Finish with: One personal decision rule per person and one specific lesson for the team.
Evidence: 17:34:33, 17:46:56 / Flh03sjbLxAHoOKAR0ZmCrisis classification and lifespan audit
- List the last three crises your company faced.
- Label each with its type: health, technology, organizational, violence or revenge, defamation, financial, market, black swan, white swan, personal, natural.
- For each, note how long it lasted and which factor stretched it: no strategy, panic, over-exaggeration, or downplaying.
- Write the ITR you should have had at the start.
- For the two crisis types most likely to hit you next year, write who owns the response and what the first three moves are.
Finish with: A one-page crisis map with owners and first moves for your two most likely crisis types.
Evidence: 17:16:30-17:19:45 / X1QcR7CyTzFdlLfcTWoXThe 50/50 partnership case (run it with your own leadership team)
- Read the facts: two best friends, 50/50 equity and decisions. Blake runs sales and vision, Eric runs operations and product. Revenue is $32 million; to stay relevant they need $80 million in 36 months. Eric runs ops the way he did at $8 million, does not read the books or attend the events, and takes 45 days of vacation a year. Three senior hires complained privately; two of Eric's direct reports quit; the biggest client called ops the weakest part of working with the company. Blake has confronted Eric more than once; Eric agrees every time and nothing changes.
- You are Blake. In groups, write your next three to five moves for the next five weeks.
- Stress-test every move with Bet-David's question: what if Eric simply says no?
- Add moves for the two forgotten stakeholders: the senior hires who complained and the biggest client.
- Present and grade each plan: par (sound), birdie (strong), eagle (something nobody else said).
Finish with: A five-move plan that survives a partner refusing to cooperate and covers staff and client fallout.
Evidence: 17:55:34-18:20:55 / Flh03sjbLxAHoOKAR0ZmEquity-versus-contribution map for your own partnership
- Write each partner's equity percentage in one column.
- In the next column, write honestly what percentage of the value created today comes from each partner.
- Where the gap is large, ask whether that partner would like to take cash off the table.
- Draft the valuation process: one valuer you choose, one they choose, one you both agree on, settle in the middle.
- Decide what a serious conversation, a buyout offer, or a new operating rule (such as an EBITDA floor with veto rights) would look like.
- Name the third party you would bring into the room.
Finish with: A written picture of where equity and contribution diverge and a resolution path for each partner.
Evidence: 18:22:36-18:26:22 / Flh03sjbLxAHoOKAR0ZmTwenty-minute training redesign
- Take your next scheduled team training and cut your speaking to twenty minutes.
- Write one prompt or case study with a clear question ('what are your next three to five moves?').
- Split people into groups of four with a time limit.
- Have groups line up and present; interrupt anyone who repeats an earlier answer and ask for something new.
- Grade answers publicly (par, birdie, eagle) and close with a real story that shows how it played out.
Finish with: A repeatable training format that develops leaders instead of listeners.
Evidence: 17:54:38-17:55:34, 18:16:44 / Flh03sjbLxAHoOKAR0ZmWhat to do — and how often
Your checkmarks are saved on this device and shared with the Playbook.
- Once, this week speaker-statedEvidence: 17:06:19-17:06:38 / X1QcR7CyTzFdlLfcTWoX
- Once, this week speaker-statedEvidence: 17:13:00, 17:26:33-17:27:54 / X1QcR7CyTzFdlLfcTWoX
- Every quarter our recommendationEvidence: 17:14:31-17:14:41 / X1QcR7CyTzFdlLfcTWoX
- Once, this week, then enforced on every escalation speaker-statedEvidence: 17:20:44-17:20:55 / X1QcR7CyTzFdlLfcTWoX
- Weekly speaker-statedEvidence: 17:17:20-17:17:34 / X1QcR7CyTzFdlLfcTWoX
- At every promotion decision our recommendationEvidence: 17:15:08-17:15:31 / X1QcR7CyTzFdlLfcTWoX
- Once, this month, and whenever your situation changes our recommendationEvidence: 17:17:38-17:18:27 / X1QcR7CyTzFdlLfcTWoX
- Once, this month; then on every acquisition or major purchase our recommendationEvidence: 17:52:32-17:53:41 / Flh03sjbLxAHoOKAR0Zm
- Every training session (Bet-David ran Tuesdays, Saturdays and Monday mornings) speaker-statedEvidence: 17:54:38-17:55:13 / Flh03sjbLxAHoOKAR0Zm
- Once, within the next month speaker-statedEvidence: 18:24:08-18:24:33, 18:26:22 / Flh03sjbLxAHoOKAR0Zm
- Once, before the partner conversation speaker-statedEvidence: 18:23:09-18:23:22 / Flh03sjbLxAHoOKAR0Zm
- Once, this quarter; review annually our recommendationEvidence: 18:25:47-18:26:13 / Flh03sjbLxAHoOKAR0Zm
- Once a year our recommendationEvidence: 17:24:02-17:25:42 / X1QcR7CyTzFdlLfcTWoX
Quotes in context
“You need a system that helps you make the best possible decision with the best possible odds in your favor.”
Patrick Bet-DavidDefining 'processing' as a repeatable decision system.17:05:03 · X1QcR7CyTzFdlLfcTWoX
“The key is to inspect the track record of our decision making process. How often we make the right decision?”
Patrick Bet-DavidWhy he made the room score their last five decisions.17:14:31 · X1QcR7CyTzFdlLfcTWoX
“Before you bring me crises or you bring me big problems, bring me also the ITR.”
Tom EllsworthThe one instruction to give your team about escalating problems.17:20:44 · X1QcR7CyTzFdlLfcTWoX
“If your people are in the habit of using ITR, they may not even bring some stuff to your desk because it turns out to be small.”
Tom EllsworthThe side benefit of quantifying every crisis.17:21:05 · X1QcR7CyTzFdlLfcTWoX
“We chose values and principles over this other one that scores higher on academia.”
Patrick Bet-DavidChoosing a Christian school over Florida's top academic school for his children.17:23:18 · X1QcR7CyTzFdlLfcTWoX
“All of us have one friend in our lives that can destroy our marriage, our business, our lives, our habits. One bad friend can destroy your life.”
Patrick Bet-DavidFriendship as a processing decision.17:24:58 · X1QcR7CyTzFdlLfcTWoX
“We have to find out when our grandchildren are good citizens. Till then, we're all average fathers.”
Patrick Bet-DavidWhy he refuses to claim his own decisions are proven right yet.17:26:06 · X1QcR7CyTzFdlLfcTWoX
“Decision making helps you prevent some additional noise in your life you don't need.”
Patrick Bet-DavidThe payoff of processing well.17:26:25 · X1QcR7CyTzFdlLfcTWoX
“Why ask five times and go deeper? Why why why why? Until you get to the root cause of the why.”
Patrick Bet-DavidThe root-cause step in the problem-solving flow.17:27:17 · X1QcR7CyTzFdlLfcTWoX
“When all of a sudden, I spoke for 20 minutes and everybody was role-playing with each other, we all of a sudden build a bunch of leaders.”
Patrick Bet-DavidHow he built leaders in his insurance company.17:54:56 · Flh03sjbLxAHoOKAR0Zm
“He is no longer a great operator at this scale, and Blake, his partner, his best friend, the guy who shook his hand nine years ago, he knows it.”
Case study video narratorThe heart of the 50/50 partnership case.17:57:31 · Flh03sjbLxAHoOKAR0Zm
“This is who you are. This is who you've proven yourself to be and this is who you're not.”
Audience case respondentHow to open the critical conversation with a partner.18:15:08 · Flh03sjbLxAHoOKAR0Zm
“You can't just say, oh, we need to do this, this, this. Life doesn't work that way with 50-50 partnerships.”
Patrick Bet-DavidAfter playing the partner who simply refuses every proposal.18:17:56 · Flh03sjbLxAHoOKAR0Zm
“Now, none of us have brought up the senior hires that have complained.”
Tom EllsworthThe stakeholders every group forgot.18:20:37 · Flh03sjbLxAHoOKAR0Zm
“But sometimes a person is going to be waiting for you to cut a check for a decision to be made.”
Patrick Bet-DavidThe lesson of the dinner where a friend bought his partners out.18:24:08 · Flh03sjbLxAHoOKAR0Zm
“Because they figured out a way to make it work and it was on both parties.”
Patrick Bet-DavidThe founder pair who went from negative $300,000 to $14.9 million EBITDA after agreeing a spending rule.18:26:13 · Flh03sjbLxAHoOKAR0Zm
Questions to ask yourself
- What were my last five big decisions, and how would I honestly score each one?
- Which decision in the last twelve months cost me money, and have I ever dissected it?
- When a decision goes wrong, do I blame, escape, or take responsibility? Which do my managers do?
- How fast do I decide compared with my competitors, and is my gut read on the market actually good?
- For the crisis on my desk right now, what is the return, the time, and the investment?
- Am I over-exaggerating this problem or downplaying it?
- If I ask why five times about my most persistent problem, does it end up at me?
- Which of my partners is being paid for a contribution they no longer make, and what would I offer to fix it?
- If my partner simply says no to everything I propose, what is my plan?
- Which one friend in my life could cost me my marriage, my business or my habits?
- What matters most at this stage of my family's life, and does my biggest personal decision serve it?
Watch-outs
- Listing only your successful decisions and never the one that cost you money.
- Promoting someone who habitually blames or escapes; the behavior scales with the title.
- Bringing a crisis to the boss without an ITR, so every problem sounds equally urgent.
- Stopping at the first 'why' (an assumption about other people) instead of digging to the cause you control.
- Downplaying an angry ex-employee's post until it has 50,000 likes and your logo on it.
- Skipping or shortening due diligence because you are in a hurry and the deal looks great (it cost one builder about $80,000).
- Selling your expertise at a commodity price ($7 an hour) because you needed cash, then drowning in the work.
- Making a partnership plan that assumes the other partner will agree, when a 50/50 partner can simply refuse.
- Focusing the whole plan on the partner and forgetting the senior hires who complained and the biggest client.
- Having 'regular level conversations' for years when the partner is actually waiting for a cheque.
- Talking for two or three hours in training and wondering why no leaders emerge.