REWORK

It's All a Judgment Call

Feb 7, 2024

Jason Fried and David Heinemeier Hansson, co-founders of 37signals, discuss the interplay between intuition and data-driven decisions in business. They emphasize the limitations of relying solely on data and the importance of trusting your gut. They explore the role of market feedback, the value of experience and judgment, and the power of pricing experiments. They also touch on accepting uncertainty, embracing momentum, and the concept of 'try it and see' in decision-making.

22:36

Episode guests

Jason Fried

David Heinemeier Hansson

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Quick takeaways

Experience and judgment play a crucial role in making sound decisions, and hiring executives based on their judgment and experience is more important than technical expertise.

Trusting one's gut and intuition in business, after years of experience and varied inputs, can lead to effective decision-making, contrasting with individuals who rely heavily on rationality and statistical analysis.

Deep dives

The Importance of Judgment Calls in Decision Making

In this podcast episode, Jason Freed discusses the significance of judgment calls in decision making. He stresses that relying solely on data-driven decisions removes the human element from the equation. Experience and judgment, according to Jason, play a crucial role in making sound decisions. He highlights the importance of hiring executives with good judgment and experience rather than just technical expertise. Jason argues that experience is a valuable asset that influences one's point of view and enables them to make effective, nuanced decisions.

The Value of Judgment Calls in Decision Making

01:05

Rigorous Methods in Social Sciences and Business Insights

01:37

Introduction

2min

The Importance of Trusting Your Gut in Business Decision Making

6min

The Role of Judgment Calls and the Uncertain Nature of Data

4min

Pricing Experiments and Intuition

8min

The Power of 'Sleeping On It' and Making Clear Choices

3min

Chances are, you've heard Jason Fried and David Heinemeier Hansson stress the vital role of trusting your instincts in business.

This week, host Kimberly Rhodes takes a deeper dive into the heart of human decision-making with the co-founders of 37signals—exploring how the interplay of intuition and accumulated experiences becomes your compass for navigating the complex landscape of business decisions.

Join Jason and David as they unravel the intricate dance between data-driven decisions and the art of making judgment calls, guiding listeners through trusting your gut and breaking free from external pressures when making product and pricing decisions.

Listen in to discover how the power of experimentation and the 'try it and see' approach often unveil valuable insights, with reality as the ultimate judge.

Check out the full video episode on YouTube

Key Takeaways:

[00:28] - The limitations of data-driven decisions

[03:00] - The magic of intuition and the black-box nature of gut decisions

[04:53] - The role of market feedback in evaluating the effectiveness of decisions

[06:39] - Cutting through the noise in decision making

[09:00] - Experience and judgment in decision making

[11:39] - Testing pricing and the importance of experimentation

[15:45] - The crucial role of gut feelings

[17:51] - Accepting uncertainty and avoiding perfectionism

[21:10] - Utilizing momentum and adopting a 'try it and see' approach

Rework is a production of 37signals. You can find show notes and transcripts on our website. Full video episodes are available on YouTube and X.

If you have a question for Jason or David about a better way to work and run your business, leave us a voicemail at 708-628-7850 or email, and we might answer it on a future episode.

Links and Resources:

From Jason's HEY World: It’s all a judgment call

Books by 37signals

HEY World | HEY

The REWORK podcast

The Rework Podcast on YouTube

The 37signals Dev Blog

37signals on YouTube

@37signals on X

37signals on LinkedIn