Satisficing. The Key to Smarter Decision-Making.

“Are You Wasting Time on the Wrong Decisions? Here’s How to Decide Smarter”

Every day, as a business owner or entrepreneur, you’re faced with countless decisions—some big, some small. From choosing the right software for your business to deciding on a marketing strategy, each choice impacts your efficiency, profitability, and long-term success. But how do you know when to keep searching for the best possible option and when to settle for something that’s “good enough”?

This is where Herbert Simon’s concept of Satisficing comes in. Instead of endlessly searching for perfection, Satisficing helps you make efficient, practical decisions that meet your needs without unnecessary delay. It contrasts with Maximising, where you strive to find the absolute best option—even if it requires significantly more time, energy, and resources.

Who Was Herbert Simon?

Herbert Simon (1916–2001) was an American economist, psychologist, and political scientist best known for his groundbreaking work in decision-making, artificial intelligence, and organizational behaviour. He introduced the concept of bounded rationality, which explains how people make decisions with limited information and time.

His Satisficing theory revolutionised economics and business strategy by showing that people often settle for “good enough” choices rather than optimal ones due to real-world constraints. Simon’s contributions earned him the Nobel Prize in Economic Sciences in 1978. His work continues to influence business, management, and cognitive psychology today.

Imagine you’re looking for a new customer relationship management (CRM) tool. A Maximiser might spend weeks researching every option, comparing pricing, reading endless reviews, and testing multiple platforms. A Satisficer, on the other hand, sets clear criteria—must be affordable, integrate with existing tools, and have great customer support—and chooses the first option that meets those standards.

Neither approach is wrong, but the key to effective decision-making is knowing when to Satisfice and when to Maximise. If you spend too long searching for the perfect choice in every decision, you risk wasting time and delaying progress. On the other hand, if you always settle for “good enough,” you might miss out on major competitive advantages.

This blog will break down:

✅ What Satisficing is and how it differs from Maximizing
✅ When to apply Satisficing for faster, more efficient decision-making
✅ When you must Maximize to ensure long-term business success
✅ How to balance both strategies for smarter decisions

By the end, you’ll know exactly which decision-making model to use in different situations so you can work smarter, move faster, and grow your business with confidence. 

1. Understanding Satisficing: Herbert Simon’s Theory

In an ideal world, you would have unlimited time, resources, and knowledge to find the absolute best solution for every business decision. But reality doesn’t work that way. You often face time constraints, incomplete information, and competing priorities—making it impossible to analyse every possible option before choosing. This is where Herbert Simon’s concept of Satisficing comes in.

What Is Satisficing?

Satisficing is a decision-making approach where you select an option that meets your predefined acceptable criteria, rather than spending excessive time searching for the perfect choice. Instead of optimising, you focus on finding a “good enough” solution that allows you to move forward efficiently without getting stuck in endless analysis.

Simon introduced this concept in response to the idea of bounded rationality—the idea that human decision-making is limited by available information, cognitive capacity, and time constraints. While maximising (finding the absolute best choice) may seem ideal, it is often impractical in real-world scenarios where decisions must be made quickly and efficiently.

Why Do We Satisfice?

You Satisfice because perfection is costly—both in terms of time and effort. Consider these three key factors:

1️⃣ Cognitive Limitations: Your brain can only process so much information before it becomes overwhelmed. Trying to analyse too many options can lead to decision fatigue and delays.

2️⃣ Time Constraints: In business, speed matters. Spending weeks choosing the “best” option could mean missing opportunities, losing customers, or falling behind competitors.

3️⃣ Limited Information: You rarely have perfect knowledge when making decisions. Satisficing allows you to make progress even when all the facts aren’t available.

Example: Satisficing in Business Decision-Making.

Let’s say you’re a small business owner looking for accounting software. You need something that:

✔ Tracks expenses and invoices
✔ Integrates with your bank
✔ Is easy to use
✔ Fits within your budget

A Maximiser would research every accounting software on the market, compare pricing models, read hundreds of reviews, and test multiple platforms before making a choice. This could take weeks or even months, delaying important financial tasks.

A Satisficer, on the other hand, sets clear criteria and chooses the first option that meets their needs—for example, QuickBooks or Xero—and moves forward with the implementation. The software might not be perfect, but it’s good enough to get the job done without unnecessary delays.

This approach allows you to free up mental energy and focus on growing your business, rather than wasting time in an endless search for perfection.

Key Takeaway:

Satisficing helps you make practical, efficient decisions that move your business forward without getting stuck in analysis paralysis. While it may not always produce the absolute best outcome, it ensures that you don’t waste valuable time chasing perfection when a good solution is already available.

2. The Difference Between Satisficing and Maximising.

When making decisions, you generally have two approaches: satisficing or maximising. The choice between these two strategies depends on the situation, available resources, and the importance of the decision. While maximising aims for the absolute best option, satisficing focuses on finding a solution that is “good enough” to meet your needs.

What is Maximising?

Maximising is the decision-making approach where you search exhaustively for the best possible option before making a choice. It involves:

✅ Extensive research and comparison of multiple options.
✅ Analysing detailed data and conducting risk assessments.
✅ Taking time to ensure the absolute best decision is made.

Maximising is ideal when the stakes are high, and you need optimal results. However, it requires more time, energy, and effort, which may not always be practical.

What is Satisficing?

Satisficing, on the other hand, is about choosing the first option that meets predefined acceptable standards, rather than spending excessive time searching for the absolute best. This approach:

✅ Saves time by reducing research and decision fatigue.
✅ Allows for faster implementation, helping businesses move forward.
✅ Helps avoid “paralysis by analysis”—getting stuck in endless comparisons.

Satisficing is useful when speed is more important than perfection, and the decision doesn’t require an optimal outcome to be effective.

Trade-Offs Between Maximising and Satisficing.

Example: Choosing a Supplier.

Imagine you’re a business owner looking for a supplier for your raw materials.

💡 Maximising Approach:
You conduct an extensive global search, analyse every possible supplier, negotiate contracts, compare costs, and spend months finding the absolute cheapest, highest-quality supplier.

💡 Satisficing Approach:
You set clear criteria: the supplier must be affordable, reliable, and meet delivery deadlines. You choose the first supplier that meets these standards, allowing you to move forward quickly without excessive delays.

When Should You Maximise vs. Satisfice?

✔ Maximise when:

• Making high-impact, long-term decisions (e.g., major business investments, hiring key executives, signing long-term contracts).
• Competitive advantage depends on the best option (e.g., product development, pricing strategies).
• You have time and resources to optimise without disrupting business operations.

✔ Satisfice when:

• Making routine or low-stakes decisions (e.g., choosing marketing software, picking office suppliers).
• Speed matters more than perfection (e.g., responding to customer service issues, or launching time-sensitive campaigns).
• You have limited information or resources and need to move forward efficiently.

Key Takeaway:

Both Maximising and Satisficing have their place in business decision-making. The key is knowing when to optimise for the best and when to make an efficient, practical choice.

3. When to Use Satisficing in Decision-Making.

Satisficing is an efficient and practical approach when making decisions that don’t require perfection or where speed and efficiency outweigh exhaustive research. Instead of spending excessive time and energy searching for the absolute best solution, satisficing helps you move forward quickly with a choice that meets acceptable standards.

Below are five key scenarios where satisficing is the best approach:

✅ 1. Everyday Business Operations

Not every decision in your business requires deep analysis. Many day-to-day operational choices don’t have a significant long-term impact, making Satisficing the most efficient approach.

🔹 Example: You need to choose a printing company for business cards. Instead of spending days comparing dozens of options, you go with the first provider that meets your budget, turnaround time, and quality standards. The difference between the “best” and “good enough” choice is minimal, so spending extra time searching isn’t justified.

📌 Why Satisfice? These types of choices don’t impact overall business strategy, so efficiency matters more than optimisation.

✅ 2. Fast Decision-Making Situations

In many cases, delaying a decision costs more than making a quick, good enough choice. If a decision is time-sensitive, satisficing allows you to move forward without unnecessary delays.

🔹 Example: Your business needs to hire a freelance graphic designer to complete a project by the end of the week. You receive several applications—rather than spending days evaluating every portfolio, you choose the first candidate who meets your budget, has solid reviews, and can deliver on time.

📌 Why Satisfice? Overanalysing slows down execution and can cause missed deadlines or lost revenue opportunities.

✅ 3. Limited Resources (Time, Money, or Data Constraints)

Many businesses operate under constraints, whether it’s budget limitations, time pressure, or incomplete information. In these cases, satisficing helps you make the best possible decision with the resources available.

🔹 Example: You need new project management software but have a small budget. Instead of conducting an exhaustive search for the absolute best tool, you choose one that meets your needs, fits within your budget, and integrates with your workflow.

📌 Why Satisfice? A satisficing approach allows you to move forward without overextending resources, and you can always upgrade later if needed.

✅ 4. Diminishing Returns

Sometimes, continuing to research or optimise a decision won’t significantly improve the outcome. If additional effort yields only marginal benefits, it’s better to Satisfice and move on.

🔹 Example: Your marketing team is debating between two nearly identical ad designs. They’ve already spent days testing variations, and there’s no clear winner. Rather than spending more time tweaking, you pick the one that performed slightly better and launch the campaign.

📌 Why Satisfice? The extra time spent searching for perfection delays progress while offering little additional value.

✅ 5. Low-Stakes Decisions

Some decisions aren’t worth overthinking. If the consequences of making a less-than-perfect choice are minor, satisficing saves you from wasting time.

🔹 Example: You’re picking a colour for your company’s new brochure. You narrow it down to two options—blue or green. Rather than endlessly debating, you go with blue and move forward with printing.

📌 Why Satisfice? Small decisions don’t justify in-depth analysis, and you can adjust later if necessary.

Key Takeaway:

Satisficing is not about settling for mediocrity—it’s about being smart with your time, effort, and resources. In routine, time-sensitive, or low-stakes decisions, satisficing eliminates decision fatigue and keeps your business moving forward efficiently.

4. When You Must Maximise Your Decision.

While satisficing helps you make quick, efficient decisions, there are times when you must maximise—when settling for “good enough” isn’t an option. In high-stakes situations, choosing the absolute best option can mean the difference between business growth and failure.

Maximising requires in-depth research, thorough comparisons, and long-term strategic thinking. Here are the key situations where you must maximise instead of satisficing:

Strategic Business Moves.

When making major business decisions that affect your company’s future, choosing the best possible option is critical. These choices have long-term consequences, so taking the time to maximise is necessary.

🔹 Example: Your company is expanding into a new market. Instead of picking the first available location or strategy, you conduct extensive research, analyse customer demographics, and assess competitive landscapes to ensure the best possible expansion plan.

📌 Why Maximise? Poor strategic decisions can cost millions or lead to business failure, so optimising every detail is crucial.

Hiring Key Talent.

Some roles have too much significant influence on your business to leave hiring to chance. The right person can drive growth, while the wrong person can cripple your operations.

🔹 Example: You need to hire a Chief Marketing Officer (CMO) to lead your company’s branding and growth strategy. Instead of hiring the first qualified candidate, you conduct multiple rounds of interviews, analyse leadership skills, and compare experience levels to find the absolute best fit.

📌 Why Maximise? Senior executives shape company direction, and hiring the wrong person can lead to mismanagement, poor strategy, and lost revenue.

Major Investments and Financial Decisions.

Big financial decisions—whether in acquisitions, investments, or long-term partnerships—require careful analysis, risk assessment, and comparison. These decisions impact profitability and sustainability, so maximizing is a must.

🔹 Example: Your company is acquiring another business to expand market share. Instead of rushing into the deal, you conduct a thorough financial analysis, assess liabilities, review long-term projections, and negotiate the best price.

📌 Why Maximise? Financial mistakes can drain resources, cripple cash flow, and harm business stability.

High-Stakes Legal and Compliance Decisions.

Legal and compliance issues must be handled with absolute precision. Cutting corners or choosing an option that is merely “good enough” can result in costly lawsuits, regulatory fines, or reputational damage.

🔹 Example: Your company is negotiating a high-value contract with a new partner. Instead of quickly signing off, you hire legal experts, analyse every clause, and ensure the contract protects your business from potential risks.

📌 Why Maximise? A single bad contract or regulatory mistake can result in significant financial loss and legal trouble.

Innovation and Product Development

If your business depends on innovation, technology, or product quality, maximising ensures you create a competitive edge and satisfy customer expectations.

🔹 Example: You’re launching a new software product. Instead of rushing the release with an incomplete version, you conduct rigorous testing, optimise performance, and ensure every feature meets user expectations.

📌 Why Maximise? Customers expect high-quality, innovative solutions—delivering subpar products damages your reputation and weakens your market position.

Key Takeaway:

Maximising is essential when making high-impact, long-term business decisions where:

✅ A mistake could cause major financial loss
✅ The decision affects long-term company growth
✅ It involves hiring key leaders or forming critical partnerships
✅ Legal, regulatory, or compliance risks exist
✅ Your brand, reputation, or customer trust is at stake

While satisficing keeps your business moving efficiently, maximising ensures critical decisions are made with precision to secure the best possible outcomes.

5. How to Apply Satisficing and Maximizing for Smarter Decision-Making.

Now that you understand when to Satisfice and when to Maximise, the next step is learning how to apply both approaches effectively. Making smarter decisions means balancing efficiency and thoroughness—knowing when to act quickly and when to invest time in finding the best solution.

Here’s how you can make better decisions in business by strategically using both Satisficing and Maximising:

✅ 1. Set Clear Criteria Before Making a Decision

One of the biggest mistakes in decision-making is not knowing what you’re looking for. Before you begin evaluating options, define clear, measurable criteria for what makes a decision acceptable.

🔹 Example (Satisficing): You need to purchase a CRM tool for your business. Instead of comparing every available option, you set minimum criteria:

✔ Must integrate with existing tools
✔ Costs under $50/month
✔ User-friendly interface
✔ Provides customer support

📌 Why It Works: With clear criteria, you can stop searching as soon as you find an option that meets your needs, avoiding unnecessary analysis.

🔹 Example (Maximising): You’re selecting a manufacturing partner for a large-scale production deal. Since this decision has long-term financial implications, you maximise by:

✔ Evaluating multiple suppliers
✔ Conducting quality assessments
✔ Negotiating pricing and terms
✔ Reviewing long-term scalability

📌 Why It Works: A structured, well-defined decision-making process ensures you find the best possible solution for a high-stakes decision.

✅ 2. Use Decision-Making Frameworks.

Applying structured decision-making models can help you avoid bias, speed up evaluation, and improve decision quality. Two effective frameworks are:

📌 The Pareto Principle (80/20 Rule)

• Focuses on finding the 20% of options that provide 80% of the value.
• Helps prioritise high-impact choices rather than getting lost in minor details.

🔹 Example: When reviewing marketing strategies, instead of analysing every possibility, you focus on the top-performing 20% (e.g., paid ads, email campaigns) that drive most of your leads.

📌 Weighted Decision Matrices

• Assign scores to different factors in a decision.
• Helps remove subjectivity by comparing choices based on data.

🔹 Example: When choosing a supplier, you assign weights to different factors (e.g., cost = 40%, reliability = 30%, shipping speed = 20%, customer service = 10%) and calculate scores for each vendor to determine the best choice.

✅ 3. Balance Speed and Accuracy.

Not every decision needs endless research. Learn to distinguish when extra analysis adds value versus when it just wastes time.

🔹 Example (Satisficing): Choosing business travel accommodations—a hotel that’s clean, well-rated, and affordable is good enough. Spending hours searching for the absolute best option wastes time with little real benefit.

🔹 Example (Maximising): Choosing an investor for your business—requires deep evaluation because their involvement impacts long-term growth, equity, and control.

📌 Key Lesson: The bigger the impact, the more time and effort should go into the decision.

✅ 4. Limit Choice Overload to Reduce Decision Fatigue

The more choices you have, the harder it becomes to decide. Too many options cause analysis paralysis, leading to delays and second-guessing.

🔹 Example: Instead of evaluating 20 potential software tools, narrow it down to 3-5 strong contenders based on essential criteria before comparing in detail.

📌 Why It Works: Less mental clutter = faster, more confident decision-making.

🔹 Tip: Use defaults when possible. If you’re reordering supplies, stick with a proven vendor rather than reopening the decision every time.

✅ 5. Test and Iterate: Improve Over Time

One of the biggest advantages of Satisficing is that you can course-correct later if needed. Instead of delaying a decision indefinitely, take action, monitor results, and refine your choice over time.

🔹 Example: You’re hiring a social media manager. Instead of waiting for the perfect candidate, you choose a solid applicant who meets 80% of your criteria. If their performance isn’t ideal, you can adjust their role, provide training, or hire again later.

📌 Why It Works: Progress is better than perfection. Taking action reduces risk, and you can adjust based on real-world data rather than hypothetical concerns.

Key Takeaway:

Becoming a better decision-maker means knowing when to maximize and when to satisfice. Use structured decision-making techniques, set clear criteria, limit distractions, and remember:

✔ Not every decision requires perfection.
✔ Efficiency is just as important as accuracy.
✔ Taking action today beats waiting for the perfect option tomorrow.

Final Word: Mastering the Art of Smart Decision-Making

Every day, you face a series of decisions—some small and routine, others complex and high-stakes. Understanding when to Satisfice and when to Maximise is the key to making smarter, faster, and more effective choices that drive business success.

• Satisficing helps you move forward efficiently when speed and practicality matter more than perfection.
• Maximising ensures you optimize critical, high-impact decisions that shape your company’s long-term success.
• The real power lies in knowing when to use each approach—balancing speed, accuracy, and strategic focus.

When you apply clear decision-making frameworks, set defined criteria, and eliminate unnecessary complexity, you remove hesitation and make choices with confidence. Instead of feeling overwhelmed, you’ll streamline your decision-making process, avoid wasted time, and consistently achieve better outcomes.

Your Next Step. Are You Ready to Take Control of Your Decision-Making?

The best business leaders aren’t just lucky—they have structured systems for making smart choices. That’s exactly what you’ll learn in Decision-Making Mastery—a step-by-step course designed to help you:

✅ Cut through uncertainty and make confident, strategic decisions.
✅ Eliminate decision fatigue and reduce second-guessing.
✅ Apply proven frameworks to maximise success and minimise risk.

Stop letting indecision hold you back. Enroll in the Decision-Making Mastery course today!

👉 Join the course now and start making better business decisions today! Just hit the button below.