Simple Rules by Donald Sull and Kathleen M. Eisenhardt

Last updated: Jul 7, 2023

Summary of Simple Rules by Donald Sull and Kathleen M. Eisenhardt

Simple Rules: How to Thrive in a Complex World, written by Donald Sull and Kathleen M. Eisenhardt, is a book that explores the concept of simple rules and how they can be used to navigate and succeed in a complex and unpredictable world. The authors argue that in today's fast-paced and ever-changing environment, traditional approaches to decision-making and problem-solving are often ineffective. Instead, they propose that simple rules can provide a more flexible and adaptable framework for making decisions and taking action.

The book begins by explaining the limitations of traditional approaches, such as relying on extensive data analysis or following rigid procedures. Sull and Eisenhardt argue that these methods are often too slow, too complex, and too rigid to effectively address the challenges of a complex world. They introduce the concept of simple rules as a way to overcome these limitations.

Simple rules are defined as a small set of guidelines or principles that are easy to understand and apply. They are not meant to be comprehensive or exhaustive, but rather to provide a framework for making decisions and taking action quickly and effectively. The authors emphasize that simple rules should be tailored to the specific context and goals of the individual or organization using them.

The book then explores different types of simple rules that can be used in various situations. These include boundary rules, which define what is acceptable and what is not; prioritizing rules, which help determine where to focus time and resources; and stopping rules, which provide guidelines for when to stop pursuing a particular course of action. The authors provide numerous examples and case studies to illustrate how simple rules can be applied in different contexts, such as business, sports, and personal life.

Sull and Eisenhardt also discuss the process of creating and refining simple rules. They emphasize the importance of experimentation and learning from experience, as well as the need to regularly review and update rules to ensure their continued relevance and effectiveness. They also address common challenges and pitfalls that can arise when using simple rules, such as the risk of oversimplification or the temptation to rely too heavily on rules without considering the broader context.

In the final chapters of the book, the authors explore the potential benefits of using simple rules in organizations and society as a whole. They argue that simple rules can foster innovation, agility, and collaboration, and can help individuals and organizations thrive in a complex and uncertain world. They also discuss the role of leaders in promoting and implementing simple rules, and provide practical advice for getting started with simple rules.

In conclusion, Simple Rules by Donald Sull and Kathleen M. Eisenhardt offers a comprehensive and practical guide to using simple rules as a tool for decision-making and problem-solving in a complex world. The book provides a clear framework and numerous examples to help readers understand and apply the concept of simple rules in their own lives and organizations.

1. Simple rules are effective in complex environments

In their book, Sull and Eisenhardt argue that simple rules are particularly effective in complex environments. Complex environments are characterized by uncertainty, ambiguity, and rapid change, making it difficult to predict outcomes and make decisions. In such situations, traditional approaches like detailed plans and extensive analysis often fail.

Simple rules, on the other hand, provide a flexible and adaptable framework for decision-making. They are easy to understand, remember, and apply, allowing individuals and organizations to quickly respond to changing circumstances. By focusing on a few key principles, simple rules help to simplify complexity and guide action in a way that is both effective and efficient.

2. Simple rules foster creativity and innovation

Contrary to the belief that rules stifle creativity, Sull and Eisenhardt argue that simple rules can actually foster creativity and innovation. They explain that simple rules provide a clear framework within which individuals can explore and experiment. By setting boundaries and defining constraints, simple rules encourage individuals to think creatively within those limits.

For example, Google's "20% time" rule, which allows employees to spend 20% of their work time on personal projects, has led to the development of innovative products like Gmail and Google Maps. This simple rule provides employees with the freedom to pursue their own ideas and passions, leading to breakthrough innovations that may not have emerged through traditional top-down approaches.

3. Simple rules help prioritize and focus

In a world of information overload and competing demands, simple rules can help individuals and organizations prioritize and focus their efforts. By providing clear guidelines and criteria for decision-making, simple rules help to filter out noise and distractions.

For example, Warren Buffett's simple rule of "invest in what you know" has helped him prioritize investment opportunities and avoid unnecessary risks. This rule allows him to focus on industries and companies that he understands well, increasing the likelihood of successful investments.

4. Simple rules enable rapid decision-making

In fast-paced environments, the ability to make quick decisions is crucial. Simple rules provide a framework for rapid decision-making by reducing the need for extensive analysis and deliberation.

For instance, in the healthcare industry, the "ABCs" rule (Airway, Breathing, Circulation) is a simple rule that guides emergency medical professionals in prioritizing patient care. By quickly assessing and addressing these three critical areas, medical professionals can make rapid decisions that save lives.

5. Simple rules promote collaboration and alignment

Simple rules can also promote collaboration and alignment within teams and organizations. By providing a shared set of guidelines, simple rules help individuals work together towards a common goal.

For example, the simple rule of "everyone should contribute at least one idea in every meeting" can encourage active participation and ensure that diverse perspectives are heard. This rule promotes collaboration and prevents dominant voices from overshadowing others.

6. Simple rules enhance learning and adaptation

Simple rules facilitate learning and adaptation by providing a feedback loop for continuous improvement. By observing the outcomes of their actions and adjusting their rules accordingly, individuals and organizations can learn from their experiences and make better decisions in the future.

For instance, in the world of professional sports, coaches often use simple rules to guide player performance and strategy. By analyzing the outcomes of games and adjusting their rules, coaches can adapt their approach and improve team performance over time.

7. Simple rules can be tailored to individual contexts

One of the key advantages of simple rules is their flexibility and adaptability to different contexts. Simple rules can be tailored to individual preferences, circumstances, and goals.

For example, in the realm of personal finance, the simple rule of "pay yourself first" can be customized to fit different income levels and financial goals. The rule may mean saving a fixed percentage of income for some, while for others it may mean setting aside a specific amount each month.

8. Simple rules require periodic review and refinement

Lastly, Sull and Eisenhardt emphasize the importance of periodically reviewing and refining simple rules. As circumstances change and new information becomes available, simple rules may need to be adjusted to remain effective.

Regular review and refinement of simple rules ensure that they continue to align with goals and objectives, and that they remain relevant in a dynamic environment. By regularly evaluating the outcomes of their actions and updating their rules accordingly, individuals and organizations can stay agile and responsive to changing conditions.