Assess Complexity Using External Signals, Not Feelings

Your default will distort complexity assessment. Over-budgeters see complexity everywhere. Under-budgeters see simplicity everywhere. Use external signals that exist independent of your perception.


The Complexity Scorecard

SignalLow Complexity (0 pts)High Complexity (1 pt)
PrecedentDone this exact type beforeNovel territory
Option clarity2-3 obvious choicesMany options, unclear boundaries
Variable familiarityUnderstand how these interactCan’t model interdependencies
Expert consensusExperts agree on approachExperts disagree or “it depends”
ReversibilityEasy to undo/adjustLocks in downstream choices
Stakeholder alignmentJust me, or aligned interestsMultiple parties, conflicting interests

Scoring:

  • 0-2 points = Low complexity budget
  • 3+ points = High complexity budget

How to Use Each Signal

Precedent

“Have I made this exact type of decision before?”

AnswerComplexity
”Yes, several times”Low — you know the variables
”Similar, but different context”Medium — partial transfer
”Never faced this before”High — unknown unknowns likely

Option Clarity

“How many genuine options exist, and are their boundaries clear?”

AnswerComplexity
”2-3 clear options”Low — comparison is tractable
”4-6 options with some overlap”Medium
”Many options, hard to even enumerate”High — option space itself needs work

Variable Familiarity

“Do I understand how the key variables interact?”

AnswerComplexity
”Yes, I can predict outcomes”Low
”Mostly, with some unknowns”Medium
”I can’t model what affects what”High — system is opaque

Expert Consensus

“If I asked 3 experts, would they agree on approach?”

AnswerComplexity
”They’d all say roughly the same thing”Low — domain has established best practices
”They’d agree on framework, differ on details”Medium
”They’d disagree fundamentally or say ‘it depends‘“High — no established right answer

Reversibility

“If I choose wrong, how hard is it to undo?”

AnswerComplexity
”Easy to reverse, low switching cost”Low — can course-correct
”Moderate effort to reverse”Medium
”Locks in downstream choices, high switching cost”High — must get it right-ish

Stakeholder Alignment

“Who’s affected, and do their interests align?”

AnswerComplexity
”Just me” or “All aligned”Low — no conflict to navigate
”Multiple parties, mostly aligned”Medium
”Conflicting interests, political dimensions”High — decision is also negotiation

Example: GIC Calculator Decision

SignalAssessmentPoints
PrecedentHave done similar builds, but not finance domain0.5 → round to 1
Option clarityClear: build vs. buy vs. hire vs. wait0
Variable familiarityUnderstand some (coding), not all (tax implications)1
Expert consensusExperts would mostly agree: “just use HISA if unsure”0
ReversibilityHigh — can stop building anytime0
StakeholdersJust me0

Score: 2 points → Low complexity budget

But the default said: “This is complex, need to research everything.”

The scorecard overrides the default.


Why External Signals Matter

Internal AssessmentProblem
”This feels complex”Anxiety makes everything feel complex
”This feels simple”Confidence makes everything feel simple
”I need more time”Over-budgeters always feel this
”I know enough”Under-budgeters always feel this

External signals are facts. Either you’ve done this type before or you haven’t. Either experts agree or they don’t. Your feelings don’t change the signals.


Common Trap

Gaming the scorecard. “Well, it’s KIND OF novel territory…” If you find yourself stretching definitions to increase the score, that’s your over-budgeter default trying to override. Be honest: have you done this type before, yes or no?


North: Where this comes from

East: What opposes this?

South: Where this leads

West: What’s similar?