Decision-Making Basics

Two fundamental forces determine our prosperity: decision quality and luck, asserts World Series of Poker champion Annie Duke in Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts (Penguin, 2018). Leaders instinctively (and rightly) dislike depending on luck and want their decisions to shape the future.

In our fast-paced world, important issues never become simpler, only more complex. You have less time to take each course of action and make each choice, with an ever-increasing impact on outcomes. Decisions that don't go well are critiqued and analyzed. The need to make good decisions has never been more paramount-not just for leaders' well-being, but for everyone under their authority.

People have two different modes of thought when a decision is required, and each has its place:

1. The automatic, or "flash," mode is more reactive than responsive. It's based on instinct and feelings when emergency situations can't wait for much analysis. Leaders must react immediately or fail.
2. The analytical mode calls for deliberation and analysis. This is, of course, a slower and more methodical decision process, where time allows for (and requires) thorough evaluation of all options and outcomes. Long-term planning calls for the analytical decision mode, where a leader must respond wisely or fail.

A leader's decision-making success hinges on resolving the balance between these two modes, Duke maintains. React when necessary, but learn to shape your reactive thinking with as much analysis as possible. Great leaders also learn to prioritize choices that benefit everyone over those that advance their personal agendas.

Decision-making burdens many leaders because each choice rules out an alternative. Other courses of action must be abandoned, and their potential outcomes never come to fruition. This can cause hesitation or paralysis. Leaders are misled into thinking they can hold off making decisions without consequence. But making no decision is in itself a decision, with a separate set of consequences. There's no escaping it: You always make a decision at every crossroad.

Uncertainty is another challenge for decision-makers. Conditions are constantly changing, and information may be incomplete. Some data are misinterpreted or misunderstood. Some situations are subject to chance, and unknowns may not be recognized until after a decision is reached. Experienced leaders know that even a wisely crafted decision, one made with full analysis and care, can go south. There are no guarantees. Yet, decisions must still be made, and leaders must be held accountable. It comes with the territory.

Dr. Maynard Brusman

Consulting Psychologist amp; Executive Coach
Trusted Leadership Advisor

Professional Certified Coach (PCC), International Coach Federation

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