Leaders have to make many choices every day, often with limited information. How can you be confident when things are not clear? The key is to learn how to make decisions well.
The Decision-Making Challenge for Leaders
- Too Much Information, Not Enough Clarity: Leaders now have access to a lot of info, but it can confuse more than help.
- Fear of Making Mistakes: Many leaders put off decisions because they are scared, but not deciding can be the worst option.
- Three Tips for Making Better Choices
Use the “80% Rule:”
- If you wait for all the details to be perfect, you will lose time. If you have most of the info, go ahead and adjust as things go.
- Example: How this idea aided a client in making a key policy change even with uncertainty.
Use Ideas from Different Fields:
- Mix ideas from various areas. For instance, engineers think about systems, while lawyers focus on risks. Using both can improve the decision-making process.
Establish a Feedback System:
- Ask for opinions from your team and outside experts. Different views can help you notice blind spots.
- Use feedback to improve decisions as you go.
A Case Example: Making Choices Under Stress
In recent years, the most stressful situation I can recall is when Covid was shutting down businesses. People were in panic mode. Nobody really knew what to do because they had never faced such a crisis. We did not have the time nor the information to be 100% sure of anything. It was a difficult time for all leaders. We were able to make some very difficult decisions to keep the businesses alive without risking the safety and health of the employees. None of this would’ve been possible if we had stayed in the Company lane. But we did not. We reached out into other silos and other businesses to create a full-fledged generalist approach to dealing with the crisis.
Uncertainty is part of life, but not deciding is not an option. By taking smart risks, getting different views, and taking action, you can lead with clarity and confidence.
How do you manage decisions when under pressure? Share your methods in the comments, and create ways to lead during uncertain times.