Equipping Leaders with Critical Decision-Making Skills

The critical factor of any decision made is not only a question of ‘when’ to make a decision, but more importantly, ‘what’ decision to make. According to a global survey by McKinsey, 68% of managers at the mid-level, believe that most of their time spent in decision making is inefficient. And 57% of C-level executives too feel the same.

Despite all the ambiguity and the building pressure, a leader must stay put and help his/her team deliver at every step. Analysing every risk as well as the possibility, a leader’s decision must be fair, reasonable, and aligned with the company’s culture.

To stay on track, leaders must consistently re-evaluate their decision-making abilities.

There are four prominent decision-making styles:
· Directive: Past experiences that drive actions.
· Conceptual: Providing autonomy to facilitate collective team engagement.
· Analytical: Relying on data, facts, and observations.
· Behavioural: Driven by collaboration and empathy.

Autonomy with the ‘People-First’ Approach

Leaders cannot afford to make decisions on impulse. The biggest challenge that a leader must overcome is to ‘respond’, instead of ‘reacting’. Outlining the scope of work and chalking out a detailed path for the team to walk on are the foundations of every leader’s decision. But if the decision made allows only the business to grow, without taking the people along; the scales will always remain unbalanced.

There is a reason that you are in a decision-making position. It is your role to look for solutions where others cannot. Sometimes, time gets sucked away in managing operations, meetings, emails, or in making operational or tactical decisions; and we end up making quick decisions. However, some of the best solutions are arrived at when the mind is rested.

Gauging the Impact of a Poorly Made Decision

A team can only succeed when every individual in the team is self-sufficient in every aspect of his/her job – Be it problem-solving, communication, planning, or time management. Thus, it becomes extremely crucial, for not just the team members, but also the leader, to connect with the end goal on an everyday basis. Rather than penalising teammates for making a decision that didn’t live up to expectations, leaders must be equipped to design interventions as well as learning opportunities, that empower the team to overcome unforeseen hurdles. This is only possible when the ultimate goal is in sight.

In these times it is tempting to make short-term decisions, like lay-offs, reducing service levels to customers to cut costs, or holding off payments to suppliers. But what a leader should always remember is that employees, suppliers, and customers need you more than ever. If you stand by them now, they will pay you back with loyalty in the long run.

Overcoming Subconscious Biases with a Futuristic Vision

Instead of pinning after ‘fast’ decisions, emphasize on making the ‘right’ decisions. Business decisions are driven by data and hard facts. But what about decisions that involve people? Today, organizations are investing in technologies that support Machine Learning and Data Analytics to further help empower their leaders in nurturing a solution-oriented mindset. Decision-makers, therefore, need access to information from cross-functional verticals. Allow exposure to multiple avenues in business such as finance, admin, legal, etc. Being exposed to different functions will help create a sense of awareness and will lead to a 360-decision-making process.

Humans generally tend to weigh the odds in terms of quantity. Great leaders need to look at the nature of all the pros and cons. Because when decisions are evaluated from a filter of ‘Is this the right thing to do?’, a lot of clarity emerges. Therefore, focus on the leadership legacy that you wish to leave behind.

An All-Round Development

One of the biggest aspects of equipping leaders with critical decision-making skills is to provide them with challenges to develop their Emotional Quotient at regular intervals. Because only when a leader is self-aware, as well as aware of the surroundings, can he/she bring about a positive change that creates a high impact.

Ideal leaders understand the importance of balancing emotion and reason and can process information with speed while ensuring that the outcome does not lead to any compromise on the people front. They are capable of navigating grave risk while evaluating options and ultimately can manoeuvre the situation with decisions that deliver a favourable outcome.

This article first appeared on ET HR World.