The DNA of good decision-making

Decision-making precedes every action we take, whether that action is conscious or unconscious. It's said that we make 35,000 decisions every day, albeit that figure isn't backed by much scientific evidence. In any case, we make decisions frequently. Some are simple and low impact, such as deciding to do the washing up right after dinner or before bed, while others are more complex and high-stake, like deciding on whether or not to remortgage the house.

In work, it’s no different: every strategy, policy, investment, and people-related decision ultimately boils down into a series of choices. Often, these choices are made under conditions of constraint, uncertainty, and competing priorities. For leaders in particular, decision-making is both unavoidable and critical. The further one moves into senior roles, the fewer decisions are routine and the more they involve ambiguity, risk, and trade-offs between imperfect or incomplete options. These decisions tie directly into outcomes, which tie directly into organisational performance and success.

This makes decision-making especially important right now. Increased complexity, accelerated change, and persistent uncertainty all demand leaders to decide with incomplete information, often at pace and more often than ever before. At the same time, of course, poorly made decisions chip away at reputation, trust, and confidence.

Leaders and non-leaders who are able to make effective decisions with conviction, and in a timely manner, prove themselves to be invaluable for organisations. Presumably, this is where most of us would like to be. And now, equipped with research and further knowledge around the DNA of decision-making, it's much clearer as to how we get there.

Decision-making strategies

According to Dr Joel Hoomans, author and Professor of Leadership & Management at Robert Wesleyan University, there are several different approaches that can be taken when faced with making a decision.

These include:

• Impulsiveness: Making the decision based on the first option that arises

• Compliance: Opting for the decision which is the most popular amongst those who are impacted

• Delegating: Not making the decision yourself but passing it on to others

• Deflection: Avoiding making the decision

• Balancing: Taking time to understand and weigh up the factors

• Prioritising: Focusing on the decisions which will have the greatest impact

  
  

Each of these styles can be effective in different situations, and their effectiveness is dictated entirely by context. For example, impulsive decisions may be the best option in low-risk and time-critical situations, while balancing is essential when decisions have long-term or ethical consequences.

The real risk lies in over-reliance on habitual strategies. Research on judgement and decision-making shows that people tend to default to familiar approaches even when the environment has changed. Effective decision-makers demonstrate cognitive flexibility: this is the ability to select a strategy that best fits the nature of the decision rather than relying on what decision-making strategy feels most comfortable for you. In sum, the real challenge comes before the decision-making process - it's about identifying which approach is best in that moment.

Risk-taking in uncertainty

It may be slightly disheartening to hear this, but the reality is that the most meaningful and valuable organisational decisions are made under uncertainty. Often, information is incomplete; outcomes are probabilistic at best, and a shot in the dark at worst; and second-order effects are difficult to anticipate.

Despite all that, many of us will prevaricate, actively searching for more information or waiting for it to be delivered to us. But further analysis doesn't always deliver more certainty - sometimes we must make decisions that feel incomplete, embrace the uncertainty, and, ultimately, involve greater risk. The reality is that all decisions will have an endless number of outcomes which are negative or positive, many of which we cannot predict in advance. There will always be risks that we did not perceive or control for, but on the other hand, there are likely to be many positive outcomes which we are not able to predict either!

Some people may be more naturally risk-averse, whilst others feel more comfortable. But sometimes risk can't be eliminated from the decision-making equation. But let's be clear: risk-aversion and risk-embracing can both be problematic, so it’s key to understand your position and when it’s time to flex your approach to risk.

Finding the right speed

It’s no secret that being able to make good decisions quickly can help you to get ahead. A McKinsey survey found that respondents spent 37% of their time making decisions, and that more than half of this time was spent ineffectively. The ability to spend less time making decisions, whilst still making the right choices, will provide you with more time and allow you to make better use of resources.

That said, it's important to recognise that quick decision-making is not the same as impulsive decision making. For many, the ability to make quick decisions is something that is developed over time. As we advance in our careers, our prior experience crystallises into a guidebook we can dip back into, containing more knowledge and understanding of the outcomes of different decisions, allowing us to weigh up options more efficiently.

Some decisions will be easier than others. Simple problems may be solved quickly, regardless of our experience. And while it's not unusual to spend more time on decisions which may have a impact on our own lives or those of others, but the key is thinking back to the McKinsey survey: how can you make sure you don't spend time ineffectively? For one, if you recognise an impasse, circular thinking, or lack of progression, it's time to think about what the best next step should be. It could be reaching out to a colleague for another perspective, or pressing 'go' with the confidence that you have enough (albeit incomplete) information.

The impact of emotion

Decision-making is never purely rational and objective. Emotions play an unavoidable central role in how we interpret and process information. They also influence what priorities or goals we set. In high-intensity situations, emotions such as stress and fear narrow our attention and reduce our cognitive flexibility, increasing the likelihood that we slingshot back to our habitual decision-making patterns - whether they're appropriate for the situation or not. Sometimes, it feels as though our emotions are stifling and warping sound judgement.

But emotions are not merely a source of distortion or interference. Research from the 1990s in affective neuroscience and psychology (which is still relevant today) demonstrates that emotional signals are, in fact, essential for effective decision-making, particularly when weighing value, risk, and long-term consequences. It's been shown too that decisions that are emotionally salient often generate greater commitment and follow-through, as individuals feel personally invested in the outcome rather than merely compliant with it.

The challenge, therefore, is not to remove emotion from decision-making, but to regulate its influence. Good decision-makers are able to recognise when emotional responses are driving urgency or avoidance, and introduce logic where decisions are complex. Being aware of this dynamic, and achieving a sense of balance, means that emotion adds to our logical judgement by deepening meaning, value, and commitment.

Decisions, decisions...

So, decision-making is something we all have to engage in, regardless of seniority or role in work. To make better decisions, understanding the different decision making strategies - and when to use them - is a good start. The ability to take calculated risks and prioritise decisions can also contribute to better decision-making. Take a balanced approach, embrace emotion and logic in moderate quantities to illuminate the best path ahead.

One thing's for sure: good decision-makers are highly sought-after. So, what's your next step to make better decisions?