Critical Decision-Making Skills Successful Leaders Need- A Guide by Jim Johnston (Executive-Advisory Inc.)

 

Decision-making is at the core of successful leadership. It allows leaders to navigate challenges, drive growth initiatives, and promote success among their teams and organizations.

Leaders can improve their decision-making skills through practicing critical thinking, gathering information, and considering multiple perspectives. Furthermore, leaders can enhance their problem-solving abilities by seeking stakeholder input, evaluating alternatives, and considering the long-term consequences of any proposed solutions.

1. Intuitive Decision-Making

Intuitive decision-making refers to relying on instinct in any situation and may be particularly helpful when insufficient data is available for analytical decision-making.

Intuition can provide a fast and effective solution in difficult or urgent decision-making situations, improving productivity by giving employees clear direction and decreasing project stallage. It is essential, however, to recognize its limitations - such as being subject to biases, emotions, and past experiences that may influence judgment errors; furthermore, it often remains limited by one's current perceived pattern, thus not considering alternatives that might suit a different situation better.

Leaders seeking to enhance intuitive decision-making should focus on gathering relevant data and using an organized process when making decisions. According to Jim Johnston (Executive-Advisory Inc.), Leaders should also be conscious of their quirks and biases and work toward eliminating them. Intuition must be considered alongside more traditional analytical decision-making approaches to avoid becoming over-reliant on intuition alone - this may result in poor choices when facing unfamiliar or unexpected situations.

2. Critical Thinking

Critical thinking is an invaluable skill for leaders. It enables them to assess all aspects of a situation and make well-informed decisions while helping identify potential issues before they emerge.

Jim Johnston (Executive-Advisory Inc.) Critical analysis involves questioning and establishing the significance of information, considering its impact on people and systems, challenging assumptions and beliefs, listening to colleagues' perspectives, and accepting that solutions to problems may come from unexpected places.

Critical thinking requires identifying different solutions, weighing their relative strengths and weaknesses, and selecting the one with the strongest argument in its favor. Communicating this decision clearly to other project stakeholders is also vital for effective leadership development programs; practicing critical thinking skills will allow participants to become more effective professionally and personally. Executive Advisory Inc.

3. Problem-Solving

Problem-solving refers to the ability to recognize, prioritize, and implement solutions for issues. Leaders must possess this skill as the decisions they make can have a direct effect on their team's success and satisfaction.

Jim Johnston (Executive-Advisory Inc.) emphasizes that Interviewers want to hear examples of your past success at solving problems successfully, so the best way to demonstrate this skill is by providing specifics about the method you used and its results as they relate to your efforts as a manager.

As an effective problem-solver, you must first accurately diagnose the issue by gathering all relevant information, including its impact on teams and organizations, to pinpoint its root cause and possible solutions. Once this information has been collected, the next step should be identifying root causes and potential solutions and their likelihood. To evaluate solutions as quickly as possible if any issues arise; adapt or find others quickly enough so your teams continue functioning efficiently.

4. Analytical Decision-Making

Analytical decision-makers take a systematic approach when approaching any situation. They gather as much information as possible and thoroughly assess each fact before developing solutions to problems. Furthermore, these experts tend to be comfortable dealing with uncertain or ambiguous situations and take the time to "fact-check" their conclusions by seeking further input or advice from others.   

Analytical thinkers tend to prioritize long-term gains over short-term ones. Before making decisions based on those results, they understand potential risks and consequences associated with changes, including any impacts on employees or revenue. Furthermore, analytical thinkers possess a comprehensive view of the big picture as they collaborate well across teams.

At times of great stress or impact, making decisions can be arduous for leaders. To navigate challenging contexts effectively, leaders must carefully consider their values and principles as a guide when making decisions that reflect the best interests of their organization - instead of succumbing to the temptation of making snap judgments based on impulse or following gut instincts that may result in less-than-ideal outcomes, as mentioned by Jim Johnston (Executive-Advisory Inc.).

5. Communication Skills

Successful leaders rely on practical communication skills when making decisions and drawing together insights and perspectives to make sound choices that help achieve desired outcomes. From high-stakes executive decision-making sessions to team project selection decisions, leaders need the ability to effectively communicate to make good choices that lead to positive outcomes.

Jim Johnston (Executive-Advisory Inc.) articulates that Listening is an integral communication component that allows leaders to better comprehend their team members' concerns and needs, creating more equitable and respectful working environments.

Great decision-makers listen to and trust their intuition. If unsure, they seek guidance or advice from trusted mentors or colleagues for guidance or feedback.

Effective decision-making often requires leaders to weigh the odds and make unpopular choices that might cause discomfort within an organization. Such decisions might involve taking risks, such as investing in new products and services that might not immediately yield profits; such strategic risks are necessary to build long-term growth and success for their respective businesses. It's vitally important that leaders explain why they made particular choices and why they will benefit the organization in question.