Five Traits of Leaders Who Excel at Decision-Making

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Illustration Credit:    Carolyn Geason-Beissel/MIT SMR | Getty Images

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Leaders who understand how to manage the emotional discomfort of uncertainty are better equipped to make level-headed decisions. Concentrate on five specific areas to improve your ability to be decisive.

You may feel that this is a time of radical uncertainty, when past patterns no longer reliably predict the future. Uncertainty inherently leads us to a place of emotional discomfort because it signals both potential opportunity and adversity. Neuroscience shows that powerful and automatic brain responses are simultaneously triggered in the form of approach emotions (excitement) and avoidance emotions (doubt and anxiety). Because the resulting state of ambivalence is tense and painful, there is a potential rush to ill-considered action, whether it be to grasp opportunity or forgo it as quickly as possible.

I recently collaborated with HSBC to study the question of how we can empower more people with effective decision-making skills in a world of complexity and disruption. We sought to identify global trends in emotional responses to uncertainty, as well as the tendencies that predict strong decision-making abilities within this context. The study involved 17,555 individuals across 12 markets, including more than 3,000 business participants ranging from leaders of small and medium enterprises to executives of multinationals. Respondents shared details on how they made, are making, or plan to make decisions at some of their biggest personal and professional moments.

Our research report, “Seizing Uncertainty,” reveals that effective decision makers share five key attributes that emotionally equip them to overcome the decision paralysis caused by doubt and anxiety — and enable them to undertake effective action when faced with uncertainty. It’s a vital skill: Nearly half of respondents reported that they often feel regret “at not taking opportunities when they have passed me by.” This means that unless leaders learn to manage the emotions involved in decision-making, they could suffer, as may their organizations.

What is it about the leaders who can deal with uncertainty well compared with their peers? Here is what we learned. Collectively, these are the skills leaders and organizations can prioritize strengthening.

[Here’s the first.]

1. They view change positively.

One key attribute linked to effective decision-making under uncertainty is that these leaders feel equipped to deal with change. This is something that’s easier said than done: In my research with HSBC, although 70% of business leaders claimed to generally view change positively, upon further probing, 47% admitted that they see unexpected changes purely as something to be managed or coped with, and a further 13% said that they prefer to avoid them altogether. This underscores the fact that while many people may claim to embrace uncertainty, many struggle to do so in practice.

While many people may claim to embrace uncertainty, many struggle to do so in practice.

Employing the power of imagination can be a key to alleviating this burden. One survey respondent, a manager at a restaurant chain in Hong Kong, told a story that was indicative of what we heard from others who were able to frame the value of change. He told us that he sensed that his business was stagnating and that a new bakery franchise would be beneficial. He was apprehensive, though, about approaching management with his idea for a change in direction. “I agonized for ages, having mapped out the entire plan in my head,” he said.

He now recalls how simple the solution was. He took his manager to another local bakery and talked through his idea, focusing on both the numbers and the palpable feel of the venue. He helped management to envision what he could see. It worked: He got permission to try out one bakery, and the chain went on to expand successfully. “Removing the stigma of change was all about appealing to the imagination, starting with a small, tangible step,” he said.

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