Top 5 Decision-Making Skills of A Great Leader

Every day we are faced with decisions, big and small. Business leaders know this all too well, as the big ones generally fall on them. From deciding whether to pursue a new business venture or adding/laying off a personnel to any other choices that can make or break the success of an organization. Good decision-making skills are a must. But what exactly are good decision-making skills? And how do you know you’ve made a “good” decision?

The Makeup of a Good Decision-Maker

Simply put, a good decision-maker has the consistent ability to choose an option from many that ultimately addresses a problem or issue effectively. Or, they see beyond where there is only one apparent possibility. They make timely decisions and create positive outcomes. But why do some people seem to do this almost instinctively while others need to work at it? What qualities do good decision-makers have in common?

It’s probably no surprise that many of the qualities that make a great leader also lend themselves to good decision-making. But good decision-makers develop those qualities (in parentheses) into a specific skill set that gives them the ability to consistently choose wisely. These include:

• The ability to define a problem and the logical steps needed to solve it (Problem-solving)
• The ability to think outside the box to develop possible solutions (Creativity)
• The ability to reason well and weigh options accurately (Logical Reasoning)
• The ability to recognize and mitigate where bias or emotions are affecting decision-making (Emotional Intelligence)
• The ability to move forward in the face of uncertainty or unpopular choices (Courage)

Let’s look at each in a little more detail.

1. Problem-Solving: The Ability to Define a Problem and the Logical Steps Needed to Solve It

To solve a problem, it is absolutely critical to understand clearly what needs to be resolved. It is also important to understand the factors or resources available that will affect the resolution and path forward. Good decision-makers are good problem-solvers. They take time with this step to fully frame the problem and all incremental milestones that lead to a solution. This includes understanding any obstacles or constraints (such as financial resources or stakeholder opinions) that affect possible outcomes.

2. Creativity: The Ability to Think Outside the Box to Develop Possible Solutions

Once a clear picture of the problem is in view, good decision-makers brainstorm a list of options and possibilities without judgment or prejudice. They know how to form the right team to help with this process and tap into their own ability to influence to get the team’s full commitment. That is, they tap into their creativity.

In this Harvard Business Review article, the authors suggest framing the question of possible solutions with “what could I do?” rather than “what should I do?” This encourages thinking beyond obvious or given options and fosters more insight and creative thinking. Good decision-makers naturally do this — they look at solutions in terms of what is possible.

To read more, check out the original article published on Strategy People Culture.