Decision making: the complete guide
Decision making is the cognitive process of selecting a course of action from multiple alternatives. Great leaders make decisions quickly, confidently, and consistently—even with incomplete information.
⚡ Quick answer
What is good decision making? It's the ability to analyze situations, consider alternatives, and commit to a choice with appropriate speed and confidence. Good decisions aren't always right—they're well-reasoned, timely, and made with accountability for outcomes.
What is decision making?
Decision making is the mental process of choosing between options. It involves gathering information, weighing alternatives, predicting consequences, and committing to action. For leaders, decision making is often under time pressure, with incomplete data, and in front of people who will be affected by the outcome.
Jeff Bezos famously distinguishes between "one-way door" decisions (irreversible, requiring careful analysis) and "two-way door" decisions (reversible, favoring speed). Most decisions, he argues, are two-way doors—yet people treat them all like one-way doors.
The goal isn't perfect decisions. It's making good enough decisions quickly enough, and having the systems to course-correct when you're wrong.
Why it matters for leaders
Leaders are defined by their decisions. A study by McKinsey found that executives who make decisions quickly and well are 6x more likely to be in the top quartile of business performance.
- →Speed compounds. Fast decisions let you iterate. Slow decisions freeze organizations.
- →Clarity builds trust. Teams respect decisive leaders, even when they disagree with the call.
- →Indecision is a decision. Choosing not to decide is choosing the status quo—often the worst option.
- →Good judgment can be learned. Decision making improves with reflection and structured practice.
Signs you struggle with decisions
🚨 You request "more data" even when you have enough to act
🚨 Decisions get revisited repeatedly without new information
🚨 Your team is paralyzed waiting for your green light
🚨 You feel exhausted by small choices throughout the day
🚨 You avoid making commitments until forced
Decision-making frameworks
1. The 10/10/10 rule
Ask: How will I feel about this decision 10 minutes from now? 10 months? 10 years? This removes emotional short-termism and surfaces what actually matters.
2. Reversibility test
Can this decision be undone? If yes, decide fast and iterate. If no, take your time. Most decisions are more reversible than they feel.
3. Pre-mortem analysis
Imagine the decision failed. What went wrong? Work backwards to identify risks and blind spots before committing.
4. The RAPID framework
Clarify who Recommends, who provides Agreement, who Performs, who provides Input, and who Decides. Most slow decisions lack clear ownership.
5. The 70% rule
Once you have 70% of the information you wish you had, decide. Waiting for 90% certainty usually means you waited too long.
Common mistakes to avoid
Analysis paralysis
More data rarely changes the decision—it just delays it. Know when enough is enough.
Sunk cost fallacy
Past investments shouldn't anchor future decisions. Focus on what's true going forward.
Consensus-seeking
Getting everyone to agree often produces mediocre compromise. Seek input, then decide.
Outcome bias
Judging decisions only by results ignores that good process can still lead to bad outcomes (and vice versa).
How to decide faster and better
- 1Set a deadline. Parkinson's Law applies: decisions expand to fill the time available. Give yourself a deadline.
- 2Write down your reasoning. This forces clarity and creates a record to learn from.
- 3Consult, then isolate. Get input from others, then make the final call alone to avoid groupthink.
- 4Review past decisions. Monthly, look at decisions you made: what did you learn? What would you do differently?
Practice high-stakes decisions safely. Skillbase includes scenarios where you face tough leadership decisions—layoffs, budget cuts, competing priorities—and get feedback on your approach.
Try decision-making scenariosFrequently asked questions
How do I make decisions with incomplete information?▼
What if my team disagrees with my decision?▼
How do I avoid decision fatigue?▼
When should I reverse a decision?▼
Key takeaways
- ✓Good decisions are timely decisions—perfection isn't the goal
- ✓Most decisions are reversible—treat them accordingly
- ✓Use frameworks to structure thinking, not replace it
- ✓Seek input but decide alone to avoid groupthink
- ✓Review past decisions to improve future judgment
Practice making tough calls
Decision-making improves with practice. Skillbase gives you realistic scenarios where you face high-stakes choices and get feedback on your reasoning.
Try Skillbase free