Don’t Be Afraid to Make a Decision

I’ve witnessed some leaders, young and old, new and experienced, struggle with making critical decisions. They tend to get bogged down with data and fear. I believe fear contributes to a leader’s inability to reach their potential as an effective decision-maker. Fear is normal when we lead and make decisions. If you have difficulty making decisions, here are some tips to help you make decisions and overcome any fear.

1. Ask “Am I comparing the right things? Opportunity costs are everywhere as we make decisions. When we say “yes” to something, we are saying “no” to other options. However, when we are comparing our opportunity costs, make sure you are comparing the right things. The other day I was discussing with a friend a decision he was facing. He was faced with three different options he could choose from in dealing with his issue. As we began to examine the opportunity, I asked, “Are these all three of these opportunities equivalent?” As he began to discuss the opportunities in greater detail, it began apparent that one was quite simply not equivalent to the other two. After eliminating that option, it became easier for him to decide between the remaining two options.
2. Know your sunk costs Sunk costs get more people stuck in their decision making than almost any other consideration. Sunk costs are those costs that will never be recovered no matter what decision is made. It’s money that gone, and you cannot get it back. I frequently see clients focus on the cash that has been lost. When my brother and I invested in residential real estate, we saw investors get stuck in a bad property, a bad decision, because they were considering their sunk costs. It became a focus of theirs, and they seemed determined to recover it even when it is lost forever. These costs become those anchors that keep you stuck in your situation. It’s important to realize that sunk costs are not only financial in nature, but they can also be emotional and personal. We all know that friend who is still pining for their old boyfriend/girlfriend even though the other person has moved on. They are hanging onto the sunk costs of that relationship and keeping themselves from enjoying life and seeing other opportunities around them.
3. Recognize you can almost always make a second choice Most of the time our decisions are not final. We can make a second decision to adjust our course. Sometimes things don’t go as we had planned or hoped. It’s stubbornness and pride that keeps us from recognizing we need to change course. One tool to help you in your decision-making process is what I use when I plan a flight. I always pick a backup or alternate airport to land at if the weather prevents me from reaching my destination. Whenever I am making a decision, I identify a Plan B should Plan A not work out quite right. When you are evaluating options, take some time to formulate an alternative decision should your initial choice not work out. Don’t be afraid to make a decision that improves your initial decision.
4. You will never have perfect information Certain personality types love data. In fact, that is all that matters to them. Leaders, regardless of their personality style, want data too. In your quest for data, avoid the trap of being stuck in the paralysis of analysis. The perfect decision does not exist in the present, only in the future after you examine the past. Gather as much data as you can within a reasonable amount of time. Set your tolerances for incomplete data and once you reach that mark, make your decision.
5. Use a checklist to aid your decision making. If you’ve followed my articles for a while, you probably noticed I like checklists. In my career and hobbies, I use them a lot of the time. Because of that, I have adapted this checklist approach to many things in leadership. I use a checklist when I am faced with a decision. The list contains a series of questions that help me stay focused and make sure I’m seeing the issues from every angle possible. It helps ensure that I’m not missing anything in my decision-making process.