Decision Speed
/How often are you making decisions under pressure?
If you are a leader in the current epoch, decisions under pressure go with the territory. Pressure is applied by many means:
Time = pressure
Consequence = pressure
Uncertainty = pressure
Size = pressure
And I reckon there are some variables I’ve missed or might be unique to you or your sector.
I was recently talking to a CEO who has a massive decision to make. It involves a significant partnership opportunity with another organisation. The owner of the other organisation makes large, high-consequence decisions very quickly and sorts the details later. Our CEO leads an organisation that’s much more risk-averse and has more stringent financial governance requirements. Decisions involving the amounts of money being discussed would normally be slow and laborious.
The decision is pressured by size, time, and consequence. If they don’t find a way to take the opportunity, it will be lost and unlikely to arise again. She’s rightly driving for a faster-than-normal decision process.
Some considerations that she is using, and which are broadly helpful in similar pressured situations:
How reversible is this decision? If we get it wrong, can we change it, or are we locked in?
Does inaction or action effectively decide for us? If so, be proactive.
Is the decision aligned with our fundamental direction and strategy? If yes — simple decision. If not, also simple.
What are the minimum GO/NO GO criteria for this? Are there any likely or high-consequence risks that could make this end badly? If no — simple. If yes, how do we mitigate sufficiently to still proceed, and/or what is the point at which the risk is too great for our appetite?
What’s at risk if we don’t take this up? Is that risk worth it? Often, we only consider the risk of action and forget to factor in the risk of inaction. Don’t be caught on the sideline for something that could be amazing.
Let me know about some of the big decisions you have made or are making.
Next week, we’ll unpack some survival psychology aspects of deciding under pressure.
