A decision is a sequence of steps involving the collection, analysis, organization, and comparison of data and probabilities to arrive at what a person believes is the most logical outcome.
We often talk about the human brain, which is naturally influenced by past experiences, emotional factors, people in the surrounding environment, time, and current events. As a result, many external elements can sway our decisions toward certain biases, affecting their objectivity.
In 1979, researcher Daniel Kahneman introduced the Prospect Theory, suggesting that decision-making in the human brain passes through two main stages:
Within these two stages, decision-makers go through seven steps to reach the appropriate decision.
Even though Kahneman's framework is clear, the surrounding circumstances at the time of decision-making—especially for leaders—remain critical. Making a decision in times of ease is very different from making one during crises, where time is limited, and information may be incomplete, inaccurate, or improperly analyzed against future probabilities.
Thus, having experienced advisors across different specialties is essential to reaching a logical consensus and making sound decisions.
Some may feel that decisions are made "instantly" and intuitively—but wait!
Even seemingly straightforward decisions bypass several steps because the mind compares the current situation with past experiences.
In reality, even simple decisions typically involve:
To enhance workflow and decision-making, a structured framework was developed called S3, which stands for:
This three-dimensional framework, shaped like a cube, helps leaders assess the impact of rapid changes in operations on their scope and importance.
While discussing decision-making frameworks, many leaders stress the importance of delegation to free themselves for high-priority issues.
But the real question remains:
When leaders stay bogged down in operational decisions without adapting to rapid changes, they risk falling into one of the classic management traps: micromanagement.
Another model was developed to analyze decision-making under four dimensions:
When a leader is caught between lack of knowledge and stress, decision paralysis can occur. This highlights the strength of a leader who continuously learns, stays informed about developments, and maintains open communication with partners across the organization.
However, even if a leader possesses knowledge, the presence of stress can still complicate decision-making. As the saying goes, "The more knowledge one gains, the more one realizes how much they do not know."
Thus, leaders surrounded by skilled advisors often navigate these challenges successfully and arrive at the right decisions.
Conclusion
The human mind is naturally influenced by events, emotions, time pressures, people, and the surrounding environment. While these factors are inevitable, they can sometimes divert decisions away from their optimal course.
A leader who pursues continuous learning, gains insights from various management disciplines, and surrounds themselves with highly competent and complementary advisors can make fair and rational decisions. This combination ensures better control over complex situations and paves the way for organizations to navigate safely toward the future.
