One of the key factors a leader needs to get clear on is their decision-making process. So often, we make decisions based on intuition that isn’t grounded in any data. Now, if you’ve been in a particular industry for many years, often that intuition will be correct. What you’re really dealing with is pattern recognition, and you’re leveraging that internal pattern to make a wise decision (as discussed before, I encourage myself and others to listen to their gut, but within reason.)
However, as Daniel Kahneman explains in Thinking, Fast and Slow, there are two systems of decision-making. System 1 is fast, automatic, and often emotional. It’s great for quick decisions like what to wear or what to have for lunch—decisions that, if you had to consciously think about, would slow you down to the point of paralysis. System 2, on the other hand, is slower, more deliberate, and requires conscious effort.
As a leader, it’s critical to recognize when you’re in an environment of stress or excitement because your instinct might be to default to System 1, which leads to rash or convenient decisions. It’s important to slow down, ensure you’re not making decisions purely based on emotions, and instead engage System 2 thinking. This is where you take the time to study the data, listen to your team, and consider different viewpoints before moving forward.
Intentionality is key. If you find yourself in an emotional state, whether that’s excitement, anger, or frustration, it’s a sign that you need to slow things down. That might mean telling the team, “I need to sleep on this,” or giving yourself time to deliberate. The goal is to avoid decisions made out of convenience or emotion, and instead, to focus on facts, data, thoughtful reflection and a little intuition.
Early in my career, I leaned heavily on System 1 decision-making. I had been selling real estate for years, closing over 100 homes a year, and I got into a mindset where I felt I knew it all. When I stepped into leadership, I was quick to give decisions without slowing down to engage in more thoughtful, deliberate consideration.
One issue that arose was I wasn’t always explaining the reasons behind my decisions to the team. This lack of clarity created a dependency, where team members began to rely on me in an unhealthy way. They weren’t developing their own decision-making skills because I wasn’t taking the time to walk them through my thought process.
An example that stands out is when I was presented with a 100-page legal document and faced pressure to make a fast decision. Relying on my gut and trusting the intentions of the other party, I skimmed through it without a full read. This was a classic System 1 reaction—assuming the document was fine based on familiarity rather than analyzing the details. Unfortunately, this led to negative consequences for both myself and the company.
When we’re under stress, we tend to default to easy decisions. It’s tempting to say, “I trust this person, so this document must be good,” but that’s dangerous thinking. That’s where engaging System 2—slower, more deliberate thinking—is crucial.
In hindsight, I’ve learned that while gut instinct and intuition are important, especially when you have experience in a particular area, for major decisions you need to leverage both intuition and data. This combination ensures you’re not just making decisions based on habit, emotion, or pressure, but with a full understanding of the potential consequences.
Approaching High-Pressure Decisions with Intentionality
When I’m faced with a high-pressure decision, the first thing I remind myself is to pause and breathe. It’s easy to let urgency dictate a fast decision, but in those moments, it’s crucial to engage System 2 thinking and deliberately slow down. I’ve learned over time that when stress or urgency is involved, it’s even more important to take a step back and ensure I’m not just reacting.
One practical step I take is to gather as much data as possible, but not to the point of analysis paralysis. It’s about finding that balance—getting enough information to make an informed decision while not letting the pressure push me into a rash choice. I’ll also engage my team, asking for their input and encouraging them to bring multiple perspectives to the table. This not only helps me make a more balanced decision but also keeps the team involved and ensures we’re all aligned.
Another key is setting aside my initial emotional reactions. If I feel excited or anxious, I know that’s System 1 trying to take over. In those moments, I’ll say to the team, “Let’s take a day to think this through,” or even just give myself an extra hour to cool off and re-evaluate. The aim is to be intentional, even when time is tight, and ensure I’m making the best possible decision for the long-term goals of the business, not just responding to immediate pressure.
This approach ties back to what Kahneman describes as cognitive ease—the brain’s tendency to take the path of least resistance. When we’re under pressure, the easy way out is to make quick decisions based purely on gut feelings or initial impressions. But I’ve found that by consciously engaging in deeper, more thoughtful decision-making, I can ensure that I’m operating with intention and not just reacting to surface-level triggers.
Fostering a Culture of Intentional Decision-Making
Creating a culture where the team makes thoughtful, intentional decisions starts with leading by example. If I’m always rushing through decisions, or making snap judgments, the team will naturally follow that behavior. So I focus on demonstrating what intentional decision-making looks like by pausing, gathering input, and carefully considering options before arriving at a conclusion.
One of the first things I do is encourage the team to slow down and think through their decisions, especially when they feel pressured. I’ll often remind them to consider both the data and the context. For example, when a problem arises, I ask them to bring not just the issue, but also a few potential solutions. That pushes them to think critically and encourages System 2 thinking, where they’re analyzing the problem rather than jumping to quick fixes.
I also work on building a culture of psychological safety where it’s okay to take time to evaluate decisions. When there’s a high-pressure situation, I’ll let the team know it’s fine to take a day or two to think things through, and that it’s better to get the decision right than to get it fast. I stress the importance of asking for help or input if they’re unsure, instead of pushing through with a decision just to move things forward quickly.
We also hold regular “debriefs” after major projects or decisions, where we reflect on the process and outcomes. This helps the team see the value of slowing down to think and evaluate before acting. It’s all about making thoughtful decision-making a part of the fabric of the team’s day-to-day work.
Finally, I emphasize avoiding the halo effect, which Kahneman describes as the bias of letting first impressions cloud judgment. We make sure to gather multiple perspectives and revisit initial conclusions. It’s about slowing down enough to ensure we aren’t making decisions based on the first idea or the loudest voice in the room, but on the best collective thinking.