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Imagine being a CEO faced with a high-stakes decision under intense time pressure, knowing that a mistake could have detrimental consequences. How should such decisions be approached? Should you trust your gut, rely on data, or both? Who should be involved in the decision-making process, and how can clarity be gained before it’s too late?
INSEAD Knowledge recently reported [CLICK HERE TO READ] a recent study involving 111 CEOs that highlights the personal and organizational challenges leaders face in high-stakes decision-making. These CEOs, from diverse professional backgrounds and global locations, emphasized the balance between intuitive judgment and analytical thinking. Common issues included psychological pressure, personal biases, and the need to balance competing stakeholder interests. Unpredictable market conditions and a lack of reliable data further complicated decision-making.
The study revealed that more experienced CEOs employed effective coping strategies, such as maintaining work-life balance through regular exercise and downtime, and consulting a network of trusted advisors. They fostered teams with diverse perspectives and promoted a culture of open feedback and transparent communication. Unlike their less experienced counterparts, they accepted stress as part of the role and did not rush important decisions.
Key insights included the importance of a growth mindset, self-awareness, and emotional intelligence. Effective leaders recognized their blind spots and continuously worked on personal and team growth. They balanced intuition with data and sought advice from trusted sources.
To enhance decision-making skills, leaders should:
1. Learn decision-making frameworks and risk assessment strategies.
2. Develop coping strategies for stress and isolation.
3. Build a network of trusted advisors.
4. Enhance self-awareness and emotional intelligence.
5. Promote an inclusive culture for diverse perspectives.
6. Integrate intuition wisely into decision-making.
Mastering high-stakes decision-making involves preparing both oneself and the team for critical thinking and process attention, ensuring sound decisions under pressure.
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