Five Traits of Leaders Who Excel at Decision-Making

You may feel that this is a time of radical uncertainty, when past patterns no longer reliably predict the future. Uncertainty inherently leads us to a place of emotional discomfort because it signals both potential opportunity and adversity. Neuroscience shows that powerful and automatic brain responses are simultaneously triggered in the form of approach emotions (excitement) and avoidance emotions (doubt and anxiety). Because the resulting state of ambivalence is tense and painful, there is a potential rush to ill-considered action, whether it be to grasp opportunity or forgo it as quickly as possible.

The author recently collaborated with HSBC to study the question of how we can empower more people with effective decision-making skills in a world of complexity and disruption.  The research report, “Seizing Uncertainty,” reveals that effective decision makers share five key attributes that emotionally equip them to overcome the decision paralysis caused by doubt and anxiety — and enable them to undertake effective action when faced with uncertainty. It’s a vital skill.  Five Traits of Leaders Who Handle Uncertainty Well.

1. They view change positively.  One key attribute linked to effective decision-making under uncertainty is that these leaders feel equipped to deal with change.  Employing the power of imagination can be a key to alleviating this burden.  Removing the stigma of change is all about appealing to the imagination, starting with a small, tangible step.
2. They frame unexpected challenges as opportunities instead of problems.  Another shared trait of confident decision makers is the habit of reframing unexpected changes as opportunities to be exploited or explored rather than problems to be fixed. These leaders found enjoyment in stepping out of their comfort zone.  Like each of the other traits identified, this is a skill that can be nurtured by personal decisions.
3. They train themselves to be tolerant of uncertainty.  One common emotional response to uncertainty is freezing. Of the business leaders who participated in the research, 32% said they have felt paralyzed by uncertainty when it was time to act. Even more, 42%, said they have put off thinking about decisions because it is uncomfortable.  Treating decisions as experiments can make a difference. Experiments can be monitored, through predefined indicators, to assess whether an approach is working or needs to be modified. This can help leaders overcome the initial paralysis that hinders action.
4. They’re fluent in failure (and they don’t fear it).  Participants in the study who were able to confidently move through the discomfort of uncertain variables had a sunny view of failure. As noted earlier, they saw value in taking risks, even ones that didn’t pay off, viewing challenges and setbacks as a chance for self-improvement. Eighty-three percent said they agree that the fact that they’ve made mistakes in the past has made them better decision makers.  It follows that in times of uncertainty, it’s important to create space for failure and make it a platform for learning.  Creating a culture where failure is destigmatized and teams feel comfortable expressing regret is also crucial when navigating change and embracing the potential for tripping up along the way.
5. They’re grounded in optimism.  Effective decision makers possess a genuine belief that even if things don’t go as planned, the eventual outcome will be positive. Discouraging this mindset can be detrimental to cognitive function, and we found it to be the most important trait of the five for managing through uncertainty.  In a highly risk-averse culture, this concept can feel abhorrent to many people. Countering the bias toward pessimism can be challenging. But attitude counts: Among the survey respondents, 70% said that their mindset has enabled them to make the most of the opportunities they have been afforded.