Article
How Best Leaders Make Great Decisions: The Real Art of Judgment Beyond the Myths
November 12, 2024
Leadership is often framed as an innate skill—a natural “gift” of foresight and intuition. But here’s the first myth we’ll debunk: great decision-making isn’t magic. One of my early mentors gave me the following feedback, “Rich, sometimes you treat a wisp of inspiration as if it were a four-lane highway. It’s not that you shouldn’t trust your intuition, you just need to validate it.” This is what I’ve learned since then. Through extensive research on personality and 360 ratings of behavior on nearly 2,000 executives from diverse industries worldwide, I’ve learned that strong decision-making is a disciplined approach to judgment that distinguishes top leaders from the rest. These leaders don’t fall for quick fixes or rely on intuition alone; they build their decision-making skill through a blend of analysis, emotional intelligence, and strategic insight. Let’s explore what our research reveals about how great leaders make great decisions, challenging some pervasive myths in the process.
Myth #1: Leaders Are Born with a ‘Gut’ for Good Decisions Many people picture a strong leader as someone who acts swiftly, relying on an almost mystical gut instinct. But from our research, it’s clear that while intuition has a role, exceptional leaders don’t lean solely on their gut. They’re analytical, dissecting problems and identifying root causes. They avoid knee-jerk reactions and use data and context as their foundation. Our findings show that leaders who rate high in analytical skills and problem identification are able to make consistently better decisions, thanks to their ability to weigh diverse inputs and arrive at well-considered conclusions.
Practical Takeaway: Before making a quick decision, ask if it’s really grounded in analysis or just a reflex. The best leaders in our study clarify problems, consider multiple perspectives, and evaluate risk. This balanced approach—where intuition complements, rather than overrides, analysis—ensures more sound and strategic decisions.
Myth #2: Strategic Vision Means Focusing Only on the Big Picture “See the forest, not the trees.” Sounds inspiring, right? But it’s also incomplete. In reality, great leaders don’t overlook details—they take a “zoom in, zoom out” approach to strategy. According to our research, the best leaders combine big picture thinking with a precise grasp of details, enabling them to adapt to short-term needs while aligning with long-term goals. These leaders balance the forest with the trees, recognizing that both perspectives are crucial for sound judgment in complex environments.
Practical Takeaway: When facing a decision, don’t just go with what looks right from a high level. Drill down into specifics and examine how each choice supports your goals, now and in the future. The best leaders, as our research shows, have honed the ability to navigate both the telescope and the microscope.
Myth #3: Real Leaders Are Decisive and Unwavering Sure, decisiveness is important. But our research underscores that the best leaders aren’t just fast—they’re deliberate. These executives make a thoughtful choice between action and patience, recognizing that impulsivity can backfire. Decisiveness isn’t about rushing; it’s about timing. Leaders who consistently rated high in follow-through also demonstrated this deliberation—when they act, they ensure their decision is fully executed, with a strong sense of timing and purpose.
Practical Takeaway: Avoid making decisions purely for the sake of speed. Reflect on whether a pause for more data or a moment of careful thought will yield a better choice. Our findings reveal that the most effective leaders don’t view deliberation as hesitation but as essential preparation.
Myth #4: Good Leaders Always Follow Their Convictions Leaders are often depicted as unbending in their beliefs. But our research reveals that top-performing leaders exhibit cognitive flexibility—they know when to adapt their thinking. Leaders who resist change or rigidly adhere to their convictions miss out on opportunities to pivot and adjust as new information emerges. The best leaders in our study are adaptable, unafraid to revise their strategies, and more likely to succeed in dynamic, complex environments.
Practical Takeaway: When you’re resistant to change, ask yourself if it’s pride or fear of flexibility that’s holding you back. The leaders in our research embrace adaptability as a strength. Remember, it’s not flip-flopping if you’re improving and evolving.
Myth #5: Risk-Takers Are the Only Ones Who Move the Needle Hollywood loves a risk-taker, but our research shows that top leaders don’t gamble recklessly. They’re experts at calculated risk-taking—distinguishing between acceptable and unacceptable risks. They use a structured approach to weigh outcomes and act when the potential benefits justify the risks. These leaders consistently achieve better results than those who approach risk blindly or avoid it altogether.
Practical Takeaway: When you’re facing a risky choice, evaluate the potential fallout and how well-prepared you are to handle it. Leaders in our study assess risk meticulously, positioning themselves for wins without courting disaster. This kind of measured risk-taking is a hallmark of sustainable leadership.
Myth #6: Emotional Intelligence Just Means Being “Nice” Emotional intelligence (EQ) is often misunderstood as “softness.” But high EQ is a critical tool for strategic influence. Leaders with high EQ manage their own emotions well, understand others’ perspectives, and build trust. They navigate conflict with finesse and inspire team buy-in. Our research shows that social confidence and diplomacy are vital qualities for leaders who master this emotional balance, building loyalty and morale that amplify their decision-making power.
Practical Takeaway: To develop EQ, start with self-awareness: identify your emotional triggers and examine how they influence your choices. Then, focus on understanding team dynamics. Our data show that leaders who tailor their approach to different people and situations build stronger teams and achieve better outcomes.
Myth #7: Complexity Requires Total Control Many leaders think that managing complexity means controlling everything. But our research with executives reveals that high-performing leaders know when to let go, fostering flexibility and encouraging innovation within their teams. They act as “guiding stars,” offering direction while empowering others to make decisions and solve problems on the ground. Leaders who rated highly in empowerment excelled in their roles by encouraging this autonomy, allowing their teams to shine within a shared framework of goals.
Practical Takeaway: Identify areas where you can empower your team. Shift from micromanaging to guiding, and trust that capable people can solve problems creatively. Our findings affirm that leaders who embrace this style often get better, more innovative results.
Myth #8: Leaders Must “Know It All” The myth of the omniscient leader is just that—a myth. Our research highlights that leaders who embrace intellectual humility achieve more sustainable success. By recognizing their limits, these leaders actively seek diverse perspectives and feedback. They’re not afraid to say, “I don’t know.” This openness fosters a culture of knowledge-sharing and insight that enriches the entire organization.
Practical Takeaway: Practice intellectual humility by regularly seeking feedback, not only from peers but from all levels of the organization. Our data show that leaders who do this avoid the pitfalls of overconfidence, making smarter decisions with the full benefit of collective insight.
Myth #9: Stress Should Be Suffered in Silence There’s a persistent belief that leaders need to handle stress internally, keeping it hidden. Yet, our research shows that resilience under pressure is key to good judgment. Leaders who manage stress effectively—through deliberate resilience practices—make clearer, more rational decisions. Those who prioritize mental and physical health maintain cognitive clarity, enabling better decision-making even under intense pressure.
Practical Takeaway: Make stress management a leadership priority. Incorporate resilience practices like meditation or structured breaks. Our findings reveal that resilience isn’t just personal—it impacts the quality of leadership judgment in high-stakes moments.
Myth #10: Leadership is All About Results Results matter, but the process of achieving them matters just as much. Great leaders know that good judgment balances outcomes with a reflective approach to how decisions are made. The leaders in our research use “double-loop learning,” where they don’t just evaluate whether a decision worked but also examine how the decision was made. This self-reflection keeps them growing and adapting, enabling them to learn from both wins and missteps.
Practical Takeaway: Regularly review your decision-making process, not just the outcomes. Ask, “What went right?” and “Where could we improve?” By focusing on continuous improvement, you evolve as a leader, making each decision sharper than the last.
The Bottom Line: Good Judgment is Crafted, Not Gifted Our research on nearly 2,000 executives has shown that good judgment isn’t a mystical talent. It’s a skill crafted over time, blending analytical thinking with empathy, risk management, resilience, and intellectual humility. Great leaders don’t rest on their innate abilities; they grow through disciplined reflection, calculated risk-taking, and a willingness to learn. By balancing data with insight, courage with caution, and strength with adaptability, they build decision-making practices that create lasting value and inspire those around them.
Myth #1: Leaders Are Born with a ‘Gut’ for Good Decisions Many people picture a strong leader as someone who acts swiftly, relying on an almost mystical gut instinct. But from our research, it’s clear that while intuition has a role, exceptional leaders don’t lean solely on their gut. They’re analytical, dissecting problems and identifying root causes. They avoid knee-jerk reactions and use data and context as their foundation. Our findings show that leaders who rate high in analytical skills and problem identification are able to make consistently better decisions, thanks to their ability to weigh diverse inputs and arrive at well-considered conclusions.
Practical Takeaway: Before making a quick decision, ask if it’s really grounded in analysis or just a reflex. The best leaders in our study clarify problems, consider multiple perspectives, and evaluate risk. This balanced approach—where intuition complements, rather than overrides, analysis—ensures more sound and strategic decisions.
Myth #2: Strategic Vision Means Focusing Only on the Big Picture “See the forest, not the trees.” Sounds inspiring, right? But it’s also incomplete. In reality, great leaders don’t overlook details—they take a “zoom in, zoom out” approach to strategy. According to our research, the best leaders combine big picture thinking with a precise grasp of details, enabling them to adapt to short-term needs while aligning with long-term goals. These leaders balance the forest with the trees, recognizing that both perspectives are crucial for sound judgment in complex environments.
Practical Takeaway: When facing a decision, don’t just go with what looks right from a high level. Drill down into specifics and examine how each choice supports your goals, now and in the future. The best leaders, as our research shows, have honed the ability to navigate both the telescope and the microscope.
Myth #3: Real Leaders Are Decisive and Unwavering Sure, decisiveness is important. But our research underscores that the best leaders aren’t just fast—they’re deliberate. These executives make a thoughtful choice between action and patience, recognizing that impulsivity can backfire. Decisiveness isn’t about rushing; it’s about timing. Leaders who consistently rated high in follow-through also demonstrated this deliberation—when they act, they ensure their decision is fully executed, with a strong sense of timing and purpose.
Practical Takeaway: Avoid making decisions purely for the sake of speed. Reflect on whether a pause for more data or a moment of careful thought will yield a better choice. Our findings reveal that the most effective leaders don’t view deliberation as hesitation but as essential preparation.
Myth #4: Good Leaders Always Follow Their Convictions Leaders are often depicted as unbending in their beliefs. But our research reveals that top-performing leaders exhibit cognitive flexibility—they know when to adapt their thinking. Leaders who resist change or rigidly adhere to their convictions miss out on opportunities to pivot and adjust as new information emerges. The best leaders in our study are adaptable, unafraid to revise their strategies, and more likely to succeed in dynamic, complex environments.
Practical Takeaway: When you’re resistant to change, ask yourself if it’s pride or fear of flexibility that’s holding you back. The leaders in our research embrace adaptability as a strength. Remember, it’s not flip-flopping if you’re improving and evolving.
Myth #5: Risk-Takers Are the Only Ones Who Move the Needle Hollywood loves a risk-taker, but our research shows that top leaders don’t gamble recklessly. They’re experts at calculated risk-taking—distinguishing between acceptable and unacceptable risks. They use a structured approach to weigh outcomes and act when the potential benefits justify the risks. These leaders consistently achieve better results than those who approach risk blindly or avoid it altogether.
Practical Takeaway: When you’re facing a risky choice, evaluate the potential fallout and how well-prepared you are to handle it. Leaders in our study assess risk meticulously, positioning themselves for wins without courting disaster. This kind of measured risk-taking is a hallmark of sustainable leadership.
Myth #6: Emotional Intelligence Just Means Being “Nice” Emotional intelligence (EQ) is often misunderstood as “softness.” But high EQ is a critical tool for strategic influence. Leaders with high EQ manage their own emotions well, understand others’ perspectives, and build trust. They navigate conflict with finesse and inspire team buy-in. Our research shows that social confidence and diplomacy are vital qualities for leaders who master this emotional balance, building loyalty and morale that amplify their decision-making power.
Practical Takeaway: To develop EQ, start with self-awareness: identify your emotional triggers and examine how they influence your choices. Then, focus on understanding team dynamics. Our data show that leaders who tailor their approach to different people and situations build stronger teams and achieve better outcomes.
Myth #7: Complexity Requires Total Control Many leaders think that managing complexity means controlling everything. But our research with executives reveals that high-performing leaders know when to let go, fostering flexibility and encouraging innovation within their teams. They act as “guiding stars,” offering direction while empowering others to make decisions and solve problems on the ground. Leaders who rated highly in empowerment excelled in their roles by encouraging this autonomy, allowing their teams to shine within a shared framework of goals.
Practical Takeaway: Identify areas where you can empower your team. Shift from micromanaging to guiding, and trust that capable people can solve problems creatively. Our findings affirm that leaders who embrace this style often get better, more innovative results.
Myth #8: Leaders Must “Know It All” The myth of the omniscient leader is just that—a myth. Our research highlights that leaders who embrace intellectual humility achieve more sustainable success. By recognizing their limits, these leaders actively seek diverse perspectives and feedback. They’re not afraid to say, “I don’t know.” This openness fosters a culture of knowledge-sharing and insight that enriches the entire organization.
Practical Takeaway: Practice intellectual humility by regularly seeking feedback, not only from peers but from all levels of the organization. Our data show that leaders who do this avoid the pitfalls of overconfidence, making smarter decisions with the full benefit of collective insight.
Myth #9: Stress Should Be Suffered in Silence There’s a persistent belief that leaders need to handle stress internally, keeping it hidden. Yet, our research shows that resilience under pressure is key to good judgment. Leaders who manage stress effectively—through deliberate resilience practices—make clearer, more rational decisions. Those who prioritize mental and physical health maintain cognitive clarity, enabling better decision-making even under intense pressure.
Practical Takeaway: Make stress management a leadership priority. Incorporate resilience practices like meditation or structured breaks. Our findings reveal that resilience isn’t just personal—it impacts the quality of leadership judgment in high-stakes moments.
Myth #10: Leadership is All About Results Results matter, but the process of achieving them matters just as much. Great leaders know that good judgment balances outcomes with a reflective approach to how decisions are made. The leaders in our research use “double-loop learning,” where they don’t just evaluate whether a decision worked but also examine how the decision was made. This self-reflection keeps them growing and adapting, enabling them to learn from both wins and missteps.
Practical Takeaway: Regularly review your decision-making process, not just the outcomes. Ask, “What went right?” and “Where could we improve?” By focusing on continuous improvement, you evolve as a leader, making each decision sharper than the last.
The Bottom Line: Good Judgment is Crafted, Not Gifted Our research on nearly 2,000 executives has shown that good judgment isn’t a mystical talent. It’s a skill crafted over time, blending analytical thinking with empathy, risk management, resilience, and intellectual humility. Great leaders don’t rest on their innate abilities; they grow through disciplined reflection, calculated risk-taking, and a willingness to learn. By balancing data with insight, courage with caution, and strength with adaptability, they build decision-making practices that create lasting value and inspire those around them.
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Let's be brutally honest. In the cutthroat world of modern business, we obsess over metrics, strategies, and market share. We chase innovation, efficiency, and the next big disruption. But what if I told you that the single most powerful, yet often overlooked, asset in your leadership arsenal isn't a new technology or a groundbreaking business model, but something far more fundamental? It's trust . Research reveals that trust isn't just a "nice-to-have" soft skill; it's the bedrock of every high-performing team, the fuel for innovation, and the hidden engine of organizational success. Ignore it at your peril, because the cost of low trust isn't just a dip in morale—it's a direct hit to your bottom line, your talent pipeline, and your legacy as a leader. The Uncomfortable Truth: Trust is Your Most Valuable Capital Think of trust not as an abstract concept, but as tangible capital for your organization. It’s the "first step of genuine and effective leadership". Without it, people simply won't follow you. This isn't hyperbole; it's a stark reality backed by compelling data. Companies with high trust factors report staggering benefits: 74% less stress, 13% fewer sick days, and a remarkable 40% less burnout among employees compared to their low-trust counterparts. This translates directly into reduced operational costs and a healthier, more engaged workforce. Employees in high-trust organizations are also 50% more likely to stay with their employer long-term, drastically cutting turnover costs and retaining invaluable talent. Beyond retention, trust ignites collaboration. When your team trusts each other and you, they share ideas freely, seek help without hesitation, and work cohesively towards shared goals. This isn't just about being "nice"; it leads to more innovative solutions, superior problem-solving, and a cohesive, high-performing workforce. Google's own Project Aristotle, a deep dive into team effectiveness, concluded that high-performing teams are simply impossible without trust. It is the very bedrock for open communication and innovation. A high-trust environment also minimizes micromanagement, granting employees the autonomy and confidence to make decisions and focus on meaningful work, boosting productivity and efficiency. And the ripple effect extends outward: employees who feel trusted and respected internally are far more likely to deliver exceptional customer service, enhancing brand loyalty and driving business growth. So, if trust is so powerful, why do so many leaders struggle with it? The Three Non-Negotiable Pillars: Where Leaders Often Stumble Research has identified three fundamental pillars of trustworthiness: Ability, Integrity, and Benevolence . Here's the critical, often misunderstood, part: trustworthiness is a product of these three, not a sum. This means if you score a zero in any one of these areas, your overall trustworthiness plummets to zero, regardless of how stellar you are in the others. Let that sink in. You can be a brilliant strategist (high Ability), but if your team perceives you as dishonest (zero Integrity), your trust account is empty. You can be the most ethical person in the room (high Integrity), but if you consistently fail to deliver on promises (zero Ability), trust evaporates. And perhaps the most insidious blind spot for many leaders: you can be competent and honest, but if you lack genuine care and kindness for your team (zero Benevolence), you will not be trusted. Let's break them down: Ability: This is your professional competence – your skills, knowledge, and, most importantly, your consistent delivery on promises. As one CEO put it, "Trustworthiness is about doing what it says on the tin". If you say you'll do something, do it. Period. Integrity: This is "walking the talk." It's about being reliable in your behaviors, consistently upholding your values, and demonstrating honesty, openness, and fairness. Even a minor ethical slip from years ago can permanently damage a leader's perceived integrity. Benevolence: This is the genuine concern for the well-being of others – care, generosity, and kindness. The most potent destroyer of trust is the perception that you're acting solely in your own self-interest. Leaders who publicly humiliate or criticize team members, even if they are otherwise capable, will struggle to build trust due to a glaring lack of benevolence. It’s time to "re-humanize the workplace". The Blueprint for Building Unshakeable Trust Building trust is a deliberate, ongoing process. It requires conscious effort and consistent action. Here's how leaders who truly get it cultivate high-trust environments: Be Authentically Transparent and Accountable: Authenticity is the very foundation of trust. Be open about your intentions, share insights into decision-making, and, crucially, admit your mistakes. When you own your fallibilities, you create a psychologically safe environment where others feel safe to do the same. This vulnerability, counter-intuitively, builds immense trust. Practice Radical Empathy and Active Listening: Empathetic leaders genuinely value their employees' needs and desires. Respect is the "cornerstone of trust". This means not just hearing, but actively listening – giving full attention, asking clarifying questions, paraphrasing to confirm understanding, and empathizing with their feelings. It signals genuine value for their input and builds a deeper connection. Be a Beacon of Consistency and Reliability: Consistency is paramount, especially when paired with empathy. Your actions must consistently match your words. Reliability is, in fact, the top trust-building factor identified by business leaders, with 90% considering it important. When your team knows what to expect from you, uncertainty diminishes, and trust flourishes. Cultivate Mindfulness and Self-Awareness: This isn't just a wellness trend; it's a leadership imperative. Mindfulness enhances your cognitive capacity, flexibility, and ability to "re-perceive" situations objectively. It improves self-awareness and self-regulation, ensuring your actions align with your values, not just automatic reactions. A mindful leader is better equipped to exhibit all the behaviors necessary for building trust. Champion Fairness and Resolve Conflict: Leaders who fairly distribute rewards, maintain transparency, and enforce unbiased policies build trust. Addressing fears and resolving conflicts quickly and fairly strengthens team trust, enhancing collaboration and engagement. The Silent Sabotage: How Leaders Accidentally Destroy Trust Now for the uncomfortable part. Many leaders, often with good intentions, inadvertently erode trust through subtle behaviors that chip away at the foundation. These aren't always malicious acts, but rather blind spots that have devastating consequences: Inconsistent Actions and Unkept Commitments: You say one thing but do another. You make promises, even small ones, and fail to follow through. This gap between words and deeds is a trust killer, making teams feel unheard and disengaged. Lack of Transparency and Disengagement: You sideline key stakeholders in decisions, offer inconsistent messaging, or simply become physically or emotionally unavailable. This signals a profound lack of investment and erodes confidence, often without you even realizing the impact. Micromanagement and Disrespect for Time: You constantly hover, dictate every detail, or retract delegated tasks. This screams, "I don't trust you to do your job," leading to a reciprocal loss of trust. Similarly, frequent reschedules, unreturned messages, or unnecessary meetings signal that your team's time isn't valued, breeding resentment. Unethical Behavior and Compromising Values: Even a seemingly minor ethical lapse can permanently damage your integrity. When you compromise the organization's core values, your team notices, and their trust in your leadership crumbles. Ignoring Performance Issues: When a team member isn't pulling their weight or is negatively impacting the team, and you "look the other way," it demoralizes everyone else. It signals a lack of fairness and accountability, eroding trust in your leadership. Displaying Superiority or Losing Composure: Acting superior, undervaluing team perspectives, or losing your temper in communications makes employees feel disrespected and unheard. The "One-Size-Fits-All" Fallacy: Applying a uniform leadership style to diverse, multicultural teams can be perceived as autocratic and lead to a significant loss of trust, as it ignores crucial cultural nuances. Expecting Others to Earn Your Trust Without Reciprocating: You demand trust from your team, but you don't extend it first. Healthy relationships, including professional ones, are never one-sided. The Passive "My Door Is Always Open": Simply saying "my door is always open" is not enough. If you don't actively seek input, schedule check-ins, and create safe spaces for dialogue, many voices will remain unheard, and trust will not grow. The Devastating Fallout: What Happens When Trust Dies The consequences of low trust are not theoretical; they are devastatingly real: Disengagement and High Turnover: Energy and enthusiasm drain away. Individuals feel undervalued, leading to high turnover rates, decreased productivity, and widespread dissatisfaction. Friction and Unresolved Conflict: Without trust, conflicts escalate. Teams avoid addressing issues, engage in "polite nodding" without genuine agreement, or resort to passive-aggressive behaviors and gossip, creating a toxic atmosphere. Stifled Innovation: The fear of rejection or ridicule suppresses creativity. Teams hesitate to propose new ideas or challenge the status quo, leaving the organization stagnant and vulnerable to competitors. Lack of Feedback and Misunderstandings: Team members are reluctant to give or seek feedback, fearing judgment or repercussions. This means valuable insights go unshared, and opportunities for growth are missed. Negative assumptions about intentions lead to strained relationships and a focus on self-protection over collaboration. Low Confidence and Indecision: Individuals second-guess their abilities, doubt decisions, and hesitate to take risks, further stifling creativity and progress. Your Call to Action: Reclaim Your Superpower Trust is not built overnight, nor is it maintained passively. It requires consistent, deliberate effort. If trust has been eroded, it can be rebuilt, but it demands honesty, humility, and sustained action. Acknowledge your missteps, own them, and commit to consistent behaviors that prove your reliability over time. Re-engage with your team, prioritize benevolence, and shift from demanding trust to actively earning it. In today's complex and rapidly changing world, trust is not just a competitive advantage; it's a prerequisite for survival. Leaders who master the art and science of building and sustaining trust will not only foster more engaged, innovative, and productive teams but will also forge a legacy of true, impactful leadership. Are you ready to unlock your ultimate leadership superpower? The choice, and the action, is yours.
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