Get All Access for $5/mo

The 5 Pitfalls of Decision-Making, and How to Avoid Them It's important for leaders to set the 'organizational guardrails' that foster a single, uniformed direction.

By Jeff Boss Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

There's a reason for the saying, "It's lonely at the top." Contrary to popular belief, the hallmark of effective leadership doesn't solely rely on the decisions a leader makes but rather how he or she sets the conditions for followers to live and learn, read and react, and decide for themselves as information becomes available.

Without the right information, decision-making, and therefore, progress, doesn't happen. This is why it's so important for leaders to set the "organizational guardrails" that foster a single, uniformed direction. Here are five common pitfalls to decision-making -- and how leaders can avoid them:

1. Lack of clear guidance. If leaders don't set parameters early on, the propensity for uncertainty to develop only worsens. More so, the one-off conversations and random interruptions prevent any real work from getting done because people are unsure of their decision-making authority.

Related: Why Good Employees Make Bad Decisions

Remedy: Consider the opposite perspective. The advantage to such looming uncertainty is that it affords the very opportunity to create certainty by setting the direction. I am of the mindset that it's better to beg for forgiveness than to ask for permission. If you're taking incoming mortar rounds, there is no wrong answer for what direction to move in, just so long as you move.

2. Unclear purpose. Not understanding the why behind a decision is akin to driving from Florida to Connecticut without a map. You want to know where you're going so you can determine the best route to get there. Otherwise, you're just wasting gas.

Remedy: Identify who or what a decision is for. Is it something that benefits the organization, the team or the individual? Will the decision impact a greater audience or just you? If it's the latter, be sure to remove as much emotion as possible from your decision by looking at the positive outcomes it will yield (you can always find something positive).

3. Define the meeting. One way to make sure you don't walk away from the next meeting with your eyes crossed is to know the type of meeting that will take place. There are three types of meetings that occur and each possess a different purpose with a different outcome:

  • Informative: These are meetings where updates, status reports and lessons learned are shared to build the "knowledge bridge" to the next milestone and to close the gap between silos and business functions. Remember, knowledge is not power, but sharing it is.
  • Collaborative: Once the proverbial ship has sailed (an initiative is underway), it's time to figure out the best route to get there, and this happens through group participation. Collaborative meetings help flush out what decisions need to be made in an effort to collectively solve a business challenge.
  • Decisive: The ship's captain reels in all the swimmers from the water and says, "Don't swim. Fix the boat instead." In other words, decision-making meetings offer feedback to ensure your efforts are aligned with organizational priorities and ready to navigate into uncharted territory.

Related: What Bad Managers, Good Managers and Great Managers Do

4. Lack of autonomy. While decisions should be based upon their collective benefit for all (at least, in an organizational setting), how you go about making that decision should be your own. In other words, relying on other peoples' input as a basis for your own decision-making is dependent, whereas gathering input to broaden your knowledge base so you can make your own choice is independent. The copy-and-paste approach works short term until that coworker leaves, along with your ability to solve problems.

Remedy: For the next week, record how many times you conferred with somebody over a decision and why. Were you looking for an alternative perspective to help broaden yours so you could make a more informed decision? Or were you secretly hoping for that person to make the decision for you?

5. Wrong people, wrong place. Integral to decision-making is having the power (defined as credibility and knowledge) to grab the gavel and say, "This decision makes sense. Let's do it." Many meetings go through an iterative process simply because the wrong people are in the room.

Remedy: If you require strategic decisions then you need strategic leaders. The stated outcome of a meeting determines who should be present so the meeting's objective can be achieved.

The more a leader can set the conditions for his or her people to make decisions the more time he or she can dedicate to strategy and business growth.

Related: 4 Fundamentals to Inspire Leadership Within Your Company

Jeff Boss

Leadership Team Coach, Author, Speaker

Jeff Boss is the author of two books, team leadership coach and former 13-year Navy SEAL where his top awards included four Bronze Stars with valor and two Purple Hearts. Visit him online at www.jeff-boss.com

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

At Age 15, He Used Facebook Marketplace to Start a Side Hustle — Then It Became Something Much Bigger: 'Raised Over $1.6 Million'

Dylan Zajac, now a 21-year-old senior at Babson College, wanted to bridge the digital divide.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Innovation

These Entrepreneurs Created a League That Turns Gamers Into Pro Race Car Drivers: 'We're Giving Drivers a Sustainable Career Path'

Racing Prodigy's innovative E2Real sports league is lowering the high-cost barrier to entry for drivers to take their passion to the track.

Science & Technology

Machines Are Surpassing Humans in Intelligence. What We Do Next Will Define the Future of Humanity, Says This Legendary Tech Leader.

Craig Mundie, co-author of "Genesis: Artificial Intelligence, Hope and The Human Spirit" dives into the unrivaled power of AI.

Side Hustle

'I Just Hustled': She Earned More Than $300,000 Wrapping Gifts Last Year — and It All Started With a Side Hustle

When Michelle Hensley lost her husband to cancer, she needed to figure out how to earn an income for her family.

Business News

OpenAI Just Released Its Text-to-Video Generator, Sora. Here's How the New AI Could Impact Small Businesses and Creators.

Sora has a variety of use cases for businesses, from social media campaigns to video creation.