{"id":4202,"date":"2022-03-14T09:00:00","date_gmt":"2022-03-14T13:00:00","guid":{"rendered":"https:\/\/snapreads.com\/magazine\/?p=4202"},"modified":"2023-12-27T16:56:29","modified_gmt":"2023-12-27T21:56:29","slug":"make-the-best-decision","status":"publish","type":"post","link":"https:\/\/snapreads.com\/magazine\/make-the-best-decision\/","title":{"rendered":"11 Simple Tricks High-Performing CEOs Use to Always Make the Best Decision"},"content":{"rendered":"\n

There\u2019s a lot riding on a CEO. If the average adult makes about 35,000 decisions per day, imagine how many decisions a CEO has to make, with an entire company depending on their good judgment! As a result, they\u2019ve had to develop some brilliant ways to ensure they always choose correctly.<\/p>\n\n\n\n

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\"Thinking<\/figure>\n<\/div>\n\n\n
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Thinking Fast and Slow<\/h2>\n\n\n\n

by Daniel Kahneman<\/p>\n\n\n\n

\u23f1 12 minutes reading time<\/p>\n\n\n\n

\ud83c\udfa7 Audio version available<\/p>\n<\/div><\/div>\n\n\n\n

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Get the key ideas on Snapreads<\/a><\/div>\n<\/div>\n\n\n\n

Buy on Amazon<\/a><\/p>\n\n\n\n

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Have a Devil\u2019s Advocate<\/strong><\/h2>\n\n\n\n

A great CEO knows that no one person can possibly see every angle, every time. That\u2019s why appointing someone to propose a contentious opinion is a common technique the best use.<\/p>\n\n\n\n

A devil\u2019s advocate is someone who expresses an opposing opinion in order to A)<\/strong> provoke further debate and B)<\/strong> test the strength of the decision in question. Assigning a devil\u2019s advocate on your team can actually make discussions more efficient. It also helps identify any weaknesses. Which sounds more convincing? Having someone on your team point out possible contingencies before they actually take place or discovering them after it\u2019s too late?<\/p>\n\n\n\n

Stop Reacting<\/strong><\/h2>\n\n\n\n

A lot of people go through life merely reacting <\/em>to situations. In business, or when trying to lead <\/em>a business, simply reacting can\u2019t cut it when it comes to making vital decisions that affect your company and the people working for you.<\/p>\n\n\n\n

A talented CEO eventually learns\u2013 whether that\u2019s through trial and error or through being warned firsthand\u2013 that there\u2019s a difference between reacting and making a decision in the spur of the moment versus making a decision based on a gut feeling, though that\u2019s something we\u2019ll touch on later.<\/p>\n\n\n\n

So, instead of reacting when someone comes to them with an alarming issue or an operational problem, what do high-performing CEOs do? If they don’t have a plan, they sit back and think.<\/p>\n\n\n\n

Example? Take Elon Musk, who figured out a way that\u2019s \u201creally helpful for figuring out the tricky things.\u201d His trick involves six simple steps.<\/p>\n\n\n\n

Number one is asking a question.<\/p>\n\n\n\n

Number two is gather as much evidence about the decision as he can.<\/p>\n\n\n\n

Number three is developing axioms, which are statements accepted as true as the basis for argument or inference, and then assigning a probability of truth to each of them.<\/p>\n\n\n\n

The fourth step is reaching a conclusion based on cogency\u2013 the quality of being logical\u2013 and determining whether these axioms are true, their relevance, if they lead to the conclusion, and with what probability.<\/p>\n\n\n\n

Once that\u2019s done, Elon Musk likes to find a devil\u2019s advocate to disprove the conclusion he just reached. At this step, he asks others to break down his conclusion.<\/p>\n\n\n\n

If no one can break down the conclusion or invalidate it, he goes with the decision. Now, he can say that the decision was strategic, driven by data, and is protected against possible outcomes.<\/p>\n\n\n\n

Balance Risk and Reward<\/strong><\/h2>\n\n\n\n

There\u2019s always going to be some sort of risk involved\u2013 that\u2019s true in both business and real-life decisions. That\u2019s why it\u2019s important to balance taking risks and measuring the rewards you could reap.<\/p>\n\n\n\n

Think about it. The majority of CEOs regret the decisions they didn\u2019t <\/em>make the most\u2013 or they regret the decision that they made too soon or too late. And that\u2019s why most CEOs prefer using risk-aversive strategies. But then this happens, the company is kept in a static state. Rather than making headway towards the next goal, the company may instead fall behind.<\/p>\n\n\n\n

Taking calculated<\/em>, strategic risks is the way to go\u2013 at least according to Anne Mulchay, the chairman and former CEO of Xerox, who says being too risk-averse and too analytically driven held them back. Mulcahy added that, by the time they reached a decision, someone else had beaten them to it.<\/p>\n\n\n\n

Make Fewer <\/em>Decisions!<\/strong><\/h2>\n\n\n\n

Is that true? Making fewer <\/em>decisions leads you to make better decisions? Yes! Just ask Mark Zuckerberg or Steve Jobs\u2013 or even former President Barack Obama. All these successful figures share that they nitpicked every decision they were set to make and delegated what they could.<\/p>\n\n\n\n

If you\u2019ve seen Zuckerberg\u2019s iconic t-shirt and jeans combo\u2013 or Jobs\u2019 indelible black turtlenecks, then you\u2019ve already seen how they implement this strategy. This strategy keeps them from wasting time and effort that should be conserved for more important choices.<\/p>\n\n\n\n

Delegate<\/strong><\/h2>\n\n\n\n

Speaking of making fewer decisions, you\u2019ll find that the best CEOs aren\u2019t afraid to delegate. CEOs feel the need to be responsible for every single decision for the company, but where does that lead? It\u2019s a one-way ticket to experiencing what\u2019s known as \u201cdecision fatigue.\u201d<\/p>\n\n\n\n

Decision fatigue is when you get too burnt out to make sound and effective decisions. So, you\u2019re actually headed the wrong way when it comes to making the best decisions and are therefore, more likely to make poor choices.<\/p>\n\n\n\n

Think of your mind as a reservoir, with a limited number of decisions you can use. The more you draw from it, drain it, the harder it is to have the best, most beneficial, and most rational line of thinking.<\/p>\n\n\n\n

That\u2019s where your trusted team comes in. Find someone you trust who has the experience and authority necessary to aid you. You\u2019ll find that your business will thrive as it\u2019s filled with a well-rounded team of talented, fulfilled employees who can make valuable decisions.<\/p>\n\n\n\n

Always Say the \u201cWhat\u201d and the \u201cWhy\u201d<\/strong><\/h2>\n\n\n\n

Whenever you make a decision surrounded by your team of employees or stakeholders, it\u2019s always important to know the answer to all the \u201cwhy\u201d and \u201cwhat\u201d questions they may have. This means you\u2013 and by extension, your team\u2013 need to further understand why you should go with a choice or not.<\/p>\n\n\n\n

The opposite option is not communicating your point of view, which leads to teams finding it more difficult to support and execute what you told them.<\/p>\n\n\n\n

Always Be One Step Ahead<\/strong><\/h2>\n\n\n\n

What does being one step ahead entail? It\u2019s easier than you think! If you\u2019re one step ahead, you will find you rarely fumble or are unsure.<\/p>\n\n\n\n

That means that you know everything there is to know about the competition, for example. You\u2019ll never make the best decisions for your company if you have no idea what curveballs may be thrown at you in the market.<\/p>\n\n\n\n

Being a step ahead means always looking forward to the future\u2013 and not only that, but planning for growth. It means staying on top of whatever developments are happening in your industry, following consumer trends, and not being afraid to invest in new methods and technology.<\/p>\n\n\n\n

Be Confident, Honest, and Humble<\/strong><\/h2>\n\n\n\n

According to Mark Fukunaga, the CEO of Servco, confidence, honesty, and humility are what you need in order to be a great decision-maker.<\/p>\n\n\n\n

He breaks it down like this: confidence is what pushes you to not being afraid of taking risks and helps you handle uncertainty.<\/p>\n\n\n\n

He picked honesty\u2013 honesty with yourself\u2013 because self-doubt isn\u2019t <\/em>one of the traits a CEO should have. Fukunaga calls it self-deception, and says it\u2019s a CEO\u2019s \u201cbiggest enemy.\u201d<\/p>\n\n\n\n

Finally, humility keeps you grounded. He also says it\u2019s to avoid becoming too<\/em> invested in an idea. That means being ready to drop an idea and picking another when you realize it\u2019s the better choice.<\/p>\n\n\n\n

Let Go of Small Fumbles<\/strong><\/h2>\n\n\n\n

So you dropped the ball once, so what? Name one CEO who hasn\u2019t. I bet you can\u2019t. Everyone makes mistakes. Expecting to be the exception can lead to either excessive self-doubt or arrogance\u2013 both will drive you crazy.<\/p>\n\n\n\n

Instead of dwelling on the past, if you make an error, own up to that mistake, take responsibility for it, and learn <\/em>from it. Now, the next decision you make is automatically a better one because you have more experience.<\/p>\n\n\n\n

Simplify<\/strong><\/h2>\n\n\n\n

One of the top simple tricks high-performing CEOs use is literally the title: simplify<\/em>.<\/p>\n\n\n\n

Instead of looking at an issue as a \u201ccomplicated problem,\u201d realize there is only \u201ccomplicated thinking.\u201d<\/p>\n\n\n\n

Yes, there\u2019s a big decision ahead. So simplify it as much as you can. Lay down the steps, your goal, the potential outcomes, et cetera. When you have all the parts laid out in front of you, decisions become easier.<\/p>\n\n\n\n

\nhttps:\/\/youtu.be\/tzT_d3vAVMw\n<\/div><\/figure>\n\n\n\n

Stick To Your Gut<\/strong><\/h2>\n\n\n\n

Amazon CEO, Jeff Bezos, has decisions broken down into Type 1 and Type 2. To quote his newsletter, Type 1 decisions are <\/p>\n\n\n\n

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\u201cconsequential and irreversible or nearly irreversible – one-way doors – and these decisions must be made methodically.\u201d<\/p>\n<\/blockquote>\n\n\n\n

However, he admits that Type 2 decisions, which are \u201cchangeable, reversible – two-way doors\u201d and that they \u201cshould be made quickly by high judgment individuals or small groups.\u201d<\/p>\n\n\n\n

So, if the world\u2019s richest man agrees you need good judgment to make decisions, even if they\u2019re reversible, you must see the truth in his words.<\/p>\n\n\n\n

Decisions are going to come your way\u2013 and you may not have data to fall back on or even have time to analyze the best outcome. That\u2019s why you should trust your gut. There\u2019s a reason why you<\/em> are the CEO. A gut feeling is an instinct you\u2019ve honed over the years. It\u2019s based on countless experiences. And it is the reason why you make the best judgments you can based on the limited information you have at the moment.<\/p>\n\n\n\n

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There\u2019s a lot riding on a CEO. 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