How do leaders make tough decisions?

Effective leaders make tough decisions by gathering trusted advice, verifying information independently, maintaining self-belief, and being willing to act decisively even with incomplete information. The key is to make the best decision possible with the knowledge available, then move forward without second-guessing. If circumstances change, adapt and reverse course if needed.

What is groupthink and why is it dangerous?

Groupthink occurs when everyone in a team plays it safe, echoes the same ideas, and stops genuinely thinking or challenging assumptions. It is dangerous because it creates an illusion of consensus that masks poor decision-making. Leaders should guard their independence, listen and consult broadly, then make their own assessment rather than deferring to the loudest voice in the room.

How do you know when to reverse a decision?

You should reverse a decision when the circumstances that informed it have materially changed. Accepting that you were right at the time but are now wrong is tough, but holding off and making no decision is likely to be far worse in the long run. It is better to keep moving, adapting, and learning than to freeze in place out of fear of admitting a mistake.

Why is playing it safe sometimes more dangerous than taking risks?

Playing it safe often reflects natural inertia against change, not genuine risk assessment. A lack of change can be just as risky as a chaotic environment. In business, leaders must constantly assess, price, and value risk rather than defaulting to the path of least resistance. Choosing inaction to avoid discomfort is not risk management; it is avoidance.

Dealing with Tough (Very Tough) Decisions

Key Takeaways

After making a tough decision, the main thing you will reflect on: "I wish I'd done it sooner."
Don't sweat the small stuff, and it is almost always all small stuff. Make the decision and move on.
Guard your independence fiercely. When everyone is thinking the same, someone is not thinking.
Playing it safe can be very dangerous. Don't make a decision just because it offers the path of least resistance.
Hoping for the best is not a strategy. Self-belief, a clear strategy, and decisive action are what matter.

Every now and then we have to deal with a very hard decision that challenges us in a lot of ways, whether it is personal, business, staff or strategic. We feel stretched to our limits. It is tough. Really, really tough.

No, we are not talking about firing a difficult employee (although that can create a lot of personal angst for many), or a performance review that is unfair or fair but poor, or even losing your job (while tough, it is not a decision you are making; what comes next can be tougher).

This is about the sort of challenge that comes out of left field, is totally outside your expertise, and you have no experience or knowledge to even begin addressing it. You freeze. Complete blank. What next?

When that cold chill runs through you: am I up to this? Do I deserve to be in charge if I don't immediately know what to do?

So here are my top tips for dealing with seriously tough stuff.

PRINCIPLE 1

Don't Sweat the Small Stuff, and It Is Almost Always All Small Stuff

If it is a decision you have to make, do it, and don't keep second guessing yourself, living with regret or re-living it.

You made a decision with the best knowledge you had at the time. Full stop.

Things may have changed since then. Don't sweat it. If you have to change or reverse course then do it. It is better to keep moving, adapting and learning than to have frozen in place and done nothing in fear of making the wrong decision.

PRINCIPLE 2

Take Control and Take Advice

If you don't know (and there is no way you can be expected to know everything), find people you can trust who are not just trying to sell you an on-going problem so they can deliver you an on-going stream of advice.

Check and verify everything. Just because someone states something with great belief and lots of affirmations does not mean they know anything relevant to your decision.

Remember: Common sense is the least common thing in the world. Confidence is not the same as competence.

PRINCIPLE 3

The Power of "NO"

Most people are afraid to give a firm no.

People rush to us wanting a quick answer, giving a limited amount of information and wanting a quick and positive answer. Remember: your time is a very precious commodity. Be fair but confident:

"If you need a quick answer now based on your absolute priority, then the answer is no."

"If you would like to provide the information we all need to make a proper and informed decision then come back to me then and we can revisit it."

PRINCIPLE 4

"When Everyone Is Thinking the Same, Someone's Not Thinking!"

The power of group think is immense. This is where everyone plays it safe, spouts the same lines and stops thinking and challenging.

Don't let others speak for you or make decisions for you. Guard your independence fiercely. Listen, consult, question, assess, then decide and move on.

The smartest people can take a vastly complex issue and simplify it to the point where an intelligent but uninformed manager can understand the problem. Surround yourself with these people. They are great in a team.

PRINCIPLE 5

Safe Words: Playing It Safe Can Be Very Dangerous

Most people, particularly staff and boards, hate change. They like things to stay the same so they don't have to learn a new way and stretch themselves.

This natural inertia against change is often considered to be risk averse. It is not. A lack of change can be just as risky as a totally chaotic environment.

Don't make a decision just because it offers the path of least resistance. In business, we are always assessing risk as a core part of the role. Don't be afraid of risk. Assess it, price it, value it.

PRINCIPLE 6

Change

In business, things change all the time. What looks like a great solution one day will not be the next, or soon after that.

Accepting you were right at the time, but you are now wrong, is tough. It knocks you back on your heels and leads to more self-examination. When you don't know, say so. When you want advice, information or input, ask for it.

Holding off and making no decision is likely to be far worse in the long run.

PRINCIPLE 7

Just Do It

You need self-belief, a core of what you will and will not do, what is right and wrong, what your business is. This is not about going with your "gut".

It is about not just taking the easy road and letting the loudest voice in the room, the most senior director or Chairman, the slickest presenter or the best salesman speak for you or make decisions for you.

You need to believe you can take control, choose a strategy, make a decision and meet the challenges.

Hoping for the best is not a strategy.

Frequently Asked Questions

Ross McCreath

Contributor, Dreamoro