Making Good Decisions Faster: Striking the Right Balance for Financial Executives
January 8, 2025
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2 minute read – Colin Powell famously said that he needed between 40% and 70% of the information necessary for a decision. His reasoning? With less than 40% of the necessary information, you risk making a poor decision. But if you wait for more than 70%, it might be too late—the opportunity will have passed. This principle is particularly relevant for financial institution executives, who must navigate a fast-paced environment while balancing collaboration and decisive action.
The Art of Timely Decision-Making
Making decisions with limited information in a short period is often a necessity in leadership roles. Executives aim to make the best decisions at the right time using the information available. Dr. Dan Harrison’s concept of “Instinctive Logic”—the ability to balance analytical thinking with intuition—is a critical skill. Leaders overly reliant on analysis risk paralysis, while those who lean too heavily on intuition may struggle to justify their choices.
For financial institution leaders, the goal is not perfection but sound, timely decisions that align with organizational objectives. Here are actionable steps to improve decision-making:
- Clarify Objectives: Clearly define the goal of the decision.
- Set Time Limits: Allocate a specific timeframe for gathering information.
- Prioritize Factors: Identify the most critical factors influencing the decision.
- Narrow Options: Focus on the top three to five viable choices.
- Leverage Collaboration: Consult with your team to identify blind spots and refine your approach.
- Trust Your Intuition: Combine data analysis with experience-based intuition to make a confident choice.
By adopting this approach, leaders can balance the need for thoroughness with the urgency of decision-making, driving their organizations forward.
*Portions of this blog were edited with the assistance of AI.
