Making tough decisions is an essential part of being of running a successful business. However, it can be challenging and even scary at times to make choices that might embarrass you or impact others negatively. This is where Colin Powell’s rule of thumb for decision-making can be useful.
According to Powell, when faced with a tough decision, you should aim to have between 40% and 70% of the information you need to make the decision. Having less than 40% of the information means you might make mistakes, while having more than 70% might cause you to miss out on opportunities. This rule allows you to make informed decisions without getting bogged down by excessive information.
Another crucial aspect of decision-making is intuition. Great leaders trust their instincts and use their intuition to make tough decisions. They understand that it’s impossible to have complete certainty in every decision and instead focus on gathering enough information to make an informed choice.
Leaders who crave certainty in their decisions often end up working for others rather than leading themselves. Therefore, as a CEO, it’s essential to gather enough information to make an informed decision and then trust your gut to make the best choice possible.
In conclusion, making tough decisions is a hallmark of effective leadership. By following Colin Powell’s rule and using intuition to guide decision-making, you can make informed choices without getting bogged down by excessive information and uncertainty.