Decision-making under pressure: how leaders navigate uncertainty
It’s late Friday afternoon. Your biggest client has just called with an urgent problem. Your team is looking to you for a decision—fast. Do you hold firm, pivot, or risk waiting for more information?
Your key supplier has just informed you that a critical shipment will be delayed by two weeks, jeopardising your product launch. Do you scramble for an alternative, renegotiate timelines, or adjust expectations?
A senior team member has unexpectedly resigned, leaving a leadership gap just as you’re entering a crucial quarter. Do you promote internally, bring in a temporary replacement, or take on their responsibilities yourself?
How do you decide?
Decision-making under pressure isn’t just about speed; it’s about clarity, confidence, and knowing when to act.
Many leaders either overthink (getting stuck in paralysis by analysis) or react impulsively (making rash decisions they later regret).
The best leaders develop tools to navigate high-stakes moments with composure and effectiveness.
When stress levels rise, our brains default to survival instincts: fight, flight, or freeze. This often results in:
Leaders must recognise these patterns and develop structured approaches to making decisions when the pressure is on.
Let’s explore how to decide well, each and every time.
A simple but powerful decision-making process is the OODA loop, originally developed by military strategist John Boyd.
The four steps—Observe, Orient, Decide, Act—help leaders maintain clarity in high-stakes situations:
By using the OODA loop, leaders can avoid knee-jerk reactions and ensure their responses are well-calibrated to the situation.
Let's consider an example of how this might play out:
In a manufacturing company, a critical assembly line machine breaks down unexpectedly, halting production. Within minutes, the factory floor is in chaos—workers are standing idle, supervisors are scrambling for answers, and production deadlines are under threat.
Sarah, the Operations Director, takes a deep breath and kicks into action. She quickly gathers the key supervisors to get a clear understanding of the problem (Observe). Within minutes, she has a picture of the damage and its potential impact on customer orders.
She pulls up contingency plans and evaluates which products can be rerouted to a secondary production line (Orient).
Based on the time needed for repairs, she decides to shift high-priority orders to the backup line while bringing in specialist technicians for immediate repairs (Decide).
She communicates the plan clearly, reallocates the workforce, and monitors the situation closely, ready to adjust as new information comes in (Act).
As the repairs progress, Sarah continuously cycles through the OODA loop, refining the response in real time. Her composure and structured approach keep the team focused and the business moving.
Beyond the OODA loop, several mental models help sharpen decision-making under pressure:
These models help leaders make decisions that are not only fast but also well-structured and strategically sound, ensuring they act with confidence and clarity under pressure.
The more decisions you make in a day, the worse your judgment gets. Every choice—big or small—drains cognitive energy, leading to poorer decisions later on.
High-profile leaders like Steve Jobs and Barack Obama understood this and simplified their lives by wearing the same outfit daily—Jobs in his black turtleneck and jeans, Obama in his navy or grey suits. By eliminating trivial choices, they preserved their mental energy for higher-stakes decisions.
While this extreme approach to their wardrobe won’t appeal to most, leaders can apply this principle by streamlining routines, automating low-value decisions, and focusing their cognitive resources where they matter most.
To prevent decision fatigue:
Making decisions isn’t about having perfect answers—it’s about making the best call possible with the information available, as in the 40-70 rule.
The reality is, leaders rarely have the luxury of complete certainty. Delaying decisions in search of perfect clarity can cause missed opportunities, while making snap decisions without enough context can lead to costly mistakes. The balance lies in using available data, experience, and judgment to take decisive action, even when the path ahead isn’t entirely clear.
A leader who exudes confidence, even in uncertainty, fosters trust within their team. When a leader appears calm and resolute, their team is more likely to stay focused and engaged, rather than becoming paralysed by doubt.
Confidence doesn’t mean pretending to have all the answers—it means demonstrating that you have a process for figuring things out and navigating challenges effectively.
As performance psychologist Jamil Qureshi puts it:
“Decision making is not about understanding the choices and being able to predict success. Instead it is about being able to trust ourselves to navigate our way to a successful outcome.”
The key is:
Ultimately, confident leadership isn’t about always being right—it’s about leading with clarity, decisiveness, and a steady hand in the face of uncertainty. When teams trust that their leader has a plan and is willing to adapt as needed, they are far more likely to stay engaged, proactive, and focused on achieving the best possible outcome.
The best leaders don’t wait for a crisis to practice decision-making under stress. They rehearse high-pressure scenarios before they happen.
A leader’s ability to make smart, composed decisions under pressure isn’t an innate talent—it’s a skill that can be trained and refined.
What’s one high-stakes decision you’re facing right now?
How can you use these frameworks to approach it with more confidence?
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