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Avoiding A Decision… Is A Decision With Consequences
Avoiding decisions as a leader is a choice with significant consequences, impacting company culture, performance, and reputation. By considering the Cost of Inaction (COI) and proactively addressing issues, leaders can enhance their effectiveness and drive positive outcomes.
05 Jul 2024
By Chief Maker Executive Development Academy
Decision-making is one of the most important skills you can master as a leader. It fundamentally shapes company culture, results and the legacy you leave.
But it’s easy to forget that when you don’t make a decision, it is in fact, a decision.
Decisions are made at work all the time. Implementing new software, pitching for a new client, giving a pay rise to employees. As well-taught leaders, you base these decisions on data. What will the ROI be? What’s the Return on Investment?
But how often do you consider the COI… the Cost of Inaction?
If I don’t make this decision, what will happen?
By deliberately, or more commonly inadvertently, choosing inaction, you’re sending a message to your people that you’re endorsing the status quo.
For example, perhaps there’s a toxic personality within your team and rather than acting on it, you’re choosing to ‘wait it out’, hoping it will resolve itself.
Avoidance of a decision normally stems from an internal fear of getting it wrong or just not knowing how to handle the situation. All totally understandable. But the hard truth is, your inaction is endorsing this person’s behaviour.
LET’S CONSIDER THE COI FOR THIS EXAMPLE...
Performance suffers - the team won’t be delivering the results it could be because the toxic person isn’t pulling their weight and this is likely distracting others from their critical work.
Company culture is driven down - by not addressing the issue you’re endorsing this person’s behaviour as the accepted standard in the team. Which means others will follow suit and an unhappy culture builds. Then, turnover of good people ensues.
Your reputation is damaged - your team and the leaders above you can see your inaction and they make all sorts of assumptions about your capabilities that probably aren’t very good for your leadership brand.
Remember, all great chiefs own ALL their decisions. The more practice you have in owning and making proactive decisions, the better you’ll become over time and the better leader you’ll be.
So, what's on your plate right now that you’re either delaying or not making a decision about? Here are some guidelines to help you choose action rather than inaction:
1. What is the worst that can happen? Can you minimise this? (think commercially, operationally and culturally)
2. What is the best that can happen? Can you increase the chance of this? (think commercially, operationally and culturally)
3. How should you communicate this decision? Is there anyone you should warn?
4. Are there any final pieces of data or information you need before making the decision?
Finally, ask yourself this…
If I make this decision with positivity and purposeful intent, what can be achieved?
Decisions should be about improving the business and the lives of the people in it.
Boldly leading your team has never been more important. Make decisions, never avoid them.
ADDITIONAL RESOURCES
The Inner Chief Podcast, Ep. 289
Simon Mainwaring, Founder & CEO, We First
Drawing his client’s attention to what will happen if they don’t take action
The Inner Chief Podcast, Ep. 323
Nuala Walsh, Founder & CEO, MindEquity
The art of decision making like a ninja
The Inner Chief Podcast, Ep. 18
Greg Layton, Founder & Executive Coach, Chief Maker
Kung fu the most difficult situations
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Chief Maker Executive Development Academy
Chief Maker is a global professional development company specialising in leadership and executive excellence. Trusted to create high-performance teams and inspiring leaders, their flagship MiniMBA equips leaders with the toolkit to navigate change, drive growth, and inspire excellence.
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