Understanding Why Decisiveness Is Important in Leadership

Understanding effective leadership is an art. Over the years, many studies and experiments have been conducted to analyse successful leadership traits and styles. While there are several critics regarding what proves the best, leaders and executives should cultivate some essential skills to be successful, purposeful leaders who achieve results.

In other words, regardless of the type or style of leadership chosen, some skills are a must-have for a successful leader. They form the right foundation for impactful leadership. One such skill is decisiveness.

It is seen as a fundamental leadership skill and trait that can make or break a leader’s effectiveness. This article will provide expert observations on why decisiveness is important in leadership and roles within various organizational contexts.

What Is Decisiveness?

Decisiveness is the ability to make clear-cut, confident, and timely decisions with just the right amount of information. It is a personality trait or characteristic that categorises people who can take action when required even though they have the risk of facing uncertainties.

This means that decisiveness is not necessarily linked to good decision-making quality. In other words, a decisive action will not always promise positive results. In fact, in some cases, decisiveness can do more harm than good, especially when the decision is wrong based on the available information at a given time. This involves being able to weigh the pros and cons of the data available and make a choice or being able to act spontaneously in a situation.

According to a study by McKinsey & Company, a staggering 89% of business performance can be attributed to the quality of decisions leaders make. This is one of the primary reasons why decisiveness is seen as an essential skill to perform in a fast-paced environment.

Here is a more detailed breakdown of why decisiveness is important in leadership.

Enhances Efficiency

In business time is money, and decisiveness is all about making efficient decision making. Decisiveness allows leaders to seize opportunities and stay ahead of competitors by addressing potential risks before they escalate into serious threats.

Especially in this dynamic business environment, the ability to swiftly respond to market demands through efficient responses is what distinguishes a thriving company from one that fails.

It ensures that an organisation keeps up with market changes and evolves to meet the positive changes that can boost its growth and competitiveness.

Boosts Confidence Among Stakeholders

The ability to take charge of decision-making within a short period of time signals to all stakeholders that the leader is in charge of the organisation’s direction. It instills confidence among stakeholders, including investors, employees, and customers, making it more likely for them to invest in, work for, or purchase from the company.

When stakeholders observe their leaders making prompt decisions while taking the risk of uncertainty and accountability, it solidifies their trust in the company, leading to increased loyalty and a stronger, more cooperative relationship with the organisation.

In other words, one of the key reasons why decidedness is important in leadership is to steer stakeholder relationships positively.

Offers Clear Direction to The Team

When there is a leader who can make decisions amidst unforeseen events, it provides a clear direction for the team to follow. It ensures all the employees are on the same page in solving a problem and reduces room for errors or misunderstandings.

This clarity goes a long way toward ensuring that team members understand their roles and responsibilities, resulting in overall productivity and a clear vision of organizational goals.

Reduces Ambiguity

When leaders are indecisive, there is increased room for confusion and uncertainty. In turn, this leads to inefficiencies, errors, and misinterpretations, adding more confusion to an already challenging environment.

In contrast, when a leader steps in and takes timely decisions confidently, it allows everyone to stay focused on a single goal, reducing room for assumptions or the exchange of misinformation.

Fosters Innovation

One of the most noteworthy reasons why decisiveness is important in leadership is because of the ability to take calculated risks. This goes without saying that decisive leaders can make bold decisions in the most crucial time, helping to quickly embrace changes that benefit the company.

This goes a long way in establishing a culture of innovation, where new ideas are encouraged, explored, and made use of to stay ahead of the competitive market dynamics. It strengthens the brand and gives the many benefits of first-mover advantage if a decision works in favor of the organisational goals.

Real-Life Examples of Decisive Companies

Famous companies like Apple and Amazon have thrived primarily because of decisiveness in their leadership approaches.

Apple, under Steve Jobs was renowned for making spontaneous, bold, and swift decisions that worked in favor of new market standards.

Likewise, the decision Amazon made to expand into cloud computing was a strategic decision made under Jeff Bezos’s decisive leadership skills.

One important lesson to takeaway from these events is to understand that these decision-making processes were not without its risks. However, by acting decisively, taking a quick decision while holding full accountability of the decision made is what allowed these companies to secure substantial leads over competitors and achieve remarkable growth.

Mastering The Art Of Decisiveness

We all have heard of the saying “leaders are born, and not made”. While it is true that some people are more natural leaders as they have characteristics originated by birth, nowadays people have many different ways to develop their leadership skills by learning from first-hand knowledge, and even observing.

The same perspective can be taken for decisiveness. Unlike many would believe, decisiveness or more often a learned skill. It is cultivated by reading and applying knowledge in professional situations or through training and workshops at a workplace.

Besides this another effective and effortless way to acquire this skill is by working with a skilled career or executive coach. Through this programme you will be able to get personalised plans on how to fill the gap between your current skills, traits, and personality as a leader and those that you need to be more decisive in your role.

All in all, the reason why decisiveness is important in leadership can be summed up with this saying,

“In any moment of decision, the best thing you can do is the right thing. The worst thing you can do is nothing.” Theodore Roosevelt