Case Study

Ten principles for making better decisions

15 pages
November 2025
Reference: IMD-2677

This Technical Note presents a comprehensive framework of ten evidence-based principles for improving decision-making effectiveness in leadership contexts. Drawing from cognitive science, behavioral economics and management theory, it addresses the critical challenge that leaders face in making sound decisions under pressure and uncertainty.The ten principles cover: understanding and avoiding cognitive biases, recognizing the importance of decision framing, embracing probabilistic thinking, structuring information effectively, encouraging constructive disagreement, leveraging diverse perspectives, fostering inclusive decision making, implementing structured decision rules, balancing deliberation with speed, and intelligently integrating analytics. Each principle is supported by practical tools and techniques, from emotional regulation training to weighted decision matrices.The note emphasizes how cognitive biases become more pronounced under stress and pressurecommon conditions in leadership roles. It provides specific strategies for activating deliberate, analytical thinking System 2 over fast, intuitive responses System 1 when making important decisions. The framework integrates insights from leading researchers such as Daniel Kahneman, Annie Duke and Amy Edmondson.This comprehensive guide serves as both a theoretical foundation and practical toolkit for leaders seeking to improve their decision-making capabilities. It acknowledges the reality that leaders must often make decisions quickly while maintaining quality, providing frameworks that support both speed and accuracy in complex business environments.

Learning Objective
  • Recognize and mitigate cognitive biases that impair decision quality, especially under pressure.
  • Apply effective framing techniques to expand solution spaces and avoid binary thinking.
  • Implement probabilistic thinking to better manage uncertainty and risk assessment.
  • Structure information and leverage analytics to support more informed decision making.
  • Create inclusive processes that harness diverse perspectives and constructive disagreement.
Keywords
Decision Making, General Management, Leadership, Cognitive Bias, Psychological Pressure, Probabilistic Thinking, Inclusive Growth
Type
Generalized Experience
Copyright
© 2025
Available Languages
English
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