What Is a Decision, Exactly?

Why Do Decisions Matter?

You are your decisions.

Every choice you make creates your future. Regardless of how or what you decide, you will have to live with the consequences.

Some choices can have a profound impact. It only takes a second to cross a busy road without looking. It only takes another second for the driver to take more notice of the car behind than you. It only takes a second for the car to hit you, causing serious injury.

Sometimes events far beyond our considerations, the so called 'black swan' occur.

Often, the impact of a decision isn’t so sudden, but more drawn out. Take continuous late nights, combined with early starts, and the impact it has on you. Your energy levels are low. Your concentration levels are short and lack quality.

It could result in missing out on a promotion or worse.

These simple decisions aren’t often thought about, but they can make a big difference in your life. Quite simply, they can change the direction of your life in a moment.

This all sounds rather negative, and it shouldn’t, because there are big upsides too. As much as a decision can go against you, it can go for you.

In truth, you’ll get more decisions right than you’ll get wrong. Most of them you won’t even know about. But some will impact your life—and that of others—more than you could ever grasp.

Life will give you choices. Being ready to make those decisions when they arrive is the key to getting ahead.

Types of Decisions

The way you decide falls into two distinct camps:

Quick vs. Deliberate:

• Instant Judgments (System 1 thinking)
• Careful Consideration (System 2 thinking)

Instant decision-making (intuitive or impulsive) is known as System 1 thinking.

System 1 Thinking

Quick, or instant decisions, are subconscious, so you are often unaware you’re making them.

Your intuitive choices follow the same foundations of choice as System 2 thinking, but are driven by a multitude of inherent elements. These include:

• Survival instinct
• Intuition/gut feeling
• Emotional drives
• Habit/learned response
• Curiosity
• Optimism
• Courage
• Grit/perseverance
• Self-belief

(The last five also appear as traits found when we adopt System 2 thinking.)

These traits are determined by your genes. All those ancestors who contributed to your DNA also set the foundations for the way you decide. Your System 1 thinking is guided by a history far beyond your parents, grandparents, and even their grandparents.

Your System 1 thinking is responsible for the vast majority of the decisions you make. When you eat, sleep, breathe, display emotion, and so on, it’s often a result of System 1 thinking.

System 2 Thinking

System 2 thinking is where you make conscious decisions.

These decisions demand careful consideration, which brings them beyond the scope of System 1 thinking. Note, this does not stop System 1 from deciding if it thinks it can.

Why? Part of the way you think and decide comes from pattern recognition. When your mind sees a decision it has made before, it will assume it can make the same decision again. This is extremely helpful when you’re hungry, but less so when assessing a candidate for a new position.

System 2 thinking is slower, more reflective, and considerate of the three aspects of a decision (mentioned earlier).

The traits it adopts make it clearer how we do this:

• Curiosity — deliberate information seeking
• Optimism — reasoned optimism based on evidence
• Courage — considered, calculated risks
• Grit/perseverance — conscious commitment to long-term goals
• Self-belief — evaluated belief in capability
• Rational analysis — logical, step-by-step reasoning
• Self-control — overriding impulses, deliberate restraint
• Critical thinking — evaluating evidence, weighing pros and cons
• Pause and reflection — slowing down, reassessing before acting

System 2 thinking gives you a chance to escape some of the traps System 1 thinking falls into.

Today, your most important decisions are far more complex than the ones our ancestors faced. So the biases once used to improve life-or-death decisions aren’t as applicable today.

That’s why cognitive biases are known as systematic errors. They don’t work in today’s world.

In summary:

System 1 guides decisions through instinct, emotion, intuition, and learned habits.

System 2 applies logic, analysis, self-control, and reflective thinking.

How to Make Better Decisions: The Practical Guide

Every day, you’re faced with choices—big and small. But how do you make sure you’re making the best decision possible? The answer lies in understanding & being aware which part of your mind is at work: your quick, intuitive self, or your thoughtful, analytical side.

Recognising Which System Is at Work

System 1 Thinking: The Fast Track

• When it’s in charge: You’re making snap judgments, relying on gut feelings, or responding automatically.
• How to spot it: You feel certain, act quickly, and might not even realise you’re making a choice. This often happens under pressure, when you’re tired, or when a situation feels familiar.
• Red flags for leaders: You’re making decisions based on what “feels right” or what’s “always worked,” especially when time is short.

System 2 Thinking: The Reflective Route

• When it’s in charge: You’re pausing to think, gathering information, or weighing options carefully.
• How to spot it: You feel mentally engaged, maybe even a bit tired, because you’re analysing, questioning, or challenging your first instinct.
• Signs for business professionals: You’re facing a new problem, seeking evidence, or using tools like decision matrices or checklists to guide your choice.

Matching the System to the Situation

Not every decision needs deep analysis, and not every choice should be made on instinct. The trick is knowing when to slow down and when to trust your gut.

• Use System 1 for: Routine tasks, familiar situations, or when the stakes are low.
• Use System 2 for: New challenges, high-stakes decisions, or when you suspect bias or uncertainty might be at play.

Tips for Better Decision-Making

Here are some practical ways to make better choices every day:

• Pause and ask yourself: “Am I relying on instinct or evidence right now?”
• Check for bias: If a decision feels too easy, take a moment to question your thinking.
• Deliberate when it counts: For important decisions—like hiring, investments, or strategic moves—engage System 2 by gathering information and consulting others.
• Use simple frameworks: Tools like pros and cons lists, decision matrices, or structured debates can help you think more clearly.
• Set a deadline: Sometimes, the best way to overcome indecision is to give yourself a time limit and stick to it.

Putting It All Together

Remember, the goal isn’t to eliminate quick decisions or overthink every choice. It’s to recognise which system is best suited for the situation at hand, and to use the right tools and mindset to make the best possible call.

When you understand how your mind works, you make better decisions, avoid costly mistakes, and lead with confidence, no matter the challenge.

Overcoming Indecision

Indecision is a natural challenge in the decision-making process, particularly when information is incomplete, outcomes are unclear, or the best course of action seems uncertain. For leaders and professionals, hesitation often signals that a closer look at the decision process is needed.

Why Indecision Happens

Indecision can stem from a number of factors. Sometimes, it arises from the instinct to avoid risk (System 1), which causes us to freeze when the stakes feel high. Other times, it comes from an urge to over-analyse every detail (System 2), leading to endless deliberation in search of a perfect answer.

Another common contributor is decision fatigue. The more choices we face throughout the day, big or small, the more our mental energy is depleted. As fatigue sets in, we are more likely to procrastinate, default to familiar options, or avoid making decisions altogether. This is especially noticeable in leadership roles, where the volume and complexity of decisions can gradually erode clarity and confidence.

How to Move Forward

1. Recognise Decision Fatigue

Be mindful of moments when you feel mentally drained or overwhelmed by choices. This is a sign to pause, simplify, or delegate less critical decisions to preserve your energy for what matters most.

2. Assess Reversibility

Ask yourself: Is this a decision that can be reversed if the outcome is not as expected? If so, give yourself permission to act, knowing you can adjust your approach later. If the decision is permanent, take the time you need, but avoid letting the pursuit of certainty keep you from moving forward.

3. Set a Reasonable Threshold

Waiting for perfect information is rarely practical. Instead, aim to make decisions when you have enough information to feel confident, not when you know everything.

4. Streamline and Structure Your Process

Reduce the cognitive load by using checklists, routines, or a decision journal. These tools help you externalise your thinking, minimise impulsive choices, and spot patterns that lead to better outcomes over time.

5. Align with Your Values

When you are stuck, clarify what matters most. Your values and strategic objectives (the rules of the game)can serve as a guide for evaluating options and making trade-offs with confidence.

Practical Tips for Leaders

• Batch or automate routine decisions: Free up mental space for strategic choices by establishing habits or delegating lower-stakes decisions.
• Set a deadline: Give yourself a time limit to gather information and decide.
• Consult trusted colleagues: Sometimes, a fresh perspective is all you need.
• Decide, review, and adapt: Make your choice, then monitor results and adjust as needed.

Indecision is a signal, not a stop sign. By recognising decision fatigue and applying these principles, you can break through hesitation and move forward with clarity, one decision at a time.

Conclusion: The Power of Better Decisions

Every decision shapes your future and the future of your organisation. Some choices are quick and instinctive, while others demand careful thought and analysis. Both matter.

Great decision-making is not about being perfect. It is about using a clear process—gathering information, weighing your options, and considering possible outcomes before you act. Sometimes, the best choice is to move forward even when you do not have all the answers. Other times, it pays to pause and reflect.

You will not get every decision right, and that is normal. What matters is learning from each experience and improving your process over time. By understanding how you make decisions, recognising your habits, and applying practical frameworks, you will build confidence and reduce mistakes.

Trust your process and your principles. Use the tools and strategies you have learned here. With practice, you will make better decisions, lead with clarity, and help your organisation grow.

Each decision is an opportunity. Make it count.

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