How to Make Perfect Decisions When Everything’s on Fire: Beating Biases and Framing Crises Right

In the heat of a crisis, decisions must be swift yet sound. How leaders frame the crisis shapes their choices profoundly. Viewing a crisis solely as a threat triggers defensive, risk-averse responses. Conversely, framing it as an opportunity invites innovation and bold action.

Consider the CEO of a major restaurant brand who reimagined their business model amid the pandemic, betting heavily on pickup and delivery services that surged 200%. This balanced framing enabled both protection and exploration.

Leaders can adopt four frames for decision-making: design (structural adaptation), political (managing conflicts and alliances), human resource (people and capabilities), and cultural (values and identity). Integrating these frames provides a holistic view and informs balanced decisions.

However, cognitive biases like the anchoring effect cause leaders to cling to initial impressions despite evolving evidence. Probability neglect blinds them to real risks, while sunk-cost fallacy traps them in failing strategies. Awareness and seeking diverse perspectives are antidotes.

Broadening the lens through open dialogue and inclusive decision-making shines light on hidden risks and opportunities, enabling leaders to navigate complexity with clarity.

Mastering decision-making under pressure is a cornerstone of Prepared Leadership, setting the stage for effective team building and crisis navigation, topics we will explore next.