Decision-Making – The Soft Skill Made of Steel

Word Count: 1,475 Estimated Read Time: 6 Min.

Not every job requires a person to make decisions.  Depending on the role and the company, some positions may be more focused on following instructions and procedures.  But other jobs require staff to make judgment calls and choices throughout the day. 

In fact, in an increasingly complex world, most jobs or professions now require the employee to make decisions… not just once but multiple times every day.  Even seemingly simple jobs like bagging groceries or cashiering might involve making small decisions about how to best perform a task, address customer requests, or handle specific situations.  And positions with management or leadership responsibilities heavily involve decision-making, ranging from tactical choices to strategic planning. Positions in fields like law, medicine, engineering, construction, real estate and business require individuals to make critical — potentially life-and-death decisions — based on available information and analysis.  So this really is an incredible important soft skill… one that often requires a fortitude made of steel.

Nothing Soft About the Decision-Making Soft Skill

When done right, decision-making should involve a host of sub-skills.  To make solid, smart decisions, a person should:

• research the issue
• compile the relevant information
• analyze that information and identify critical factors that will affect the outcome
• weigh the information to identify options and alternatives and then establish priorities
• anticipate possible outcomes and logical consequences
• weigh risks and uncertainty of the options available
• decide in a timely manner by taking action
• and then review the decision and its consequences

But people in important, high-level and leadership positions make decisions all day, every day.  To go through the above-detailed, rigorous process for every decision might seem preposterous.  So many decisions are made on the fly, with limited time to gather info, even less time to weigh all the information carefully and anticipate all the possible outcomes. They often have to factor in unplanned situations and unexpected opportunities in a snap.

Leveraging the Unplanned and the Unexpected in Decision-Making

Case in point.  Bill Gates’ decision to license his operating system to IBM instead of selling it is seen as brilliant decision-making.  The story goes that initially IBM approached Bill Gates and Microsoft in 1980 seeking an operating system for their upcoming personal computer.  At that point, Gates wasn’t convinced that Microsoft should be in the operating system business and even suggested they talk to Gary Kildall at Digital Research who had a more established operating system called CP/M. IBM went to Kildall, but their negotiations reportedly didn’t go well.

IBM then went back to Microsoft again asking for an operating system. The truth was that, at that point, Microsoft didn’t even have a readily available operating system. But Gates and his team had learned of 86-DOS, a/k/a QDOS, developed by Seattle Computer Products.  Realizing that they had a ready customer in IBM, Microsoft quickly negotiated and acquired the rights to 86-DOS and hired its developer, Tim Paterson, to adapt it for the IBM PC.  They renamed it MS-DOS. 

But, crucially, Microsoft licensed — not sold — MS-DOS to IBM, which they branded PC-DOS.  The licensing agreement allowed Microsoft to retain ownership of the software and license it to other computer manufacturers, setting the stage for Microsoft’s dominance in the PC operating system market. This put Microsoft software at the forefront of the industry.  Microsoft’s deal with IBM was a calculated move that leveraged an unexpected opportunity — IBM’s failed negotiation with Kildall — and a shrewd business strategy to license, not sell, the software in order to achieve market dominance. 

Decision-Making Gone Wrong

That’s an example of great decision-making.  And, given the pace of change today, decisions often must be made on the fly within an ever-evolving landscape.  They are made in a snap, with little more than a few hours or days to weigh all the risks and consider all the options. Despite that, sometimes it results in huge success. But other times it results in bad decisions or no decision at all.

Decision-Making Gone Very Bad

Case in point.  A prime example of how a bad snap decision can kill a company is Blockbuster’s failure to acquire Netflix in 2000.  That was spectacularly bad decision-making.  Blockbuster was a massive video rental chain.  It was approached by fledgling Netflix to buy their subscription-based video rental model for $50 Million. At that time, Blockbuster was deeply invested in its brick-and-mortar stores and traditional rental model and was struggling to adapt to the rise of streaming services and online rentals. Netflix’s subscription-based model offered unlimited rentals for a flat fee, a significant departure from Blockbuster’s late fees and per-rental charges. Blockbuster knew that they made most of their money on late fees and had zero interest in killing the goose that was laying golden eggs.  What Blockbuster failed to realize – even though the writing was on the wall — was that the goose laying the golden eggs was dying.  Video streaming was already under development, and it would only be a matter of time before video rentals would become a thing of the past. 

The decision to pass on acquiring Netflix was made in a snap, in real time, during their meeting.  Blockbuster’s leadership all but laughed Marc Randolph and Reed Hastings out of their offices.  At that time, Blockbuster had a market capitalization of about $8.4 Billion while Netflix, as an unprofitable startup, had a much lower valuation than the $50 Million they were seeking. 

Blockbuster’s inability to adapt to changing consumer preferences and Netflix’s innovative business model ultimately led to Blockbuster’s bankruptcy in 2010. Netflix, on the other hand, flourished, eventually becoming a global streaming giant and a major force in the entertainment industry valued today at $479 Billion…. 60x Blockbuster’s market capitalization at its peak. 

In essence, Blockbuster’s snap decision to reject Netflix — driven by arrogance and an utter failure to recognize the potential of a new business model — highlights how crucial good decision-making can be.

Decision-Making Delayed

The fact that one really bad decision can kill a company is one reason why some will opt to make no decision instead of making a bad decision. And there are other reasons why decision-making is delayed.  Here are a few:

• Fear of failure – The potential for negative consequences or regret can make it difficult to make a choice, especially when the decision has significant implications. 
• Overthinking – Dwelling on potential outcomes can lead to anxiety and make it hard to make a decision. 
• Neuroticism – Individuals with higher levels of neuroticism tend to overthink and worry about potential negative outcomes, making them more likely to avoid decision-making. 
• Information Overload – An abundance of choices can lead to analysis paralysis, making it difficult to choose the best option. 
• Decision Fatigue – Making too many decisions in a short period can drain cognitive resources, leading to fatigue and impaired judgment. 
• Cognitive Biases – Prone to biases that can distort our judgment and make it harder to make rational decisions can cause some to press pause when making decisions.
• Insufficient information – Lack of info can make it just as difficult to evaluate options and make a well-informed decision as having too much info. 
• Strong emotions – Fear, anger, or sadness can cloud judgment and lead to impulsive or irrational decisions. 
• Low self-esteem and self-doubt – Lack of confidence can make it difficult to trust one’s judgment and make decisions independently. 
• Perfection Problem – The desire to make the “perfect” decision can lead to procrastination and overthinking, as it can be difficult to settle on any option that doesn’t meet unrealistic standards. 
• Burnout – Being mentally and emotionally exhausted can impair cognitive function and make it harder to make decisions. 
• Stress – Stressful situations can narrow our focus and make it difficult to consider all available options.
• Distraction – Being distracted by other thoughts or activities can hinder the decision-making process.
• Indecisiveness – Some individuals are naturally indecisive due to a combination of psychological and personality factors. 
• Lack of accountability – When individuals are not held accountable for their decisions, they may be less motivated to make good choices. 

But not making a decision is, in a way, a decision.  Decision avoidance is not a solution.  In fact, it can even make things worse.  As Dr. Gordon Graham, Emeritus Professor of Philosophy and the Arts at Princeton, put it, “Decision is a sharp knife that cuts clean and straight; indecision, a dull one that hacks and tears and leaves ragged edges behind it.”  Most important choices have a timeline. If we delay a decision, an opportunity might be gone forever.  So decision avoidance can be worse than making a decision. 

So how does one become a better decision-maker?  According to author and sociologist Malcolm Gladwell, “Truly successful decision-making relies on a balance between deliberate and instinctive thinking.”Stay tuned next week as we take a closer look at deliberate vs. instinctive thinking in decision-making. 

Quote of the Week
“Visionary decision-making happens at the intersection of intuition and logic.”
Paul O’Brien 

© 2025, Keren Peters-Atkinson. All rights reserved.