A leader's impact on an individual's decisions.

Decisions involve uncertainties. When we think about having a decision to make, it is because we are facing uncertainties and we have options to choose from.

Uncertainty signals personal vulnerability and could be a threat to our current familiar and safe environment. In life, change is the only constant, and when we confront change our confidence and peacefulness are swiftly replaced with anxiety, apprehension and even a degree of fear.

During the decision-making process, we rely on habitual behavior to make quick judgments or we look to the outside world for cues on how to think and act. We sometimes ask those around us for advice and we allow their responses to influence us.

When we face any decision, there is usually a specific outcome which we care about, so during the decision-making process, we apply mental frameworks to evaluate the various possible options and the expected outcomes. We innately implement a ‘probability theory’ and several different cognitive biases play a role. We try our best to determine which decision would most likely lead to the desired outcome.

After we have made a critical decision we try to rationalize it because we want peace of mind that the chosen option would yield the expected outcome. We look for signs that affirm we have made the appropriate decision. This is referred to as the confirmation bias.

There are times when we take all the right steps, and we apply all the appropriate decision-making patterns and practices, and we remain dissatisfied with the available options and we either choose the best from a range of poor options or we procrastinate, slow roll the decision-making progress or even concede and make no decision.

In some cases, we perceive someone else’s decision as inexplicable and a seemingly wrong choice and as an outsider, it simply makes no sense.

When this happens, we are perplexed and question, why the well documented and practiced decision-making principles, seem to fail or we want to better understand the individual’s thinking.

I believe one factor that contributes to either great or poor decision making by individuals is the role a leader or mentor plays before- and during the decision-making process.

The way that the leader defines and present the problem shapes the solution that someone selects.

In the workplace, managers very often assume their duty is to simply present the employee with an issue (or opportunity) and explain a few choices and then step back, thereby transferring the full responsibility of the decision to the employee.

Actually, the leader has a profound impact and should play a very important role before and during the decision-making process.

The way that a leader frames the problem develops the range of options and alternatives. How we frame a problem often shapes the solution at which someone arrives.

A Seemingly simple challenge or opportunity can easily be distorted or even turn into a very vague and complex matter which leaves the employee confused, overwhelmed, and fearful.

Without proper framing prior to the decision-making process and without appropriate support during the decision-making process, the employee will rely on habits, past experiences, and cues from those around him. The environment and body language of those around him/her have a direct influence. Individuals make assumptions and sometimes allow their imagination to run wild - all in an attempt to decipher the situation and envision the possible outcomes.

There is a relationship between how we frame problems and the level of risk we take. Risk taking is dangerous and most of us avoid it at all costs. Even small changes in wording have a substantial effect on our propensity to take risks.

If we frame a potential situation in terms of a potential gain, we act differently than when we frame a situation in terms of a potential loss.

Language matters. How we define the problem dictates the choices that we make.

Small changes in wording matter a great deal.

In 2002 Daniel Kahneman won the Nobel Memorial Prize in Economics for his work in developing the Prospect Theory.

The Prospect Theory transformed the believe we had for decades in that the Probability Theory was the most suitable and surest way to determine an outcome (expected value). We, therefore, trusted the probability theory as one of the only means to guide us in making the best possible choice.

The Prospect Theory shifts the decision-making responsibility and suggests the leader takes a degree of responsibility for the decision.

All of us as leaders have the responsibility to understand and practice the principles that would lead subordinates in making great decisions.

An X-type manager will simply present his subordinate with a problem and expect a response, but a true leader who deeply cares will focus on framing the problem in a clear, positive, candid, honest and unequivocal way and he remains involved during the decision-making process to ensure any possible questions, uncertainties, misinterpretations, and assumptions are discussed and clarified in a safe, comfortable and reassuring manner.

This does not mean we should deceive or mislead anyone by fabricating an optimistic and unrealistic outcome, but it means we must take responsibility and pay careful attention to the ways in which we lead others through difficult decisions.