The Most Important Decision-Making Skills (With Examples)

Good decision-making skills are sought by almost all companies. Whether you’re applying for an entry-level position or an executive role, you should highlight your decision-making skills throughout the application process.

In this article, we will go over what decision-making skills are, how to improve your skills in this area, and how to highlight your ability to make good decisions.

Key Takeaways:

• You make decisions every day for various functions, from personal to professional, and consistently making good decisions can only help your career.

• There are three main ways to approach decision-making: using intuition, reasoning, or a combination of both.

• When making a decision you should identify the problem, do some research, and evaluate your options before you make a decision.

What are decision-making skills?

Decision-making skills are about your ability to choose a good option out of two or more alternatives. It takes a host of skills to be able to quickly and compassionately make wise choices that are good for both the present and the future.

There are three main categories of decision-making skills that correspond to three different ways to make decisions: using intuition, reasoning, or a combination of both.

• Intuition is your default response, or the gut feeling you get when presented with a problem or decision to make. This first reaction comes from a combination of things you’ve learned, experiences you’ve had, and opinions you hold, so everyone’s intuition is different.

  Using intuition means basing your decision on your lived experiences, so it can be subjective. Skills like creativity and emotional intelligence fall into this category.

• Reasoning, on the other hand, is rooted in data. You reason when you use the data available to you and only base a decision on facts and figures instead of your instinctive reaction. This is a more objective way to come to a decision and it’s usually how bigger decisions are made.

  Problem-solving and logical thinking are examples of decision-making skills in this category.

• Both. Most often, decisions are made with some combination of both intuition and reasoning. Using both is a good way to check and make sure your choice is logical while also paying attention to the human element of it.

  Since we make decisions all the time, we usually don’t stop to think about whether we should make an intuition-based or reason-based decision. Instead, we naturally use a combination of the two.

The most important decision-making skills

Many skills go into making effective decisions, from problem-solving to emotional intelligence. Here are some of the most important ones:

1. Problem-solving. The number one skill you need to be an effective decision-maker is problem-solving. Since decisions are just a type of problem (determining which option is the best), having strong problem-solving skills is definitely an asset.

   If you approach a decision from a logical mindset as if it were a problem to solve, odds are that the solutions you come up with and your final decision will be stronger.

   Problem-Solving Decision-Making Skills Examples

   • Choosing a reliable manufacturer to supply the product you sell.

   • Comparing candidates to the job requirements.

   • Reassigning tasks when an employee unexpectedly resigns.

2. Collaboration. Decisions can’t always be made by one person. You need to have good collaboration and compromise skills to make the best decision sometimes when it involves a group.

   Even when you’re making a decision on your own, getting extra input from friends or coworkers can help you brainstorm the best outcome. Collaboration is your friend, both when you need to make a group decision and when you’re the one responsible for making the decision.

   Collaboration Decision-Making Skills Examples

   • Brainstorming potential names for a new product.

   • Asking staff about the impact of extended hours.

   • Listening to employee needs and preferences for a new office space.

3. Emotional intelligence. Emotional intelligence, or EQ, is the ability to observe and understand your own emotions and the emotions of the people around you. Being able to take emotions into account will make you a stronger decision-maker.

   Think of this as related to intuitive decision-making. You need to balance facts, figures, and emotions to come to a good decision.

   Emotional Intelligence Decision-Making Skills Examples

   • Proposing the best way to boost sales.

   • Evaluating the impact of cutting spending.

   • Choosing an interim manager from an internal pool.

4. Logical reasoning. This skill is key for the middle steps of the decision-making process. Being able to fully evaluate and analyze your information, options, and decisions will make your decisions stronger.

   This skill is more closely related to reasoning, the side of decision-making that relies on facts and figures instead of on emotions.

   Logical Reasoning Decision-Making Skills Examples

   • Deciding how bonuses will be given for the year.

   • Choosing which employee or employees to lay off.

   • Creating an employee schedule based on time off requests and coverage needs.

5. Creativity. The more creative you are in your problem-solving, the better options and potential outcomes you’ll have to work with, as well as having creative ways to implement your decision.

   The most straightforward option isn’t always the best one, and sometimes you need to think outside the box to find a solution that meets everyone’s needs.

   Creativity Decision-Making Skills Examples

   • Arranging a small office space so that everyone can fit comfortably and be productive.

   • Finding ways to lower costs without sacrificing performance.

   • Developing a new record-keeping system that meets your team’s needs.

6. Organization. Being organized can help you keep all of your background information, options, and other tools in order.

   This allows you to stay clear-headed in your decision-making, reducing the risk that you’ll overlook a key piece of information. It can also help you feel less overwhelmed by the decision, which also results in better choices.

   Organization Decision-Making Skills Examples

   • Creating a centralized calendar where employees can update their schedule preferences.

   • Organizing data that will help you decide whether or not to continue a project.

   • Collecting employee feedback in survey form to make it simpler to see what the majority wants.

More decision-making skills

There are many more skills that will help you sharpen your ability to make good decisions. Take a look at this list and see what you’re already good at and where you could improve.

• Time management. Making decisions in a timely manner isn’t just about making a quick, hasty decision. Managing your time to properly work through the seven steps is a skill that will put you above everyone else.

• Leadership. When collaborating and making a group decision, someone needs to take charge and make sure the decision is implemented, which is when good leadership skills are needed.

• Ethics. Making ethical decisions is a necessary skill to have, so knowing how to weigh the ethical pros and cons is key.

• Research. The better research you can gather in the first steps of the decision-making process, the better prepared you’ll be to make a good decision.

• Analysis. Having strong analytical skills will help you ensure that your decisions are logical and reasonable.

• Flexibility. Quick-thinking and flexibility are your friends when it comes to making decisions since sometimes you’ll have to compromise or new constraints will pop up, changing how you approach a decision.

The decision-making process

Effective decision-makers use a seven-step process to tackle decisions. While it isn’t necessary to go through these exact steps when you make a basic decision, like what to cook for dinner, it can be a great way to check your thinking as you make a big work decision, like which strategy will lead to better sales.

1. Identify the problem. First, you need to see the decision that you need to make and understand what will go into making that decision. This step is crucial since everything else builds upon what you do here.

   Make sure you properly understand the situation, what’s being asked of you, and what tools you have available to you before moving to the next step.

2. Do some digging. For any decision you’ll need some background information to help you choose the right option. Sometimes this means just thinking back to details from meetings, or it can be doing more sophisticated research. You can use step one to help you identify what information you’ll need to make a good decision.

3. Think creatively. In this step you want to think of as many solutions as possible. It doesn’t matter if they’re good or bad, you just want to consider all of your options.

   Feel free to be as creative in your thinking as you want with this step. There are no bad options here since you want to think of every possible outcome. You’ll have a chance to check all of your brainstormed options later.

4. Evaluate your options. Here’s the part where you’ll give all your potential outcomes a second check. Go through the list of solutions you came up with in step three and test which ones feel better or sound more logical to you.

   Don’t forget to keep your end goal in mind when you consider all the choices. That way you’re sure to make a good decision.

5. Make the decision. It’s time to pick one of the options you came up with. Keep in mind that you can choose a solution you came up with or even combine solutions to make the best decision possible. Reflect on your process for step four and pick the decision you feel best about.

6. Act on your decision. Once you’ve decided what to do, you need to start taking the actions that will help you implement the decision. These can be big or small steps, but stay focused and resolved to get the job done.

   Don’t be afraid to bring other people into your process in this step. Especially for large workplace decisions, you might want to call on your coworkers to help you get things done.

7. Look back. When your decision is made and you’ve had some time to see its effects, take a second to evaluate that decision. Think about whether the decision had the outcome you wanted it to, or if it wasn’t so successful.

   Taking this time to reflect on your decision-making is a great way to not only improve your ability to make a good decision but also to learn more about yourself. You can even ask other people for their opinion on the effects of a decision to see how your perception of the impact lines up with others’ opinions.

How to improve your decision-making skills

To improve your decision-making skills, practice goal-setting, reducing your number of choices, and conducting good research. You should also work on your communication skills and give yourself a limit on how long you have to make a decisions.

• Set good goals. Having your eye on the big picture is enormously helpful when it comes to decision-making. Someone can make all the right decisions, but if their ultimate goal is wrongheaded, then those great decisions don’t add up to anything useful.

  Plus, keeping broader goals in mind helps simplify the decision-making process. It’s easier to know how to reach a destination if you have a clear idea of what that destination is.

• Reduce choice. Americans love options, but being inundated with too many potential choices can paralyze you. Before you begin making decisions, try to narrow down your possible choices to the top three.

• Research. Decision-making isn’t easy when you don’t have all the facts in front of you. Good decisions are predicated on good data, so start working to improve your research skills. The greater your knowledge and expertise, the simpler most decisions become.

• Communicate early and often. Communication skills complement decision-making skills well. Whether you’re seeking out advice or expressing a project’s goal, thorough communication helps you make decisions more effectively.

• Don’t analyze forever. The phrase “paralysis by analysis” is all too true. Don’t be afraid to make small decisions without 100% of the information you might need. A few minor failures can actually help generate better ideas. Start with the minimum viable solution, and iterate from there.

How to highlight your decision-making skills while job hunting

To highlight your decision-making skills in your job search, look for decision-making skills and terms in the job description, and incorporate any that apply to you into your resume and cover letter. You should also highlight them in your interview answers.

1. Check the job description. Read the job description carefully and look for words that indicate decision-making like:

   • Direct

   • Implement

   • Optimize

   • Spearhead

   • Analyze

   • Develop

2. Incorporate the decision-making skills from the job description into your resume. Look for ways to incorporate the same language from the job description into your resume.

   Let’s take a look at an example resume’s work experience section showcasing decision-making skills:

   Work Experience Decision-Making Examples

   • Saved product team over $50k annually in materials costs by analyzing low ROI spends and rerouting funds to lucrative projects

   • Reduced accounting labor hours by 21% by automating payroll systems and creating streamlined tracking spreadsheets

   • Optimized virtual meeting schedule, netting an average of 3 hours of meetings saved weekly, while improving employee productivity by 6%

3. Expound on your decision-making skills in your cover letter. A cover letter should cover similar accomplishments where you leveraged your top-notch decision-making skills. However, you can go into more detail about one or two accomplishments, rather than briefly touching on them as you would in a resume.

4. Highlight your decision-making skills in your interview. For a job interview, it’s equally important to know what metrics your performance will be judged on. By showing that you’re already thinking of how to achieve the most important results, you’re painting yourself as a candidate with great decision-making abilities.

Decisiveness Skills FAQs

1. What are the key skills for decision-making?

   Key skills for decision-making are problem-solving, logical reasoning, and emotional intelligence. These skills combine to help you navigate almost any decision. This is because you use your logic and EQ to consider your reasoning and intuition and come up with a balanced approach. Your problem-solving skills will also help you build confidence when you have to make a choice and stick with it.

2. How can I be a good decision maker?

   To be good at making decisions, match your decision based on your goals and values. This ensures that your decision is one that you can stand by, regardless of the outcome. However, sometimes this is hard to figure out.

   If you struggle to make decisions, make sure to manage your stress, consider all the outcomes, and weigh the pros and cons. Additionally, if you can, take some time to avoid making rash decisions. It also helps to talk to others or to write out your thoughts and feelings in the process.

3. What are the characteristics of a good decision?

   A good decision comes with clear reasoning, judgment of values, and is realistically accomplished. As long as your decision does not bring harm to others, you can use these characteristics to determine whether or not your decision was a good one. Your decisions should, in one way or another, bring you closer to your goals, both big and small.

4. What is strategic decision-making?

   Strategic decision-making is when you base short-term decisions on long-term goals. In a sense, your decisions are part of your “strategy” to achieve some end. Strategic decision-making is particularly useful for businesses when they need to align daily needs with long-term objectives.

5. How do you demonstrate strong decision-making skills?

   Demonstrate strong decision-making skills by providing examples of times you’ve used good decision-making skills. You can do this in your resume, cover letter, or during your interview.

References

1. Consumer Protection Financial Bureau – Financial Knowledge and Decision-Making Skills

2. Harvard Business School – 5 Key Decision-Making Techniques For Managers

3. UMass Dartmouth – Decision-Making Process

Author

Amanda Covaleski

Amanda is a writer with experience in various industries, including travel, real estate, and career advice. After taking on internships and entry-level jobs, she is familiar with the job search process and landing that crucial first job. Included in her experience is work at an employer/intern matching startup where she marketed an intern database to employers and supported college interns looking for work experience.