How to Make Tough Decisions as a Leader: 7 Strategies and Best Practices

In this post, we explore a topic that most leaders are familiar with: making tough decisions. We share examples of tough decisions that leaders commonly face, as well as strategies and best practices to guide you through the decision-making process. 

As a leader, you’re making decisions constantly. Some are split-second, low-stakes decisions that you barely think about. Others you consider in more detail, weighing up the data and different possible outcomes before deciding on the best course of action. 

Then there are the really tough decisions — those that have no obvious solution or clear-cut answer, requiring you to make uncomfortable choices and, often, to be the bearer of bad news.  

Making tough decisions is undoubtedly one of the most difficult aspects of being a leader. Unfortunately, there is no magical formula you can follow — but there are certain strategies and best practices that can guide you through the process. 

Are you ready to tackle tough decisions head-on? We’ll show you how in this guide.

Table of Contents

• What are the characteristics of a tough decision?
• Examples of tough decisions that leaders commonly face
• How do great leaders make tough decisions and why does it matter?
• How to make tough decisions as a leader: 7 strategies and best practices
  • 1. Consider a variety of different perspectives
  • 2. Identify different possible outcomes and their pros and cons
  • 3. Set yourself a deadline
  • 4. Trust your own judgment (and resist the urge to “people-please”)
  • 5. Communicate your decision clearly and with empathy
  • 6. Explain the reasoning behind your decision
  • 7. Outline clear next steps 
• Making tough decisions: the takeaway

What are the characteristics of a tough decision?

Tough decisions are those that, despite your best efforts to analyze the facts and reach an objective conclusion, still leave you scratching your head. When it comes to making tough decisions, data alone won’t help you. Ultimately, it’s down to you to make the call based on your own judgment. 

Often, tough decisions in the workplace are especially tricky because they affect other people. As a leader, it can be extremely difficult to make a decision when you know that it may negatively impact your team members or coworkers in some way.

If the stakes are high and there’s no objectively clear answer in sight, you’ve got a tough decision on your hands.

Examples of tough decisions that leaders commonly face

Some examples of tough decisions faced by leaders in the workplace include:

• Who should be promoted?
• Should an underperforming employee pass their probation?
• Should you speak to your own manager about an underperforming employee on your team?
• In the process of restructuring, which team members should you keep and who should you let go?
• Which roles should you prioritize hiring for when you have a limited budget?
• Who should receive a salary increase when you have a limited budget?
• What cost-cutting measures will you introduce when finances are tight?
• Should you allow for flexible working arrangements?
• Who will you send to a particular conference or training program if you can’t send everyone? 
• What do you do if you suspect an employee is experiencing burnout? 
• How do you manage conflict between two of your team members?
• What do you do when you’re under pressure to deliver but want to protect your employees’ well-being?
• What new tools and technology should you invest in for your team?

All of these scenarios are nuanced and complex. So how do great leaders handle such tough decisions? Let’s take a look in the next section. 

How do great leaders make tough decisions and why does it matter?

How you navigate tough decisions says a lot about you as a leader. Your team members and coworkers won’t only be looking at the outcomes of your decisions; they’ll also be paying close attention to your decision-making process.

Tough decisions are an inevitable part of the job, and you won’t always get them right. But that doesn’t give you permission to throw caution to the wind or simply toss a coin and hope for the best. 

Great leaders carefully weigh up all available information and possible outcomes. They consider a variety of different perspectives and reflect on how their decision will impact everybody involved. They then seek to make decisions fairly and strategically, using a mixture of analytical thinking and emotional intelligence. 

Once they’ve made a decision, great leaders communicate clearly and transparently regarding how and why they reached their decision, what the decision means, and how and when it will be implemented. And, whatever happens afterwards, they take full accountability. 

Approaching tough decisions in this way helps to build trust, establish psychological safety, and demonstrate your integrity as a leader. 

How to make tough decisions as a leader: 7 strategies and best practices

Here are 7 strategies and best practices to follow next time you face a tough decision:

1. Consider a variety of different perspectives
2. Identify different possible outcomes and their pros and cons
3. Set yourself a deadline
4. Trust your own judgment (and resist the urge to “people-please”)
5. Communicate your decision clearly and with empathy
6. Explain the reasoning behind your decision
7. Outline clear next steps

Let’s explore how you can put these practices into action. 

1. Consider a variety of different perspectives

The decision may be yours to make, but it will likely impact several other people. Start by gathering everything you know about the situation at hand and consider it from different angles. 

What does this decision mean for stakeholders X, Y, and Z? Whose input would be valuable as you make your decision? What knowledge and information are you missing? 

Begin the decision-making process with a full and clear picture. The better informed you are, the more confident you can be in your judgment. 

2. Identify different possible outcomes and their pros and cons

Now you can start to explore the “what ifs?” Think about the different possible outcomes, the likely impact of each outcome, and its pros and cons in relation to business objectives, company culture, and individual employees. 

You can think of these as your different decision pathways, and it’s helpful to map them out visually with pen and paper. You may not end up with a clear or obvious winner, but you will have a thorough assessment of the implications for each outcome. 

3. Set yourself a deadline

The thing with tough decisions is that you could mull them over forever. There’s no simple solution, and there’s very rarely a scenario that ensures everybody’s happy. While it’s important to take your time and think everything through, it’s equally important to set yourself a deadline — and stick to it. 

4. Trust your own judgment (and resist the urge to “people-please”)

You can weigh up the facts and figures, analyze the data, and get input from others. But, at the end of the day, it’s your call to make — and often that requires you to trust your own judgment. 

At the same time, resist the urge to “people-please”. Do practice empathy and consider how your decision will impact others, but don’t let your desire to keep everybody happy prevent you from trusting your instincts. 

You’re a leader for a reason. Have confidence in your ability to make tough decisions and follow them through. 

5. Communicate your decision clearly and with empathy

Once you’ve made a tough decision, it’s essential to communicate it clearly and with empathy. Take the time to speak with those who will be impacted directly — and, if necessary, devise a communication plan for how the decision will be shared with the rest of the team and/or company. 

Be prepared for how different parties may react to your decision and approach with sensitivity. Be open to questions and acknowledge that you understand how the decision impacts them. 

If tough, high-stakes decisions aren’t communicated clearly and promptly, people will jump to their own conclusions. Transparency is essential for maintaining trust and avoiding misunderstandings.

6. Explain the reasoning behind your decision

When you make tough decisions, you almost always run the risk of upsetting somebody or presenting them with an undesirable outcome. If that’s the case, it’s important to provide visibility into your decision-making process. How did you reach your decision? Why was it necessary to make the decision this way? 

You may not be able to change the outcome or lessen the impact, but you can help people understand the reasoning behind it. This kind of transparency and accountability is what sets great leaders apart. 

7. Outline clear next steps

You’ve made a tough decision and communicated it to all involved. From there, it’s essential to outline what will happen next. What steps and changes will follow as a result of your decision? What kind of timeline can be expected? Who is responsible for what? 

This final step is essential for implementing your decision, setting clear expectations, and helping your employees navigate periods of change. 

Making tough decisions: the takeaway

Tough decisions cannot be avoided. Each and every aspect of leadership requires decision-making — from prioritizing tasks and allocating resources, to dealing with conflict and shaping company culture. 

Confident and competent decision-makers are crucial for achieving business objectives and building a culture where trust, transparency, and accountability thrive. With the strategies and best practices we’ve shared in this guide, you can handle tough decisions with courage and care. That’s the true marker of a great leader!