How to Make Smarter Business Decisions Under Pressure

Leaders do not have the option of waiting for ultimate clarity. Being able to make quick, excellent decisions is perhaps the single most essential leadership capability. CEOs who make quicker, better decisions are 12 times more likely to surpass their peers, McKinsey says. But too many business owners are paralyzed when confronted with high-stakes decisions, bracing for expensive errors or regretful missteps.

The secret to confident decision-making in high-pressure situations isn't luck or talent. It's a matter of employing structured frameworks, mental models, and live strategies to handle uncertainty. By getting ready beforehand, breaking down difficult decisions, and remaining flexible, you can decide quicker and better—even in the most intense situations.

Decide in Advance: Remove 80% of the Stress

One of the largest reasons individuals fail under pressure is that they are compelled to make decisions they have not prepared for. The greatest business leaders minimise decision fatigue by establishing default rules for typical situations.

Amazon's Jeff Bezos divides decisions into two types. Type 1 decisions are high-priority and irreversible, and they need a thorough analysis. Type 2 decisions are reversible and need to be made rapidly. Most business decisions belong to the second category, but most leaders consider them as if they need painstaking debate. What happens as a result is lost time, lost opportunities, and unwarranted stress.

One easy way to do this is to pre-write decision templates. If revenue declines by x percent, what is the instant response? If a major employee departs, what is the response? Stating pre-determined responses in advance prevents emotion from entering the equation when the time of stress comes.

Apply the 10-10-10 Rule to Minimize Overthinking

When faced with a tough decision, it’s easy to get stuck in short-term thinking. The 10-10-10 Rule, developed by business author Suzy Welch, forces a broader perspective.

Before making a choice, ask: What are the consequences in 10 minutes? In 10 months? In 10 years?

This approach is potent because the vast majority of poor choices are born out of compromising long-term excellence for short-term convenience. You might be agonising over whether to terminate a poor performer, for example. In 10 minutes, you will be uneasy. In 10 months, your team will be more efficient. In 10 years, you likely will not even recollect the aggravation of the moment, yet you will enjoy a more high-performing organisation.

By moving your focus beyond momentary discomfort, the decisions become simpler to make and more obvious.

Use the 70% Rule: If in Doubt, Move Forward

One of the most prevalent business myths is that you must have perfect certainty before a decision is made. The truth is, holding out for perfect information is often the riskiest option.

Former U.S. Secretary of State Colin Powell created the 70% Rule for making a decision in pressured situations. Having 40% to 70% of the information you need to make a decision, take action. Under 40% equates to you guessing, and waiting for more than 70% will always result in someone else getting opportunities.

For example, if you’re considering a new product launch, you don’t need to be 100% sure of its success before testing a small batch. You only need enough confidence that the upside outweighs the downside. If it works, you expand. If it doesn’t, you adjust. The key is recognising that speed often beats perfection in business.

Break Down Big Decisions to Avoid Paralysis

A usual cause of stress is that people set decisions up as enormous, either-or options. The solution is to break them down into smaller, less daunting steps.

Rather than agonizing over whether to undertake a big marketing push, begin with a trial version on a shoestring. If it pays off, expand. If not, modify. This "ladder" method lowers fear and facilitates action.

Startups employ this approach regularly. Instead of creating a high-end product at the beginning, they introduce a minimum viable product (MVP) to measure market demand. The same logic applies to every business decision. Instead of getting anxious about making one grand step, divide it into experiments with control.

Steer Clear of the Sunk Cost Trap: Know When to Walk Away

Most businesspeople are victims of the sunk cost fallacy—the tendency to keep throwing good money after bad simply because money or time has been invested. This is one of the quickest ways to make losses compound.

A good example is Nokia not changing when smartphones arrived. Despite initial indicators that iOS and Android were transforming the business, they kept investing in old models. This led to a sharp downfall that could have been prevented had they been ready to cut their losses earlier.

Rather than asking, "How much have we already spent?" ask yourself, "Would I start this today if I knew what I know now?" If the answer is no, it's time to leave. The greatest leaders pivot quickly rather than doubling down on bad strategies.

Train for Decision-Making Like an Athlete

Decision-making is a muscle that can be trained, just as physical conditioning. The best leaders train to think on their feet before they must.

Billionaire investor Warren Buffett spends 80% of his time reading and thinking, developing his skill to make high-levity decisions. Navy SEALs prepare themselves for high-pressure moments through scenario-based combat drills so they will react habitually when faced with an actual crisis. Hedge fund managers perform decision drills, quickly running various market scenarios by building mental nimbleness.

If you only have high-stakes decisions under your belt when crisis strikes, you will always be reactive. But if you exercise small, low-stakes decisions in controlled environments, you'll be prepared when it counts the most.

A simple way to apply this is by limiting daily trivial choices (such as automating tasks, simplifying routines, or delegating decisions) so that your mental energy is reserved for critical business calls. Reviewing past decisions, analysing what worked, and adjusting your process also strengthens your decision-making ability over time.

Action Beats Perfection

Success in business isn't about not making mistakes—it's about making better, faster decisions and learning from each result. Great leaders don't wait for clarity. They apply tools such as the 70% Rule to prevent overanalysis, the 10-10-10 Rule to focus on long-term effects, and the ladder method to break down overwhelming decisions into bite-sized steps.

More significantly, they know when to abandon ship and shift gears rather than allowing ego or sunk costs to guide strategy. They practice decision-making as a skill so that they are prepared for high-stakes situations before they even happen.

The greatest lesson? Quick, strategic action trumps slow, tentative perfection—hands down.