‘Decision fatigue’ and its impact on business

Decisions keep businesses running. However, the constant pressure can take a toll on leaders, and the flow-on effects can be a detriment to overall organisational efficiency.

Periods of change can be especially dangerous in exacerbating decision fatigue. Setting a clear vision and mission can be a way to reduce the damaging effects, noted The Executive Connection chief executive Stephanie Christopher.

“CEOs, founders and senior executives shoulder immense responsibility. They know that the decisions they make each day can have a profound effect on the success of the business and the future of their team,” said Christopher.

“Decision fatigue often occurs when organisations are going through periods of change that lead to a departure from the business’s core strategy, goals or values. These moments of change can stem from positive opportunities such as rapid market expansion or when reacting to negative market conditions. Without an established vision and mission in place, leadership decisions become increasingly challenging because the objectives are no longer clear.”

The consequences of not dealing with decision fatigue can be immense.

Christopher continued: “The initial symptoms of decision fatigue include procrastination and delayed decision making. However, if left unchecked, decision fatigue can soon lead to stress, burnout, a reduced appetite for healthy risk and a decline in innovation. This can have a serious impact on the organisation’s productivity and performance, ultimately impacting the bottom line.”

Mitigating issues should be a top priority for promoting business efficiency, and according to Christopher, there are a few ways of going about this.

“The first step is to revisit the organisation’s foundations by redefining the company’s vision, values, purpose, and operating principles. These then become the starting point for all employees when evaluating business choices,” she explained.

“The next step is to gain some perspective. TEC members often express how valuable it is to step back from the business and listen to outside views. They are acutely aware of the importance of surrounding themselves with individuals who can identify the blind spots they might not have considered.”

“Better still, gaining insights from others with various experience levels or from different industries can help leaders to better predict the outcomes of their choices. This is where confident decision making can really make a return.”

The benefits of eliminating issues can help leaders confidently make informed choices that can positively impact the business.

“Having the space and time to review all the options, including feedback from others, allows leaders to push through the noise, fear and fatigue, leading to increased energy, elevated productivity, and improved mental health,” said Christopher.

“This, in turn, has a positive trickledown effect, creating a culture of empowerment and effective decision making throughout the organisation.”