Leadership Competencies in Management Assessment – Part 2: Decision-Making Capability

How do your (internal or external) candidates deal with decisions under pressure? How do you recognise genuine decision-making capability?

What does decision-making capability mean?
Decision-making capability refers to the ability to make sound decisions under time pressure, uncertainty or incomplete information. Central to this is the ability to filter relevant information, evaluate alternatives and take responsibility for a chosen course of action. At times, this also requires courage – but without acting prematurely or arbitrarily.

Why is this relevant for leadership?
Leaders are required to make decisions – even when not all information is available. Those who hesitate for too long risk losing not only time but potentially the trust of their team. Making decisions means taking responsibility for outcomes, risks and consequences.

How do we address this in management assessments at managerberater?
Within our diagnostic approach, the managerberater Business Review, we work with real-life situations drawn from the professional context of experienced managers with overall accountability for results and use these to examine their decision-making capability. For high-potential candidates at a more junior level, we also use practical case studies focused on assessing and evaluating complex decision scenarios. Among other aspects, we evaluate:
– decision logic and clarity
– the handling of ambivalence
– depth of reasoning and risk awareness
– stance towards the decision and consistency

A common practical misconception
Decisions are being avoided through endless analysis. Effective leadership, however, is not defined by perfection, but by the ability to decide.

How do you assess decision-making capability among leaders in your organisation? Where do you see the limits of traditional selection processes in evaluating this competency? Contact us!

Share