Kinds of Decision Making: How Top Leaders Make the Right Call
The Kinds of Decision Making Every CEO Should Master
Strong leadership isn’t just about setting a vision. It’s about making the kinds of decisions that drive growth, manage risk and align teams. While there’s no one-size-fits-all formula, successful CEOs develop decision-making frameworks that are adaptive, structured and based on context.
At Catapult Groups, we coach executives through the many layers of decision making – including strategic, tactical, operational and personal approaches. This guide breaks down the primary types, processes and styles of decision making that every decision maker should understand to operate effectively.
Types of Decisions: Strategic, Tactical, Operational and Personal
Strategic decisions shape the long-term direction of a company. These involve high uncertainty and broad organizational impact. Made by top executives, they often determine market positioning, acquisitions and resource prioritization.
Tactical and operational decisions support strategic goals and focus on mid- to short-term execution. Tactical decisions typically involve departmental plans, while operational decisions guide day-to-day activities and workflows.
Personal decisions affect an individual's own goals, responsibilities or careers. In an executive setting, these include decisions about leadership style, delegation or time management.
Programmed vs. Non-Programmed Decisions
Programmed decisions are routine and based on established rules or procedures. These decisions are low risk and often automated – ideal for repetitive tasks like expense approvals or inventory restocking.
Non-programmed decisions are novel, complex and unstructured. These decisions require deeper analysis, creativity and sound judgment. Entering new markets or responding to a crisis would fall under this category.
Understanding the pros and cons of each type helps determine whether a structured or flexible approach is best.
Policy vs. Operational Decisions
Policy decisions are high-level and govern company direction. They define frameworks for behavior and decision-making across the organization. For example, a remote work policy or company-wide pricing strategy.
Operational decisions implement those policies at the ground level. These are action-oriented and tactical – such as setting work-from-home schedules or applying discounts for specific clients.
Individual vs. Group Decision Making
Individual decision making is fast, focused and places responsibility on one person. It enables speed but may limit diverse perspectives.
Group decisions involve input from multiple contributors, allowing for better problem solving and broader accountability. This is ideal for decisions that affect cross-functional teams or organizational culture.
To choose the right approach to decision making, consider the scope, urgency and need for buy-in.
Decision-Making Processes: From Rational to Intuitive
Rational decision-making follows a step-by-step approach:
- Identify the problem
- Gather information
- Develop a course of action
- Weigh pros and cons
- Make a choice
- Evaluate outcomes
This approach ensures structure and objectivity. Bounded rationality decisions acknowledge cognitive limits, time pressure and incomplete data. Instead of seeking the best outcome, the goal is a good-enough choice – a concept known as "satisficing."
Intuitive decisions rely on instinct and past experience, especially when time is limited or stakes are high. Effective decision makers blend intuition with facts to balance speed and accuracy.
The Vroom-Yetton decision-making process helps leaders determine how much team involvement a decision needs. It balances efficiency with inclusion.
Decision-Making Styles
Understanding your decision making style is crucial to leading with clarity and purpose.
Directive: Decisive and focused on immediate action. Directives work best in crises or when direction is needed quickly.
Analytical: Thorough, evidence-based and process-oriented. Ideal for decisions involving metrics and performance.
Conceptual: Strategic and visionary. Best for innovation, transformation or long-term planning.
Behavioral: Empathetic and relationship-driven. Effective for team leadership, communication strategies and morale-sensitive choices.
Each style contributes unique value depending on the situation. The best decision makers know when to switch styles or combine them.
Decision Tools and Models
Decision matrix: Compares options across weighted criteria to support objective ranking.
Decision tree: Visual tool that maps options and potential outcomes.
SWOT analysis: Helps assess the strengths, weaknesses, opportunities and threats associated with a choice.
Availability bias checklist: Ensures recent experiences or vivid examples don’t skew your judgment.
These tools enhance clarity and improve the quality of both individual and group decisions.
What Kind of Decision Maker Are You?
Great leaders don’t rely on one model or method. They develop fluency across multiple decision-making styles and frameworks. Whether the challenge is tactical, strategic or personal, decision makers who understand their own patterns can better lead through complexity.
At Catapult Groups, our executive coaching and peer advisory programs help CEOs sharpen their decision-making process through real-time feedback, strategic input and accountability.
Join our Las Vegas peer advisory group and start making decisions with clarity, support,and confidence.
