Lessons from a CEO on Decision-Making Under Pressure

Igor Reshynsky is the Chief Executive Officer at TaxBuddy Canada. He is an experienced leader in the consulting, accounting and business transformation space. He has obtained his CPA designation followed by MBA from Ivey School of Business.

In the high-stakes realm of business, decision-making under pressure is not a matter of choice; it constitutes a daily reality. Leaders must act decisively and should not compromise on outcomes. This principle holds true for market changes, managing internal crises, and confronting economic challenges.

With over ten years as a Canadian CEO, I've faced many tough decisions. I often have had to make choices with little information and during fast changes. Effective decision-making under pressure constitutes a skill that is refined through both practice and comprehension. This article provides essential insights for leaders aspiring to sustain focus and poise in critical circumstances.

1. Build a Foundation of Preparedness

Strategic Readiness Supports Confident Action

The best way to make good decisions under stress is to prepare before pressure arises. Although we cannot control external factors, establishing internal systems allows for rapid and informed decision-making.

How to Prepare

• Create decision-making frameworks in advance (e.g., risk matrices, escalation protocols).
• Maintain current and accessible financial dashboards.
• Develop contingency plans for the supply chain, staffing, and regulatory changes.

Enterprises frequently function within intensely regulated frameworks. The availability of real-time data alongside explicit governance policies facilitates prompt and judicious decision-making.

2. Rely on Principles, Not Just Emotions

Anchor Decisions in Core Values

Emotions can hinder decision-making in a crisis. The most effective CEOs I've collaborated with rely on their mission, values, and long-term objectives as a guiding framework.

CEO Insight

In 2020, our organization faced a substantial drop in revenue. Instead of quickly adopting reactive cost-cutting measures, we chose to protect jobs by reducing executive salaries. At the same time, we benefited from systems we had set up in advance, which enabled a fast transition to remote work and seamless support for our clients. These proactive steps not only reduced employee stress but also ensured uninterrupted service and compliance with government regulations. Our commitment to supporting our employees contributed to high morale and a reduction in turnover rates over time.

Simple principles help in making good decisions under pressure, especially with little data and a short time.

3. Simplify the Problem Quickly

Focus the Question, Narrow the Options

When confronted with pressure, executives frequently encounter intricate and multifaceted challenges. One of the most valuable lessons I have learned is the importance of expediting simplification. This involves deconstructing the issue to its fundamental question.

Framework to Apply

• What is the immediate risk or opportunity?
• What decision must be made right now?
• What options are realistic given current constraints?

This process improves the effectiveness of decision-making when under pressure and reduces cognitive overload.

4. Use the 70% Rule

Don’t Wait for Perfect Information

Canadian CEOs value thoroughness. Nevertheless, pursuing absolute certainty in urgent situations may incur significant costs. Former Amazon CEO Jeff Bezos popularized the “70% rule”: Act when you possess 70% of the information that you desire.

Why It Works

• Promotes timely decisions.
• Reduces overthinking.
• Creates room for adaptability and modifications.

In high-pressure scenarios, swift decision-making usually favors speed over perfection.

5. Leverage a Trusted Inner Circle

Seek Input, Not Consensus

Prompt decision-making does not imply unilateral decision-making. As a CEO, I frequently seek advice from a small, diverse team. I rely on them during challenging moments.

Best Practices

• Assemble a core team with financial, legal, and operational expertise.
• Keep decision-making discussions brief and focused.
• Empower the team to present unfiltered perspectives.

This guarantees that decision-making in high-pressure situations is conducted in a balanced, objective manner and is aligned with the broader goals of the organization.

6. Communicate Decisively and Transparently

Manage Uncertainty with Clarity

Once a decision is made, communication must be clear, confident, and consistent. In businesses, clear communication is key. It builds trust, especially in diverse or remote teams.

Key Communication Tactics

• State the decision and rationale clearly.
• Address anticipated concerns upfront.
• Reinforce the values driving the decision.

Clear communication builds leadership credibility and improves employee engagement during uncertain times.

7. Accept Trade-Offs and Imperfections

Every Decision Has a Cost

When making swift decisions, trade-offs are often encountered. Acknowledging this truth reduces the chances of second-guessing and internal conflict.

CEO Example

In 2024, one of our clients experienced a supply chain breakdown. They had to choose between delaying product launches or paying extra for air freight. And chose to prioritize speed. Profit margins dipped for a bit, but customer satisfaction stayed high. The brand's reputation also remained strong.

Recognizing that making decisions under pressure requires compromise enables advancement without regret.

8. Review Outcomes and Capture Lessons

Debrief to Improve Future Decisions

In fast-paced industries, post-decision analyses are often overlooked. However, assessing both the successes and failures improves future decision-making skills.

Post-Decision Checklist

• What assumptions were accurate or flawed?
• How did execution align with intent?
• What would you do differently next time?

Canadian businesses can make this happen with quarterly leadership reviews. This will boost their long-term resilience and agility.

9. Maintain Mental Resilience

Decision-Making Is a Cognitive Skill

The ability to perform under pressure is tied to physical and emotional well-being. As CEO, I prioritize time for exercise, strategic solitude, and mental resets.

Resilience Practices

• Establish boundaries regarding work hours.
• Practice patience and understanding.
• Maintain connections with colleagues and mentors.

Successful executive leadership necessitates resilience. It helps in making lasting decisions during tough situations.

10. Act as a Role Model for Decisiveness

Your Behavior Sets the Tone

Your team observes your approach to crisis situations. The confidence, composure, and clarity exhibited in your actions serve to inspire analogous behavior in others.

Leadership Lesson

During the organizational restructuring, I prioritized visibility, open communication, and a consistent routine. This strategy was crucial in mitigating employee anxiety and panic, even when implementing difficult changes.

Strong leadership builds a team that is ready to manage pressure effectively.

Conclusion

In the dynamic Canadian business environment, effective decision-making is paramount for leaders. This skill is essential for risk management, opportunity realization, and navigating disruptions, significantly impacting both immediate stability and sustained success.

My lessons, based on real executive experience, show that resilient leadership comes from four key elements: preparation, principle-driven thinking, effective communication, and reflective practice.

By using these strategies, business leaders can confidently handle pressure and lead their teams through uncertainty with strength and clarity.