In a world that demands both urgency and accuracy, great leaders know that timing is everything. Some decisions require swift action. Others demand reflection, collaboration, and rigor. The problem? Most leaders default to one or the other. They either move too fast and miss critical inputs, or overanalyze and stall, waiting for perfect certainty that never comes.
In order to be effective, leaders must know how to build judgment. This is the ability to discern when speed is the answer, and when precision is worth the pause.Speed wins markets, but precision avoids regrets. 3rd leaders know how to balance both.
Know What Type of Decision You’re Making
The first step is knowing what you’re really deciding. Leaders can categorize decisions based on impact and reversibility:
- High-impact and irreversable? Slow down. Think. Bring in multiple perspectives.
- Low-impact and reversible? Move fast. Empower your team to decide and iterate.
Jeff Bezos refers to this as distinguishing between Type 1 and Type 2 decisions.Type 1 decisions are “one-way doors”, they deserve time and caution. Type 2 decisions are “two-way doors”, you can walk through, test, and walk back if needed. Don’t treat them the same.
The trap? Many teams run by a 1st leader treat every decision like a Type 1. The result is analysis paralysis, wasted energy, and missed opportunities.
Use the 70% Rule for Momentum
In the face of uncertainty, many leaders wait for 100% clarity before making a move. However, 3rd leaders understand the 70% Rule: If you have about 70% of the information you need, and the decision is reversible, it’s time to move. Waiting for more data often leads to diminishing returns, where delayed action can become a bigger risk than making the “wrong” call.
What makes this work? Strong follow-through. Make the call, monitor the results, and adjust quickly. Action without reflection is reckless, but waiting for perfect information in an imperfect world is a luxury you can’t afford.
Build Team ConfidenceThrough Decision Routines
One reason teams stall on decisions is fear; of getting it wrong, of being blamed, of not being heard. That’s why great leaders don’t just make decisions. They create decision-making environments. This includes:
- Clarity on who decides (and who's consulted)
- Time-boxed discussions with clear inputs
- Post-decision check-ins to debrief what worked and what didn't
This is an intentional cadence. Teams need a rhythm of fast, thoughtful, iterative decision-making to build trust and reduce friction, and leaders set that tone.
Pro tip: When it’s a team decision, start with your team’s thinking before giving your own.This fosters accountability and develops judgment across the board.
Know When Precision Is Non-Negotiable
While speed helps with momentum, there are moments where precision matters most. Use extra care when:
- The decision affects people's jobs or livelihoods
- There are ethical, legal, or reputational stakes.
- You're navigating values conflicts or potential trust erosion
In these cases, slowing down isn’t weak, it’s wise. 3rd leaders take the time to gather input, reflect, and align their actions with long-term principles. They know when a rushed decision today could create a firestorm tomorrow. The key is to slow down intentionally, not avoid the decision altogether.
Speed and Precision Aren’t Opposites; They’re a System
The best leaders don’t pick one or the other. They build a system that supports both.That system is built on:
- Clarity of decision types and roles
- Alignment on purpose and outcomes
- Movement through intetional pace and feedback
When that system is in place, your team doesn’t just move faster, they move smarter. Doing so enables you to build an organization that can navigate change, uncertainty, and complexity with confidence. Leadership isn’t about guessing right. It’s about creating the conditions for better, faster, smarter decisions over time.