What is decision fatigue and its impact on strategic decision-making?

Decision fatigue refers to the phenomenon where an individual's ability to make decisions deteriorates after a prolonged period of decision-making. This can occur when a person is faced with too many choices or has to make numerous decisions in a short time frame. As a result, the cognitive resources available for decision-making become depleted, leading to a decline in the quality of decisions.

In the context of strategic decision-making, this can significantly impact the effectiveness of leaders and managers. When individuals experience decision fatigue, they might resort to less thoughtful approaches, rely on heuristics or oversimplified choices, or even delay making important decisions altogether. Consequently, this could lead to poor outcomes, misjudgments, or a lack of innovation in strategic planning.

This understanding highlights the importance of managing decision-making processes, such as structuring decisions strategically, prioritizing key choices, and allowing for breaks or periods of rest to mitigate the effects of decision fatigue.