In today's fast-paced and hyperconnected global economy, leaders are pressured to make multiple decisions and do so quickly.
In such an volatile environment, leaders tend not to take the time to reflect and use sound judgment; the result is hurried decisions that lead to poor outcomes for themselves and their organization.
In particular, some leaders tend to decide instinctively based primarily on their own experience, without paying enough attention to the changes in the larger context. Risk averse, they may either procrastinate when faced with difficult decisions or make decisions that may yield tactical benefits but be unviable in the long term.
Other leaders are more willing to make bold decisions that could generate strategic long-term benefits. But given their self-centered and emotional personality, they tend to rush into decisions without heeding their intuition, let alone getting input from others.
Wise leaders are more effective decision makers due to their unique decision logic--that is, the set of systems, processes, and reasoning principles they use in decision making--developed over time and tested in different scenarios. Context awareness and ethical clarity altogether form the cornerstone of a wise leader's decision logic. This clarity gives wise leaders discernment--the ability to judge well in crises and make ethically sound and yet pragmatic decisions using a combination of logic, instinct, intuition and emotion.
Source: Prasad Kaipa: From Smart to Wise: Acting and Leading with Wisdom