The quality of your decision-making significantly impacts whether your business succeeds or fails. Research by Bain and Co. found a direct correlation between decision effectiveness and financial results, with a confidence level of 95%.
Even knowing the importance of clear thinking and sound decision-making, this awareness might not align with your reality as a startup leader. If stress often clouds your judgment, you're not alone. 70% of senior leaders say that burnout affects their decision-making ability.
Considering the inevitable pressure in startup environments, the question is:Â
How can you manage this stress to ensure you're making decisions that lead to success?
Mitigating stress boils down to your ability to recognize your body’s stress signals, utilize tools in high-pressure moments, and consistently practice building your stress resilience.Â
My Recognize - Regulate - Reinforce framework gives you evidence-based practices for each of these areas.
But first, let's dive into the link between your stress levels and decision-making quality.
Reflection
Prompt #1: Think back to a recent decision you made under stress. How did the pressure affect your thought process? Were you more inclined towards a quick, possibly impulsive decision, or did you notice a desire to avoid making a decision altogether?
Prompt #2: When faced with a challenging situation, how often do you pause to identify what you’re feeling? Can you name the emotions that typically arise during critical decision-making moments?
Prompt #3: Consider a time when stress led you to make a decision you later regretted. What were the consequences, and how do you feel about the decision afterward? With hindsight, what would have been a more effective approach?
The Neuroscience
Decision-making is more than just a mental activity; it involves your entire body. Whether you're deciding on breakfast or hiring an executive, your body and brain work together to guide your choices.
When stressed, your body signals this to you through:
Elevated heart rate
Rapid breathing
Sweating
Chest tightness
Stomach butterflies
Muscle tension
Headaches
Dry mouth
Shaking or trembling
Fatigue
These sensations, also known as hyperarousal, do more than cause discomfort—they impact your ability to think clearly and make wise decisions.
For more on hyperarousal, see my article on the "Window of Tolerance" (WoT).
Elevated heart rate is one of the most common stress indicators. You can see how stress affects your heart rhythm by tracking Heart Rate Variability (HRV), the variation in time between heartbeats. HRV reflects your resilience to stress and is controlled by the parasympathetic nervous system, which signals when to "rest and digest" — the state that allows for optimal decision-making.
A higher HRV indicates a flexible system and greater stress resilience, enabling clear decision-making. Conversely, low HRV suggests stress dominance, triggering a "fight or flight" response, which is not conducive to rational thinking.
So, how can you improve your HRV and consequently your ability to manage stress?
Recognize - Regulate - Reinforce Framework
You need tools to reduce stress in the moment and practices to increase your stress tolerance. You’ll find techniques for immediate stress relief and long-term resilience building in my Recognize - Regulate - Reinforce framework.
Recognize (Always)
Purpose: Develop your awareness so you can immediately recognize stress signals.
Practice: Regularly check in with yourself to notice any physical sensations or emotional states that may indicate stress or discomfort. Become mindful of your physical sensations and practice connecting them to your emotions without judgment.
I love this emotion-sensation wheel that Lindsay Braman created. It’s a jumping off point if you haven’t had much practice recognizing and labeling your emotions. The physical sensations in the outside ring may accompany that corresponding emotion. View this as a guide for further exploration.
Frequency: Constantly monitor your emotional and physical state to enhance your understanding of your body’s signals.
Regulate (Real-time)
Purpose: Activate your parasympathetic nervous system to quickly reduce stress.
Practice: When you’re in a state of stress and need immediate relief, physiological sighing is instantly accessible and effective at getting you into a state of calm. Here’s how to do it:
Take one big inhale through your nose, try to maximize the inflation of your lungs, and then before you exhale, sneak in another brief inhalation even if it’s just a bit of air. And then do a long extended exhale through your mouth. This is one of the fastest ways to reduce feelings of anxiety or stress — and you typically need to do it only once or twice to get the relaxation benefits.
Frequency: Practice as needed during moments of stress.
Reinforce (Daily or Weekly)
Purpose: Build overall resilience and expand your ability to handle stress through consistent practice.
Practice: Beyond foundational health habits (regular physical activity, restful sleep, balanced nutrition, and meaningful social interactions), add practices that challenge your stress response in safe conditions. This helps you learn to stay composed during stress.
Here are some techniques to try:
Cold Exposure: Brief cold showers, cold plunges, or splashing cold water on your face are great opportunities to practice calmness during discomfort.
Controlled Hyperventilation: Techniques like the Wim Hof Method use purposeful breathing patterns to teach body calmness during simulated stress.
Breath Holding: Gradually extending breath-holding periods safely introduces stress, teaching you to stay calm under pressure.
High-Intensity Interval Training (HIIT): This simulates stress through short bursts of high-intensity exercise followed by rest periods to foster quick recovery and resilience.
Progressive Muscle Relaxation (PMR): This involves tensing each muscle group in the body tightly, but not to the point of strain, and then slowly relaxing them. This process helps to understand and control the body's response to stress.
Sauna Use: Regular sauna sessions can mimic a stress response in a controlled environment. The heat induces a stress-like response in the body, which can help improve your tolerance to stress over time.
Meditation Under Distraction: Practicing meditation in a non-ideal environment (with noise or potential distractions) can enhance your ability to maintain focus and calmness amidst stress.
Frequency: Integrate these practices into your daily or weekly routines based on your schedule and preferences.
Resource Recommendations
If you’re interested in the science behind these recommendations, here are some resources to explore:
This study utilized the Iowa Gambling Task to show how Heart Rate Variability (HRV) impacts decision-making skills. It found that individuals with higher HRV are better at making decisions, suggesting they have a more effective handle on stress and emotions.
Episode #30 of the Huberman Lab Podcast gets into the intricate relationship between the body's organs and brain function, with a special focus on the vagus nerve and its role in stress management [specifically at the 01:38:53 mark].
A recent episode of Lenny’s Podcast,
featured Jonny Miller on managing nerves, anxiety, and burnout. Miller shares invaluable strategies for fostering a state of calm and maintaining control over one’s internal state.
These resources offer additional strategies and scientific perspectives on enhancing decision-making through better stress management and understanding the brain-body connection.
Challenge
Even if you’re already using some of the techniques I’ve shared, there's always space to experiment with something new or deepen your commitment.
Your challenge is to:
Look at what you’re already doing.
Pick something new.
Stick with it for 30 days.
Reflect after 30 days.
I’d love to hear how it goes. What did you try, and how did it impact your ability to manage stress and make decisions?
Final Note
The way you handle stress will be a major factor in your success this year. I hope I’ve sparked your interest in how to better manage the inevitable pressure that comes with leadership.Â
If you’d like to learn more about how I integrate body-based practices into your leadership strategy, I invite you to reach out. Let’s explore how founder coaching can elevate your decision-making and propel your business forward.
Amanda