Risk & Decision-Making

Waiting Can Be So Difficult

January 9, 2021 /

As leaders, sometimes we face situations where we must wait on third parties to act. That waiting can be hard, painful, and exhausting.

As company leaders, sometimes we must wait for existentially important decisions and actions controlled by parties outside our company.

When it is crucial, and we are forced to wait for someone else’s actions, it is not easy. I am not talking about the patience we exercise on little things, but the difficult challenge of waiting on decisions and actions that have enormous consequences for our company. Situations where, if those decisions and actions go against us, it could kill our company. Examples of these sorts of decisions include:

  • Waiting on investors for an acceptable term sheet that will fuel the next phase of our company’s development.
  • Waiting on the actions of regulators to approve the marketing of a breakthrough new product. 
  • Waiting on the actions of an important potential strategic partner who will bring powerful resources to bear on our next tasks.

I have faced these situations – that can linger for days, weeks, or months — in every one of my startup companies.  The pressure of the waiting comes from the uncertainty imposed on your decision-making framework. As company leaders, we make decisions every day. We craft plans that integrate different elements together and chart a path forward. We hire staff, consultants, contractors, and commit resources to do the work of the business. We develop materials to tell our company’s forward-looking story to potential investors, partners, customers, and others.

While it is typical for startup CEOs to have to navigate uncertainty and make considered judgments about the options available in the ordinary course of work, when you are waiting on significant decisions from third parties like my examples above, the uncertainty and often extreme impact of the potential outcomes make the process much more complicated.  You must ask yourself how confident am I that the money will come? That the approval will happen? That a deal will be struck?  How much can I afford to commit to preparing for the potentially positive outcome versus preserving resources in case the result is a negative one?  And, perhaps most challenging, how much opportunity cost can I afford to take? 

On the surface, it seems like one should just wait patiently for the result.  However, doing nothing means that team members’ efforts are wasted, and value is not being created, so the pressure to do something is intense. The longer the waiting drags on and the greater the uncertainty about when a decision will be reached, the more difficult and consequential the bets you are making become. The need to continue to do what you can to build value is strong.

Here are some of the principles I apply when faced with these forced waiting situations like I am facing right now. Hopefully, these tips are helpful:

FOCUS ON WHAT YOU CAN CONTROL

As you navigate the decisions you need to make, even in the fog of uncertainty, focus on what you can control. You can prepare for the best case, the worst case, and the most likely outcome. You can seek those actions that add value in most cases. You can lead your team to plan, design, and develop materials, relationships, and other things that position you to act once you have clarity on the third party’s actions. You may have to make resource bets – both time and money – based on the best information you have and the level of risk you can afford to take.

Try to avoid overcommitting until the situation clarifies, as unwinding those commitments in response to further delays or investing prematurely in building out your team or infrastructure can be very painful. Remember that there is a balance to be struck between the risks of actions and resource commitments that can shorten your cash runway and the risks of not acting, not making bets that can waste your opportunities.  Try to make such decisions as consciously and intentionally as possible. Make progress on the things you can control.

COMMUNICATE

When you are dependent on a third party, part of what makes the situation difficult is that it affects others, such as your team, your partners, and your customers, as well as you. Endeavor to manage expectations through regular honest communications on what is going on and what decisions and commitments you are and are not making. This is particularly important in skillfully managing the expectations and concerns of your Board of Directors. It is also vital in keeping your team focused on the right things.  Just always remember that others are worried about the situation as well and enable them to make the best decisions possible by helping them understand the strategic picture and uncertainties.  Leaving others in the dark just erodes their trust in you and your leadership.

MANAGE YOUR STRESS

The need to make decisions and bets even while waiting is incredibly stressful. It is vital that as you navigate the uncertainty, you also manage your stress. Remember to carve out time to take care of yourself through exercise, sleep, and healthy eating so you can make the best decisions possible.  For support, talk to a few empathetic listeners you might find amongst your peer CEOs, family, friends, and team for emotional support. But keep in mind that while these relationships can provide support, only you can synthesize all the factors and make the difficult calls.

Managing the wait in all of its complexities is one of the great operational challenges of leading a startup. By being aware of the inherent challenges, you can develop your ability to be effective in those seasons.

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