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Tuesday, October 09, 2007

Ingredients for Good Decision-Making

In a 2007 survey of 154 global C-level executives, conducted by the Economist Intelligence Unit (EIU) and commissioned by Business Objects, the research found that more than 9 out of 10 corporate executives admit they are making important decisions on the basis of inadequate information.

Other findings from this decision-making research:

  • Less than 10% of executives receive the information they need.
  • 72% of execs believe management decision making is only moderately efficient or worse.
  • 25% of executives believes management frequently, or always, gets its decisions wrong.
  • 56% of executives are concerned about making poor choices because of bad data.
  • 55% of executive decisions are based on ad hoc consultation instead of corporate metrics.
  • 70% of senior managers rate decision-making as moderately efficient or worse vs 52% of C-level superiors.
  • Yet, only 29% of executive think poor decision-making structures are a common cause of bad decisions.

The ingredients for good decision-making?

The report's authors identify five ingredients of good decision-making. Obviously, supporting good decisions requires a lot more than technology, but business intelligence systems can help with each of these:

  • High-quality data
  • Access to advanced systems and training
  • Sound judgment
  • Trust
  • Flexibility

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