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