Why your gut is failing you
Digital transformation has been a buzz phrase for years now. While the pandemic has stuck a rocket under this change initiative, there is one area which has lagged behind: executive decision making. It is tempting to accuse senior executives as being digital Luddites causing this inertia.
That is a fair accusation.
Having said that, there are other factors that exacerbate the speed of transformation. In a 2019 Deloitte survey, 63% of executives did not believe their companies are data driven. Only 5% of executives believed that technology was the problem, while 95% of executives thought the problem revolved around culture, organisational structure and processes.
Taking a step back, let’s examine exactly what is a core function of a senior executive and why data-driven decision making is becoming increasingly necessary.
A senior executive such as the CEO is the leader of an organisation. The fundamental requirement of a leader is the ability to generate results. Preferably positive ones.
A successful leader is one who can consistently generate positive, measurable results which are aligned with the company’s goals and objectives. This is reliant upon their decision-making capabilities. The crucial aspect here is consistency. Relying solely on intuition can produce a positive outcome but there is no consistency or predictability. In today’s digital environment, to consistently make the right decision requires more than gut instinct.
Moreover, the traditional thought process which relies upon experience and instinct will have a lower probability of success where there is no precedence.
Such as a pandemic.
An informed decision has greater odds of being the right one. This is where data-driven analysis plays a leading role. Having access to accurate and insightful data enables a leader to be better informed thereby increasing the odds of generating positive outcomes for a business.
There would be few businesses that benefit from having less information about its markets, operating environment and financial performance.
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Please reach out to me at Cornell@qualia8.com if you want to learn more about data driven decision making!