Around half of all business decisions fail, and the reason is due to management mistakes. That's the statistic discovered by researchers at Ohio State University. It seems an amazingly high number on paper, but when you think about how executives approach even their biggest business decisions, perhaps it's more surprising that this percentage isn't even higher.
Most decision makers base their decisions on opportunity, not on the results of careful deliberation. As few as one in three respondents to a PwC study said their decisions are highly driven by data – the rest are sailing blind into the unknown. A further third said they value these decisions in excess of US$1 billion, so the risk associated with poor decision making is easy to see.
In a highly target-oriented world, getting the big decisions wrong has cost jobs, while those who get the important ones right often have long and rewarding careers. Basing decisions on the relevant information is clearly integral.
Information is valuable to any decision. Whether it’s reading from a menu at a restaurant or using data analytics to choose when the best time is to undertake a merger or acquisition, doing so without the right insights is likely to land you with the wrong result entirely.
This is where Experience Matters steps in. We help clients manage information as the valuable business asset it is, ensuring that the information required to make important decisions is there when you need it. Access to the right information at the right time is critical for many key business activities including:
- Creating a business strategy
- Preparing for mergers and acquisitions
- Targeting new markets
- Designing new products
- Managing business risk
- Forming recruitment strategies
- Succession planning
A three-pronged approach to improving the success of decision making involves attaining the right information, organising it and accessing it when needed. To make decision making quicker and more successful, we focus on the following:
- Improving information gathering. An independent audit of your current practices ensures you’re able to find and safely store the right information in the first place.
- Developing data organisation. Once the right information is stored, you and specific members of your team need to access it, and using the correct information practices, you can do so quickly and efficiently.
- Improving data governance. We ensure you have the frameworks in place to put information into the wider business strategy, utilising it as the integral asset it is.
After all, information is one of four key business assets – joining financial, people and physical assets – and yet very few businesses are treating it like one. The mistakes for mismanaging information are perhaps never seen as clearly as they are during the decision-making process – nor are the advantages of getting information management right.
With careers, finances and business continuity at stake, isn’t it time to ensure that you are using the right information to make your next big decision?