Sounds simple, but are you doing it. We are all guilty of making a decision by emotion, but is this the exception or the norm for you and or your business? Add to this the old classic “but we’ve always done it that way” ……
Here’s hoping it’s not the norm!
I’ve recently seen a business make 80/90% of their decisions on emotion, and my life had they made some bad decisions. When we took stock, and started to delve into the systems and extract data, boy did the data indicate something different.
When we begin to measure we to begin to understand, when we understand we begin to gain control, when we have control we can now improve. Always ensuring we are measuring the correct output/input, as a Key Performance Indicator (KPI) drives behaviour, wrong KPI wrong Behaviour.
Managing by Fact is the notion that real knowledge in the form of empirical analysis of results is the shortest path to the best business decisions. That may seem obvious, yet few companies follow that principle. Many leaders make strategic choices based on nothing more than business fads or the dubious recommendations of advisers who are afraid to challenge the preconceived judgements or the organisational status quo. Quantitative or qualitative data that measures how well the strategy is working is often the last concern. Thus, critical company decision making, relating to acquisitions, restructuring, new product launches, sales and marketing, operations and the like, often takes place in the dark.
Comments, we can’t do that because…our answer should be “then show me why, justify to me why, mange by fact and data to help me make that informed decision” it’s not going to be on emotion and hearsay.
Put it this way, when managing by fact the business I refer to highlighted opportunities worth £1m+, not bad for just making that informed decision.