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Intuitive Decision Making

Written by: Harry Hayden

Article Overview: Good decisions, bad decisions, indecision, procrastination – we see them all in business on a regular basis. Making good business decisions is about consistently doing the right thing for the business at the right time. Put it like that and it sounds simple – if only it were!

Intuitive Decision Making

To do the right thing for the business you need to know what that is and the reality is that there are often many conflicting or obstructing elements and people that apparently need to be factored in or considered. Then there is that all important final ingredient - timing.

Institutional vs. Entrepreneurial.
There are many large and established organisations that find it very difficult to make the rapid decisions that newer and smaller more entrepreneurial companies do. For this reason the larger companies will often miss out on the window of opportunity.

That’s not to say that entrepreneurial rapid fire decision making always wins over the more sluggish established approach. The dotcom boom and bust serves as a reminder that the road to good decision making is littered with well-intentioned casualties.

Scientific Decision Making.
There are numerous models designed to make decision making an exact science. Many derive from MBA theory promoted by large management consultancies. They may focus more on decision justification (protection of “le derriere”) than on true decision making.

In many large and often stagnant companies, decision making is reserved for the very top echelons. Rules and controls are in place to prevent lesser (often better informed) people from being able to make decisions where they may have better & more “intuitive” experience.

To move fast, taking advantage of viable windows of opportunity to rapid growth, companies need more effective and devolved means of making decisions. They also need to be able to recognise and halt a bad decision in its tracks, perhaps writing off investment to date.
 
Sound Judgements.
There are some people that just seem to be able to make good decisions on the fly. They seem to know intuitively what questions to ask, what information is vital and when the best time to act is. Then they act decisively and more times than not their judgment is sound.

To remain successful, they also must recognise when they are on unfamiliar territory and call in credible expertise to assist them with the decision making process. The decision should remain theirs, but they are being guided by someone with the experience they lack.

Familiar Territory.
So intuitive decision making can only have a high success rate when the decision maker is on familiar ground and basing decisions on extensive and valid experience. This is what enables them to intuitively see “the obvious” way forward that others may be blind to.

Intuitive decision makers can make more conservative types very nervous as they may feel the need to look at each and every angle in agonising detail. This is where leadership comes in by getting others to buy into your decisions only using coercion as a very last resort.

Unfamiliar Territory.
Now here’s the potential downside for intuitive decision making. People with the skills and experience to make good intuitive decisions when on familiar territory are often tempted to stray into unfamiliar territory and practice these same skills to their severe peril.

Imagine a very decisive and successful entrepreneur that has built a flourishing business developing and selling business software systems. He/she then decides to move into the far less familiar but attractive territory of opening and running a string of luxury gymnasiums.

If they were to solely rely on the intuition that has previously served them so well, they are significantly more likely to come unstuck in this new venture. However if they recognise their immature expertise here and engage credible experts, they increase their chances of success.

For further information and other free articles see Perform Coaching website

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  The Intuitive Genius of Your Being
  Should I Decide with My Head or My Gut?
  Identifying Decision Making Strategies
  Why the Surgeon Refused to Operate

Article Tags: bad decision, best time, boom and bust, casualties, derriere, do the right thing, dotcom boom, echelons, entrepreneurial companies, exact science, intuitive experience, justification, larger companies, management consultancies, mba, rapid decisions, rapid fire, rapid growth companies, sound judgements, window of opportunity



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