Smart – Data Driven – Decision Making

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Realizing that our world is continuously changing, and that the environment we live in is constantly reshaping is one thing. Business masterminds have always talked about how important adaptability is and why leaders, managers, and companies should learn to be adaptable. The first lesson you learn in business management 101 is about operating a business in an ever-changing environment. Facing new challenges will always be part of our everyday life from the simplest to the most complex aspect of it. So how can we always make the best of it?

Either we like it or not our world at the moment is going through some massive changes. These changes have already affected, and will continue to affect our lives and the way we conduct business. The great impact the virus has on our financial system creates a hard to operate and more challenging environment for companies. In simple words that means that companies have no room left for failure because any mistake could be fatal for them. Therefore we come to the understanding that every choice that has to be made will have to be very well calculated. Decision making will play a massive role in the future in order to avoid mistakes that could be harmful for companies and organizations. So what is this new Decision Making standard and how can a company implement it? Let’s see!

The History of Decision Making

People always had the ability to make decisions for themselves, their actions, or their future. Our survival as humans was based on instincts and intuition and these decisions were crucial on maintaining self perseverance. Initially our gut was what guided us in times of need and when we had to make some serious decisions. Over the years though people evolved and learned how to assess different situations and different factors in order to make decisions. In simple words decision making was a survival tool over the years and it evolved as we humans evolved. Today people have the ability to follow their instincts, assess situations with logic and nowadays use smart decision making.

Understanding the Complexity

It is quite easy to make a decision for a simple problem, but what happens to bigger and more complex ones? Obviously there are different scales of problems and obviously they need different approaches in order to be solved. This is where Smart Decision Making comes in. Since the early 1960s people understood the importance of data. Retrieving data and learning how to analyse it has been proven a game-changer when it comes to businesses nowadays. Data might not seem important when it comes it to small personal problems but it is gold when it comes to business. Everything around us generates data and the more we collect and analyse the more efficient our decisions will be.

Smart Decision Making

So in simple words decision making is now turning into smart decision making. Companies now collect data, analyse it and try to find the most efficient solutions for their problems. This data driven approach is what allows us to call this type of decision making “smart”. Leaders will continue to make decisions and navigate their teams based on their instincts and intuition but smart decisions are here to stay. The amount of data a company can collect can be pure gold when it comes to decision making. Therefore data collection, and data analysing has to become a core attribute of any company’s management model.

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How to Implement Smart Decision Making

So now there is one question left to be answered when it comes to smart decision making. How can a company make its decision making smart? The answer lies in three simple steps.

  • Collect & Analyze: Understand what type of data your company generates and find a way to collect and analyze it.
  • Evaluate: Once you have collected and analyzed your data, then it is time to start looking at solutions. You will understand that it is easier to make a decision now than it was before.
  • Act & Do it Again: Give the decision you made a chance by actually implementing it but don’t be afraid to change it. Evaluate the results and repeat the procedure in order to maximize efficiency.

The world as we knew it until now has been changing and will be changing for a long time. Emotional driven leaders still have great influence but the truth is that data will come to over rule them. But remember the optimal solution is hidden somewhere in the middle between intuition & data.