Take the blindspots out of your decision-making!
31/07/2013
One of the modules I teach at Cranfield University’s Executive MSc in Managing Organisational Performance is about improving organisational decisions, in particular those relating to measuring and managing performance.
There is a great need in corporations to find out how to improve decision-making, and know how to actually implement the small but often critical steps it takes to remove decision blindspots that can cost a company and its shareholders dearly.
Don’t take my word for it: Researchers have meticulously documented the cost of making strategic decisions based on delusion and deception – in other words, by mismanaging information strategically and by manipulating the decision-making process in unhelpful ways, and estimate that performance as a result stagnates at about 50% below forcast.*
In a recent article for Think: Cranfield, I have summarised six ways to replace opinion with evidence-based insight when making importance performance decisions:
Not enough time? Then watch this 60 second video – an even shorter way to help you debias managerial decisions.
Enjoy. And let me have your comments below.
Jutta Tobias
* Bent Flyvbjerg, Massimo Garbuio and Dan Lovallo (2009). “Delusion and Deception in Large Infrastructure Projects: Two Models for Explaining and Preventing Executive Disaster.” California Management Review, vol. 51, no. 2, Winter 2009, pp. 170-193.
Categories & Tags:
Leave a comment on this post:
You might also like…
Bank holiday hours for Library Services: Monday 31 August
Library Services staff will be taking a break on Monday 31 August for the bank holiday. You will still be able to access all the resources and help you need via our library website. The 24/7 ...
The real cost of studying in the UK – what international students need to budget for
Moving overseas to pursue a postgraduate degree is one of the most exciting investments you can make in your future. It's also one of the most significant financial commitments you and your family will ...
Seven things you should definitely prepare for before studying at Cranfield University
You're thinking about Cranfield. Maybe you've done the virtual tour, read through the course pages, spoken to the course director or attended a webinar. Now, you're trying to figure out what life here is actually ...
From insurance to aerospace: why I chose to study a PhD with Cranfield
My path to studying for a PhD wasn't exactly a straight line. I had just graduated with an MEng in Aerospace Engineering from the University of Surrey and, like a lot of people, wasn't ...
How to build a business that keeps growing
Ask any business owner about their ambitions and "growth" will almost certainly feature near the top of the list. More customers, higher revenues, larger teams and new markets are often seen as signs of ...
Three practical ways SMEs can build resilience in a challenging business environment
Economic uncertainty, shifting customer expectations and rapid technological change have become part of everyday business. While no organisation can predict every challenge, small and medium-sized enterprises (SMEs) can improve their resilience by focusing on ...