What stops us from making better decisions?

“Informed decision-making comes from a long tradition of guessing and then blaming others for inadequate results.” Scott Adams

It’s perhaps not surprising that the creator of the Dilbert comic strip has a rather cynical view on decision-making. However all of us, if we’re honest with ourselves, are regularly party to decisions made using poor data, unclear criteria and a shaky process – gut feel and the power of personality often rules the day.

So what stops us from making better decisions? Here are the top factors we’ve identified:

• Little or no attention paid to the process of making a decision. When no one takes ownership of and structures the decision-making process, the discussion is likely to be chaotic and key factors may be ignored.
• A culturally-embedded notion that ‘real business people’ make decisions quickly and decisively – data and discussion is for wimps.
• It takes too long or it’s too difficult to get the data or reports needed. When people aren’t able to get what they need easily, they’ll often choose to go without.
• The data isn’t trusted. Sometimes we find, hidden behind a reluctance to use data, an unspoken understanding that the data isn’t up-to-date or accurate.
• A lack of skills. Aside from business school graduates, when was the last time you heard of someone taking ‘data and decisions’ training? The assumption is that managers know this stuff – yet most managers would benefit from training in understanding, analysing and acting on data.
• A dominant personality over-riding all other concerns. Fixing all of the above will have no impact if there’s a power-wielding personality in the room determined to have their way no matter what the data says.

Of course, sometimes good decisions lead to bad outcomes and bad decisions lead to good outcomes. But a good decision is more likely to lead to a good outcome than a bad decision. And if I was investing my own money I’d be looking, every time, for the company that paid attention to the decision-making process.