How can executives improve the quality of decision-making?
By Jerry Shanahan, partner at Oliver Wight
4 January 2016
The biggest challenge for senior executives is to understand how the decisions they make today will affect the future performance of the business. By improving the quality of their decision making process, the business is more likely to thrive in the future.
The problem is that most decisions are based on current and past performance, which means that decision-making is a reaction to events that have already past and by definition is too late to recover the situation. What’s more, these decisions will have an impact on the future performance of the business, which without a forward view is unpredictable, at best.
There are two things that need to be established to improve the quality of the decision making: 1) A reliable forward view of the business 2) A sense of urgency to make decisions based on analysis of issues which are in the future.
Integrated Business Planning gives executives a forward view of the business over a 24-36 month horizon. Monthly reviews of product, demand and supply based on robust data and with integrated financials, make future performance gaps visible, so decisions can be made today to correct the situation in plenty of time, thus giving the business a better opportunity of a predictable outcome.