The Decision Economy
Around one fifth of leaders in businesses with 50–99 employees said their most recent major decision rested primarily on instinct or the judgement of a senior individual, compared with 14% in the largest firms. This can accelerate decisions in familiar territory, but carries greater risk where firms are moving into new markets or adopting unfamiliar technologies. Several other factors repeatedly slow decisions; uncertainty and perceived risk around options, the time needed to gather information, competing operational priorities and multi-layered approval processes. In practice, many mid-tier firms find themselves caught between two models. They no longer operate with the speed of a small firm, but they have not yet realised the benefits of scale in the form of faster, more confident decision systems. Smaller mid-tier firms rely more heavily on experience and judgement. WHEN SCALE SLOWS SPEED
Factors Influencing the Speed and Quality of Decision-Making We asked mid‑tier leaders which factors most influence the speed and quality of decision‑making in their organisations, and what most often holds them back.
Enhancing Factors
Affecting Factors
Clearer signals from Government regarding future policies or decisions
Risks or uncertainties associated with options
29%
24%
Time required to gather info needed to assess options
Improved data/evidence gathering and analysis
22%
29%
Faster decision-making from providers of business finance
27%
Competing business priorities
19%
Time needed to appraise options in detail
More accurate forecasts regarding customer markets
25%
17%
Access to the right management talent
The internal decision approval process
25%
11%
Gaps in information or data needed to assess options
7%
22%
Other
13
Made with FlippingBook - professional solution for displaying marketing and sales documents online