The modern-day decision-making process

Boards are now making decisions based upon a sat nav methodology instead of using maps.

Traditionally, Boards used annual budgets and long-term strategic documents as a reference point for making decisions.

The risk of increasing uncertainty combined with rise of big data and powerful analytical tools has led to management teams taking more decisions when they need to, rather than strategically planning decisions in advance of them becoming a necessity.

During this video, Patrick Dunne outlines his thoughts on this significant shift in how Boards make decisions.  Patrick chairs board consultancy Boardelta and is a Trustee of the Chartered Management Institute, a Visiting Professor at Cranfield and the Founder of Warwick in Africa.

Boards now use dynamic information at junction points to determine the next step on the journey, rather than consulting the long-term strategic plan.

To make decisions in this way, you need the following things in place:

1. Robust data that can be efficiently analysed from multiple viewpoints;
2. The ability to quickly test assumptions, some of which are clearly evidence-based whilst others will be interpreted; and
3. An agile mindset across your management team to reach and implement quick decisions.

Clearly some decisions require long-term commitment and cannot be easily altered once you are committed to them.  However, many decisions can be made and altered quickly, in response to data trends.

Boards who are able to make the most of this shift will be able to adapt quicker and potential gain an advantage over their competitors.

As with any change in approach, Boards will need to focus on how they can make optimal decisions using this methodology and learn from their mistakes along the way.