Decision-Making – “Intuition-based or Fact-based?”
Decision-Making is a vital element for any organization. Ranging from the employees placed in the bottom-level hierarchy to the top brass, many critical decisions are made daily.
So, the question is whether the decisions should be made based on the facts or on the intuitions?
The answer is clear here. Yes, the decisions are often fact-based ones, and they are desirably recommended and followed diligently by any manager or CEO of an organization. Here comes the concept, Generative Thinking Perspective (GTP) and Rational Thinking Perspective (RTP).
As we just proved that the decisions are often fact-based ones and hence RTP approach is the clear winner here. But on the flipside, let us analyse and dig deep into the GTP approach.
The ‘Prospect Theory’ helps us to analyse here. A leader should be risk-loving in some situations rather than being a risk-averse. Even though it is considered unorthodox approach, this critical step leads to the innovation and generates value to the organization. Of course, I respect MECE (Mutually-Exclusive Collectively-Exhaustive) technique a lot. It is the McKinsey way of thinking and it is proved successful because this approach carefully breaks down the problems into discrete and manageable components through the stages of strategic thinking. But GTP approach is highly suitable to take decisions under the complex circumstances.
Hence, a leader may follow GTP approach if the problems in an environment are too complex to handle because intuition sometimes wins a 100-meter sprint.
About the Author: Arjun Ezhil
Arjun Ezhil is a Global MBA student at SP Jain School of Global Management, specialising in IT Management. With close to 4 years of work experience in Finance and Pharmaceutical Industries, he is passionate about learning how Business and Technology complement each other. Arjun has professional expertise in IT Project Management, Business Strategies, and Service Delivery.
