Too Few Managers Have the Information Needed to Make Good Decisions

Norman Marks, CRMA, CPA, is a vice president for SAP and has been a chief audit executive and chief risk officer at major global corporations for more than 20 years.

 

The Harvard Business Review has made available, for free, an article from a recent issue: Good Data Won’t Guarantee Good Decisions (PDF).

Ostensibly about the value of data analytics (which is an important message), some important points are made along the way that should be noted and acted on by governance, risk management, compliance, and assurance professionals.

  • Only about 38% of employees and 50% of managers routinely listen to others, balance judgment and analysis, and have the skills to obtain and understand necessary data before they make decisions.
  • Those individuals perform about 24% better than others.
  • Less than 44% of employees even know where to find the information they need for their day-to-day work!

I recommend a read and careful consideration of the points in this piece.

Are your decisions, your team’s decisions, and your most important corporate decisions made with the information necessary?

I welcome your comments and perspectives.

Posted on Jul 26, 2012 by Norman Marks

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  1. This raises an excellent point about companies not relying solely on pumping accurate information into BI and analytics tools to drive business decisions.  Clients my team and I work with are continually trying to automate the monitoring and analysis of business data to drive improved operations. But beyond the technical implementation, we encourage IT to get in the same room as the business operations, CFO and risk management teams – often for the first time. As the HBR study shows, too often people work in their silos, and that can hinder how an entire company performs. In fact, this sharing of information and collaborating across departments is something we’re always working to improve internally. Initially, there is resistance, but no one can argue with the results when there is a higher level of transparency and confidence in the decisions being made.

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