Survey shows lack of data affects corporate decisions
September 26, 2007
by FoodBusinessNews.net Staff
NEW YORK ― Less than 1 in 10 corporate executives believe they have the necessary information when they need it to make critical business decisions. So reports a survey from Business Objects that analyzes the current status of corporate decision-making.
The survey of 154 global executives, conducted by the Economist Intelligence Unit and commissioned by Business Objects, also found that more than half of the senior executives are concerned that as a result of missing information, they may be making poor decisions, and a quarter believe management frequently or always gets its decisions wrong.
"These are sobering statistics," said John Schwarz, chief executive officer of Business Objects. "We are talking about business decisions that can cost an organization millions of dollars, either through costly errors or through the failure to grasp a competitive advantage."
Despite 8-out-of-10 respondents indicating data is the most important factor in making decisions, ranking it much higher than the opinion of others, personal intuition, or external consultancy, the research showed more than half of respondents said decision-making in their organizations was largely informal and ad hoc.
"The simple fact is that executive decision-makers are not getting the data they value and need, and are being forced into making decisions on ‘gut instinct’," Mr. Schwarz said. "At a time when the economists are predicting that the current credit squeeze is likely to impact the business environment, it is important to wring out every advantage amidst intense and global competitive pressures. Executives must demand clarity from their organizations to ensure their decisions can and will deliver the results their investors are seeking."