Data-driven decision making is often viewed as the gold standard in modern management. And this is for good reason. The explosion of available data and rapid advances in data science enable managers to know substantially more about their business. This knowledge, if used well, should bring about better decision-making on about every aspect of the business.
When an Educated Guess Beats Data Analysis
Sometimes it pays to follow your gut.
June 04, 2021
Summary.
Research on data provided by 122 companies in the advertising, digital, publishing, and software sectors (industries characterized by uncertainty over outcomes) suggests that data driven decision-making could be counter-productive under conditions of uncertainty. Heuristics and gut feelings often offered a better tradeoff in terms of decision-making speed and accuracy; the inclusion of analysis in the decision-making process did not bring about any meaningful improvement in accuracy while significantly reducing speed.
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New!
HBR Learning
Decision Making Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Decision Making. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Practical ways to improve your decision-making process.