A recent report from Deloitte notes that organizations that can assess their decision-making skills and strategies might have an advantage in competitive markets.
In short, making good decisions is essential for organizations to be successful. However, decision-making can be difficult. This is especially true when there is a lot at stake. That’s why it’s important for business owners and C-suite executives to develop their decision intelligence.
Decision intelligence is the ability to make sound decisions under pressure and amid uncertainty. Organizations that have employees with high decision intelligence are more successful than those that don’t.
Why? We'll get into that in a bit.
Know that if you want your organization to thrive, you need to focus on developing decision intelligence. Here’s why it’s so important along with how to cultivate the skill.
What Is Decision Intelligence?
In a broad sense, decision intelligence can be defined as the ability to make effective and efficient decisions. Those with high levels of decision intelligence use both logical and creative thinking.
1. Gathering and analyzing data
2. Generating options and alternatives
3. Evaluating outcomes
4. Weighing potential risks and benefits
However, this type of intelligence is about more than being good at making decisions. It also requires strong communication skills. You have to know how to communicate decisions to others.
This is why decision intelligence is a critical skill for anyone in leadership positions. How can you do this? Developing decision intelligence involves not only technical skills, such as data analysis.
It also requires you to strengthen your ability to think critically. For example, you need to be able to creatively solve problems and make sound judgments.
After all, business changes rapidly. Deals fall through and clients and providers change their minds. Successful businesses know how to navigate these changes. They have leaders in place who can make quick, informed decisions about those changes.
Simply put, the higher level of your organization's decision intelligence, the better equipped it is. To do what? To navigate a constantly changing business landscape.
The Importance of Good Decision-Making Skills in Business
Every choice can have an impact on the success of a company. This is why the most successful businesses are those that have strong leaders who can:
1. Analyze situations
2. Weigh options
3. Make decisions that will benefit their organization
The ability to make quick informed decisions is critical in business. It can be the difference between losing out on a potential opportunity or closing a big deal.
And, we’re not talking about helping your CTO or COO improve their decision-making abilities. These skills are critical for all employees. Good decision-making skills across all ranks contribute to a more efficient workplace.
How so? An optimized decision-making process helps reduce bottlenecks.
It also makes it easier for people to spend less time figuring out how to make decisions. Instead, they spend more time focusing on measuring the outcomes of those decisions.
Decision Intelligence Leads to Company Intelligence
We’ve touched on this above. However, we’re so passionate about this aspect of business analytics that it’s important to dive in a bit deeper.
In short, decision intelligence can improve the intelligence of your company. What do we mean by that?
When it comes to decision-making, data can only take a company so far. To succeed, decision-makers must also have the ability to analyze, interpret, and apply that data efficiently.
This is where decision intelligence comes in. Decision intelligence helps to enhance a company's intelligence. It does so by helping you understand patterns.
This type of intelligence allows you to make use of informed decision-making techniques to understand trends. This opens up the stage for:
1. Smarter startegies
2. Better forecasting
3. Improved problem-solving skills
In today's highly competitive business world, decision intelligence is essential for remaining successful. It is what ensures you stay ahead of the competition. As more companies adopt decision intelligence tactics, it has become clear that those who lack this crucial skill will fall behind.
How to Improve Decision-Making Skills
Are you convinced of the importance of decision intelligence yet? If so, then you might be wondering how to improve your decision-making skills. There are a few things you can do to learn how to make decisions that make an impact.
Set Strategic Goals
Most people fail to make great decisions. They fail because they're not sure what those decisions are leading them to. This is why setting strategic goals is an important first step.
Without clear goals, it can be difficult to determine the best way to divide resources and set priorities. Goals also provide a roadmap for success. This allows the company to track progress and adjust as needed.
In addition, having specific goals can help to motivate employees. Goals keep them focused on the mission of the company.
Without setting strategic goals, a business may struggle to achieve long-term success. This makes it difficult for any business to reach its full potential.
Therefore, taking the time to set clear and achievable goals can benefit a business in its decision-making process.
Determine Decisions That Matter
After you’ve set goals, focus your attention on decisions that matter. As an executive, it's important to understand the difference between business decisions. Which ones matter and which can you delegate or outsource?
By focusing on high-impact decisions, you can save time and energy for more pressing matters. Not only will this free up time for yourself, but it allows others on your team to prove their competence and take ownership of tasks.
It's also important to consider the business strategy. Delegating certain tasks may not mean they are unimportant. It could mean they have a lower priority than other goals and objectives.
Develop Workflows for Decision-Making
Once you and your team understand how to make better decisions, it’s all about automating that process. This is when you can start to focus on developing workflows for decision-making within a business or organization.
Workflows streamline the decision-making process. This ensures that all necessary steps are being taken.
They also promote clear communication. With a workflow, each team member knows their specific role in the decision-making process. They also provide you with the ability to track decisions and their outcomes.
Overall, creating workflows for decision-making can improve the effectiveness of decision intelligence.
Focus on Collecting Data
Finally, one of the most important things to remember is the value of collecting data. This can come in the form of market research, surveys, or customer feedback.
By gathering information from different sources, you increase your insight into the situation. When you understand that situation better, you make more informed decisions.
Without data, you are simply making choices based on assumptions and personal opinions.
In addition, having complex data to back up your choices can also help you communicate effectively. This comes in handy when speaking to stakeholders and investors.
Ultimately, taking the time to collect and analyze information can lead to better results for a business. With the help of AI tools and business analytics, this is easier than ever.
How Business Analytics Helps Improve Decision Intelligence
Business analytics uses data and analytical techniques to drive better business decisions. How does it improve decision intelligence?
Namely, it helps you gather and organize large amounts of data in a structured way. This provides you with a comprehensive view of past performance and current trends.
Additionally, it allows for analysis and modeling with data. This can help you identify patterns and predict future outcomes. You can then use these insights and predictions as the basis of informed decision-making.
As we’ve mentioned, informed decision-making is the real foundation of decision intelligence.
In short, business analytics helps improve decision intelligence by:
1. Organizing information
2. Analyzing patterns
3. Offering actionable insights
As more companies embrace the power of data-driven decision-making, the importance of business analytics continues to grow.
AI-Informed Decision-Making Is the Future of Business
AI-informed decision-making is becoming the new norm in the business world.
By collecting and analyzing large amounts of data (as our virtual advisor crystal does), AI can help companies make informed decisions. It helps with everything from marketing strategies to product development.
AI can also assist in:
1. Predicting customer behaviour
2. Allowing businesses to tailor their offerings to meet specific needs and desires
Embracing AI-informed decision-making now will give companies an advantage in a rapidly changing marketplace.
In the future, AI may even become essential for businesses to stay competitive. It may also become a core component of decision intelligence.
Despite what happens in the future, we know what’s true now in the present. As AI technology continues to advance, companies need to adopt AI-informed decision-making.
They need to learn how to integrate business analytics and data into their long-term planning strategies. It could be the difference between a successful organization and one that struggles.
The possibilities are endless. The future belongs to those who embrace AI technology in their decision-making process.
Get a Virtual Advisor for Data Intelligence
Are you ready to learn how to improve your organization’s decision intelligence? Our virtual advisor can help you do that.
Through augmented analytics powered by AI and machine learning, you can understand data better than ever. You'll have the ability to gain insight at a moment’s notice. This provides you with everything you need to make informed, high-impact decisions.
Book a demo to see how impactful our business analytics tool is.