Sometimes we wish, that the world is simple and easy. That we can evaluate a situation with our senses and are able to judge a situation. That’s what may happen a thousand times a day intuitively and it makes us believe that we can make right and sound decisions.
But what is right for us is not necessarily right for a group of people and also not for a company, respectively. The truth is, that what may be beneficial for us and our decision making process, is not necessarily good for a group. Our subjective view may misguide the group.
In order to make the best decision for a group (company), decisions have to be objective and take into consideration a lot more factors than “only” the views of one person. You have to evaluate many interdependent parts which interact with each other in multiple ways.
one measure – one disaster.
Trying to measure the success of a group with one KPI will not lead to a fair, motivational decision. It will lead to an oversimplified judgement of a situation and to shortsighted conculsions.
So, the question is: What can be done in order to improve a decision making process of a group:
- Use as many data sources as you have (big data, data lake)
- Use external data and research data – to bring the external view in the decision making process
- Find patterns relevant for your group or company – the patterns are different for all companies (you can’t guide companies with the same five KPI).
- Look at trends and personal feedback – build a story around the data
- Use IT extensively to measure and analyse data.
- Do not measure the KPI in a traditional financial form – the new KPI is explained in multidimensional ways.
- Automated processes are welcome, but be aware, that for an holistic picture you need good human analysts.
With today’s tools you can evaluate complexity much better than years ago. It’s possible to make better decisions in a more sophisticated world.
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