At the boardroom level globally, decisions are made by leveraging a plethora of different sources, insights, and data. This is on top of the experiences, instincts, and experiences of those in charge of making these decisions. In the midst of all this is the CEO. In most cases, CEOs pride themselves on being able to read the situation, to sense a shift, and to act, at the precise moment of asking.
However, with the pace of markets evolving by the hour in the modern business environment, competition and all other relevant factors are also evolving in real-time. As a result, strict reliance on instinct alone for leadership is not going to cut it. If anything, it just introduces more risk.
The Problem With “Experience-Driven” Leadership
It’s important to reiterate at this point that experience is, was, and will always be, invaluable. However, it becomes more a nuisance than an asset when used too much as a filter. This problem is further elevated when stoicism of experience is bundled with incomplete information. Information that has already passed through layers of interpretations, bias, and delays. In other words, information they’re relying on to justify their decisions based on experience is more narrative than reflection of the truth.
In this particular scenario, gut instinct would work the best when supported by real-time data. In the absence of such a setting, even the sharpest CEO would be navigating today’s markets with yesterday’s map.
Lean Is Not More With Less
It sounds tempting, “Lean is doing more with less”. And while it may sound like something every organization needs, most organizations interpret it as a euphemism for just cutting back. Real lean thinking is about flow, responsiveness, clarity, and above all, speed in execution. Waster elimination occurring not just in operations but also the decision-making process itself.
A lean organization and leader do not wait for end of the month reports or their quarterly reviews, they demand instant visibility into what’s happening right now. All of it to ensure the capital is being used effectively, performance hindrances mitigated as soon as possible, and identifying where the next big opportunities lie. Through this visibility, they set the pace and foundation for action before concerns become issues.
The Future Is Visibility
Intuition will not lead to the best decisions, or more accurately, intuition alone will not. In other words, it will take the blend of instincts and insight. The result of this combination will be visibility. And the leaders that embrace it will have an organization that is leaner, faster, and allows for better decision-making. All of this, not because they’re simply guessing right, but because they are seeing the right things.
The question has never been about whether instinct has any value, it is how much more valuable it could if complemented with a full picture of how things stand.