Intuition used to be everything to CEOs; it was the secret weapon of great leadership. If you could instinctively read people, opportunities and markets, you always had the edge. And if you couldn’t, well, you could cover your mistakes with bravado. But today’s businesses need more. The corporate environment is too unstable; there is too much disruption and scrutiny to rely on gut feeling alone. Because even small mistakes can end careers and jeopardise businesses. Data has become the only reliable source of direction.
Intuition can be expensive on many levels
Examples of failed intuition are everywhere in business. Giants, like Nokia, have fallen because they couldn’t see the reason to change. Gut had got them to the top, but in the changing business ecosystem, it is not enough to survive. As George Fisher, one-time CEO of Kodak, put it after a breathtaking slide in market value, “We are out of denial now… We were deluded by our own thinking.” And that is the prevailing problem; when industry leaders trust gut feeling over data, they begin the inevitable slide into irrelevance. Because it is not just a matter of missed opportunity, but of the deeper, more systemic costs that often go unnoticed.
Whether it is capital misallocation, slower responses to disruption, regulatory and compliance risks, or overconfidence bias, the result is the same: a slow descent into insignificance and expense. And that is before your teams start losing confidence in leadership and vision and leave you for more secure positions.
How data can stop that from happening
Intuition still has a role in business, but only when it is backed by data. Because gut instinct can still be right, but it can never be justified if the process doesn’t stand up to scrutiny. With data, you can follow your instincts, but you can verify them first and turn them into defensible strategies. This isn’t just about validation, though; with access to the right data, you can expand your perspective.
Data is only valuable when it is used properly
Predictive models and forecasts can help you anticipate and prepare for change instead of being forced to react to it. You can identify and act on genuine growth drivers through the use of KPIs, dashboards and metrics. While risk assessments and scenario planning help you to test your choices, allowing you to make informed decisions before investment. The greatest difficulty most businesses face is working out how to achieve that.
The tools you need to maximise the potential of data
The business tech market is pretty overwhelming right now. There are tools for everything, which means that it is very easy to onboard an array of disconnected software and platforms that sound good, but actually add to your company’s operational complexity, so a measured approach is needed. By focusing on four key areas, you can avoid that confusion and create an infrastructure to guide your business forward.
• CRM systems: A Customer Relationship Management (CRM) system, like Salesforce or Microsoft Dynamics 365 can provide the backbone for your business, consolidating data, tracking interactions, providing a pipeline overview, and delivering actionable insights. It is your central information hub that can guide informed decision-making.
• Reporting and analytics tools: Dashboards and reporting platforms are another decision-making must, because they transform raw data into clear insights. With solutions like Tableau and Power BI, you can track KPIs in real time, focusing on the areas that need attention.
• Predictive analytics and forecasting tools: The major difference that technology has made for contemporary businesses is the ability to predict and prepare rather than just react. With predictive analytics platforms, such as Salesforce Einstein Analytics, you can take a proactive approach to resource allocation and identify both risks and opportunities. It’s a way to make informed decisions ahead of time.
• Collaboration tools: Once you have your insights, you need to share them. With collaboration tools like Slack or Salesforce Chatter, you can share and action data transparently. Making sure that data is used instead of being siloed and assigning accountability.
Moving on from legacy systems
Data is only valuable when it is used properly. That is the problem that most businesses faced until AI became a true reality. They stored data, endless reams of the stuff, but they could never put it to good use because they simply had too much of it.
When industry leaders trust gut feeling over data, they begin the inevitable slide into irrelevance
And that is why so many businesses now find themselves wading through outdated legacy systems, where data is isolated and unreachable, unable to provide the insights and guidance that CEOs and other leadership members now need. With customer insights on one platform and financial metrics locked within a spreadsheet, there can be no integration and nothing but intuition to rely upon.
By implementing a robust, interconnected tech stack, CEOs can provide themselves with a single source of truth that allows them to support their instincts with verifiable data. Providing their business with the balanced insight and due diligence it needs to thrive.