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September 13, 2021 4:47 PM
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How to grow your organization using better decisions

How to grow your organization using better decisions | Decision Intelligence News | Scoop.it

The opportunity cost of these poor decisions is massive. In a 2019 Gartner study, the firm found that on average, S&P500 companies can improve EBITDA by as much as 3% (absolute increase by improving decisions). They measured good decisions vs. bad decisions based on exception rates and a few other factors. This is a nearly 30% improvement based on average EBITDA of S&P500 firms, or a $700 billion opportunity in EBITDA expansion for S&P500 companies.

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decision systems of record allow us to go back to previous decisions, track how they did vs. expectations, understand where things went well and most importantly learn and disseminate decision best practices across the organization."

Decision Intelligence's insight:

In four research studies that I'm aware of, only about 20% of organizations report consistent, high-quality decision making. This represents a massive opportunity for improvement; I've found that just a little increase in attention to decision methods, processes, mapping, QA, retention, etc. can go a very long way towards improved outcomes.

 

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Decision Intelligence News
Decision Intelligence (DI) is the discipline concerned with how organizations and individuals design, support, and improve decision making at scale. It connects actions to outcomes in context by integrating human judgment, data, models, text, and AI into coherent decision systems. Decision Intelligence News curates developments across DI and related fields, including AI, machine learning, governance, enterprise architecture, orchestration, measurement, and decision modeling. Learn more at www.opendi.org and www.learn-di.com.
Curated by Decision Intelligence