CIMA outlines contributors to bad decision making in business

CIMA outlines contributors to bad decision making in business

Information overload, excessive bureaucracy, lack of trust and incentives that aren’t aligned with goals cited as contributors to poor decision making

AROUND three quarters of executives have admitted to making at least one strategic initiative failing in the last three years as a result of flaws in their decision making process, according to CIMA.

Research from the UK institute and the American Institute of CPAs (AICPA found that information overload, excessive bureaucracy, lack of trust and incentives that aren’t aligned with goals were all cited as contributors to poor decision making in businesses globally.

The report, which surveyed board-level executives at large organisations from 16 countries, found more than three quarters of executives say flawed information has been used to make strategic decisions, with 42% admit their organisation lost a competitive advantage because they were slow to make decisions.

Charles Tilley, chief executive of CIMA commented: “Bad decisions make for bad business, so these findings are a cause for great concern. Organisations need to treat decision-making as a business-critical process to be professionalised then continually improved.

“Above all, leaders need to think in an integrated way. This means having a clear and defined business model and relating all decisions back to it; quickly gathering and analysing all relevant information from all parts of the business; and focusing on key performance indicators rather than gut instinct or hearsay.”

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource