Does intution have a place in business decision making?

I’ve always been someone to lean into making decisions from a gut feeling, why is it there if we’re not going to use it to our advantage.

Our intuition has been shaped by years of experience and exposure to various situations, rooted deep in our subconscious. Surely it should have a role to play in how we make decisions in business?

Some would say yes however this is not the case for everyone, people actively choose to avoid listening to their intuition and focus on data to support their decisions. This ensures their decisions are based on logic and not some woo woo gut feeling. 

Although the business world champions logic, analytics and data driven strategies, there is a curiosity of what role intuition can play; resulting in an ongoing debate on whether it should be embraced. 

Personally I can see it from both sides. I believe there is a sweet spot where data meets intuition, it’s the balance you’ve got to get right. 

So let’s explore whether gut feelings and instincts can coexist with charts, graphs, and market analysis in the boardroom.

THE POWER OF INTUITION 

In business, where split second decisions can make or break opportunities, leaning into your gut feeling can act as a swift and decisive guide. 

Entrepreneurs and leaders often recount stories of trusting their gut feelings leading to successful ventures, strategic partnerships and innovative solutions. 

Successful entrepreneurs and business leaders credit part of their success to intuitive decision making. Steve Jobs emphasised the importance of intuition in navigating uncharted waters of innovation while Elon Musk has often spoken about trusting his instincts in critical business decisions.

QUESTIONING THE PRACTICALITY 

I’m definitely one from taking into account both sides, it can be argued that business decisions should be grounded in hard data, through analysis and measurable outcomes. 

If you rely solely on intuition it opens the doors to subjective biases, personal opinions and an increased likelihood of making decisions based on emotions rather than logic. 

If we are holding people accountable to metrics and KPI’s how does one review intuition? 

HOW YOU CAN FIND THE SWEET SPOT 

There is definitely a sweet spot but we just have to get the balance right. 

We need to take a holistic approach that leverages both aspects, let’s work through some strategies that can help you strike the right balance. 

Know your context 

Understand the context of the decision you're making. In situations where time is crucial, intuition might take the lead. For long-term strategic decisions, incorporating data analysis becomes paramount.

Data informed intuition 

Let data inform your intuition. Use data as a tool to validate or challenge your gut feelings. This hybrid approach ensures a more well-rounded decision-making process. No 

Create a decision making framework

Develop a framework that combines both intuitive and data-driven elements. Define when to rely on intuition and when to turn to data, creating a structured approach to decision-making. 

Seek diverse perspectives

Surround yourself with a diverse team. Collaborating with individuals who bring different perspectives can enhance both the intuitive and data-driven aspects of decision-making

THE TAKEAWAY 

While we may not have a fixed formula on how to apply intuition into business decision making, I personally believe it certainly has a place. 

We need to be able to recognise when we should listen to that inner voice and when to lean on the data at our disposal. 

Like anything there will be times where the wrong decision is made but it will be in the lessons that you will refine how you strike the balance between intuition led and data led decision making. 

The sweet spot lies in understanding the nuanced dance between gut feelings and hard facts, ensuring that decisions are not only swift but also grounded in a strategic vision for long-term success.

So does intuition have a place in business decision making? I'll let you refer to your gut on this one. 

I help individuals and leaders transform decision making into a strategic advantage through finding the sweet spot between intuition and data led decision making. 

The Thrive & Grow Project offers one on one coaching, group coaching and online courses. Book a free discovery call to explore options that may suit your needs.