When decisions are based on opinions, the results can be disastrous, with wide-scale impacts from customer satisfaction to operational efficiency. In effect, decisions play a vital role in determining quality outputs and levels of organizational excellence.
Evidence-based decision-making is not just a cornerstone of quality management, it is a proven driver of success. In fact, research consistently shows that organizations that make data-driven decisions are more likely to be profitable than those relying on intuition or opinion alone. (McKinsey Global Institute (2016) - The Age of Analytics: Competing in a Data-Driven World. McKinsey & Company).
The ability to leverage evidence actually allows organizations to accurately diagnose issues, implement targeted solutions, and measure outcomes that can foster and drive continuous improvement.
Three (3) Facts about Opinion-Based Decision-Making
1. Opinion-based decisions are inherently subjective.
They vary depending on the individual's perspective, mood, or experience, leading to inconsistent results. Managers who solely manage by opinion and instinct will likely encounter more challenges managing.
2. Opinion-based decisions are often confronted with higher levels of resistance.
Employees are more likely to trust and support decisions when they are based on facts. Organizations relying on subjective decision-making processes often face higher levels of internal resistance compared to data-driven firms. Evidence-based decisions, by contrast, offer a more impartial foundation for change while reducing resistance and fostering buy-in.
3. Opinion-based decisions are more prone to error
Opinion-based decisions are more prone to error and can result in waste, the need for rework, inefficiencies, and financial losses. Consider, for example, a company launching a new product based on a leader's assumption about market demand and customer preferences, only to find there was no genuine consumer interest or that the product did not meet customer specifications. The resulting financial loss and reputational damage could have been avoided with proper market research, data analysis and the leveraging of predictive analytics.
A Key Take-Away
Good managers manage with evidence, not opinions. Evidence provides a clear, objective basis for decisions. When managers use data to track performance, identify trends, or anticipate risks, they are better positioned to make more accurate forecasts and decisions that translate into better strategies, higher-quality outputs and better resource management.
Quality management is not a guessing game. Evidence, not opinions, paves the path to excellence.
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