More than 40% of respondents to the "Business Traction From Better Decision Action" initiative said their companies have "significant" shortcomings when it comes to making decisions. The report was issued by the DecisionROI Institute, a special interest group created by the Business Performance Management Forum. Researchers surveyed more than 300 people, from C-level to VP to manager titles.
An even higher percentage, 70%, said that bad decisions had either a significant, alarming or degrading impact on their company's performance. This negative impact might be caused by the fact that only 26% of these organizations have a decision-making process or policy in place.
"This 'Business Traction' study tells us that many companies are failing to establish sound practices around people, process and technology," said Dave Laverty, chief marketing officer at Cognos and a DecisionROI Advisory Board member. "Cultural, structural and technological issues are hindering the ability for stakeholders to receive clean and consistent data that enables informed decision-making."
The leading root causes of poor decision-making fall primarily in the corporate arena. They are identified as:
- Poorly defined processes and practices
- Unclear corporate vision, mission and goals
- Unwillingness of leaders to take responsibility
- A lack of reliable, timely information
The report also found a large confidence gap between C-level titles and the management team. More than 60% of C-level execs said they are confident in their decision-making capabilities compared to less than 22% for VP/Director/Managers.
The "Business Traction" report, underwritten by Cognos, can be downloaded at: http://www.bpmforum.org/reports_list.htm
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