¶ … beacon of light to a manager lost at sea. The five key points presented in the article transition the management from the old economy to the new economy. The first key point is 'A shift from the quantitative approach to management to a qualitative approach.' The second key point is "Focus on The importance of Strategic Planning to innovation." The third key point is 'Transition from the information worker to the knowledge worker.' The fourth key point is 'Fundamental change in the variables involved in human decision-making.' The fifth key point is 'Changes to Leadership and CEO growth Strategy or from incrementalism to rational ritualism to adaptive decision making.'
Essentially, these key points coordinate a shift in the management science paradigm from a rigorous and objective quantitative data-driven approach to a subjective qualitative approach, where tacit knowledge and intuition is of greater value toward management decision making. Human beings were imbued with great gifts from the creator. Previous management styles inhibited this tremendous gift from enabling decision-making prior to the shift in the decision making paradigm. This shift of paradigm is driven by the importance of strategic planning to spur innovation. Strategic planning imbues the intrinsic nature of the leader to determine the best strategy for the organization.
Certainly, there is data involved that the CEO scans and ingests prior to rendering a decision. However, the decision rendered is independent of any specific data retrieved from the environment and of any information that became of that data. As strategic planning became synonymous with executive level leadership responsibility, the importance of knowledge workers in the organization became paramount and necessary as a replacement to the information worker. The variables that were inputs into the old paradigm of managerial decision-making were of less importance in the new model. This fundamental change in the variables arises from the importance of innovation in today's marketplace. Once reserved for burgeoning high technology and medical devices firms, innovation has pervaded into the strategy of nearly all organizations including in the public sector.
This article has merged two diametrically opposed styles of management into a decision making process that enables managers to use their judgment rather than to respond to a data-driven environment. "If you require managers to use decision-making-under-uncertainty techniques to make actual decisions, they will quickly learn how to think differently about the future." (Bryan, 2009) In light of the Humble Decision Making article, this quote seems to hold its truth.
I have always believed intuition or that 'gut feeling' to drive business decisions. Even academically, the gut response is the first answer, which is generally the correct answer on a multiple guess test. As humans, under the power of our Lord, our first response is to give way to emotion and evoke self doubt regarding the decision. The old adage is, 'go with your gut instinct' and this has stood the test of time for a good reason, it is true. This is the opposite of the quantitative approach of management science, which dictates an analysis of data to calculate a value on which a decision is rendered. "Although skills in the qualitative approach are inherent in the manager and usually increase with experience, the skills of the quantitative approach can be learned only by studying the assumptions and methods of management science." (Anderson, Sweeney, Williams, Martin, 2008)
I feel that quantitative business modeling has utility in business decision making at the production and control level. However, conceptual strategic planning and determining strategic direction is not the best use of business modeling. For example, U.S. Air may decide to use modeling techniques to determine the optimal supply of gas to purchase for an estimated number of planes in a fleet, the number of hours of anticipated operation, and the amount of gas used on a filled plane (weight in range). Modeling this type of problem will...
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