The value placed on data by firms has grown rapidly. According to new research by Dynamic Markets, for example, one in five of the UK’s largest companies now quantify the value of corporate data on their balance sheets. However, the research shows that significant challenges remain:
- 37% of respondents said their managers relied on ‘gut feeling’ rather than data to make decisions.
- 44% think their organisations have little or no transparency in how key decisions are made.
- 25% have no formal decision-making processes. (BBC, 19th October 2012)
Management is all about decision making and management accountants play a vital role in providing the crucial evidence that helps managers to make the right decisions. CIMA, the Chartered Institute of Management Accountants, is the world’s leading professional body of management accountants. Its training helps management accountants to analyse and interpret hard information, generate alternative solutions and match these to the larger strategy of a business.
Decision-making is the essence of management, shaping company strategy and affecting company resources. However, managers are finding they must make high-pressure decisions faster. 74% of the global executives surveyed for the Harvard Business Review stated they ‘feel under pressure to achieve results in less time than ever before’.
As companies compete globally and technological change accelerates, businesses need to instil a culture of data-driven decisions, supported by the people, processes and technology to ensure success. Managers see that making the right decision in a timely manner is a matter of balancing data analysis with judgment and experience, not exclusively relying on one method over the other.
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