The art, science (and bewilderment) of advising on business decisions
A few thoughts...
TL;DR. Consultants help clients answer questions where there is no definitive answer. Where logic meets empathy, data pairs with intuition, and rigour tempers vision. An experimental mix of art and science. Quant shaped by Qual. Challenging what companies think they need, and what will actually push them forward. This process can be fast, furious and bewildering. Often driven by the demands of the project itself. Removing some of this shroud is key to helping strategic decisions and changes stick. Empowering rather than enfeebling clients to make better decisions themselves.
Helping clients make complex decisions
We built Discy to empower teams to make complex decisions. So our north star question as consultants and SaaS-builders is always... "will this feature help teams decide better?".
Our view is that consultants can add most value when there isn't a single, definite answer. Those situations where decision-making requires fluency in numbers, logic and emotions. As well as the head-space to weigh up calculated bets, without being loss in analysis.
A luxury, our clients rarely have for several reasons e.g.,
Fuzzy direction from leaders on what is sought.
See-sawing between incremental tweaks or big bets, without clear links.
Being rooted to a view and ignoring inconvenient truths. A.k.a. groupthink, confirmation bias, loss aversion, sunk loss fallacy.
Reacting to the market without evolving the company playbook. E.g., pace of action, resource allocation, incentives.
Whether making operations sustainable, prioritising capital allocation or steering corporate culture... Consultants must showcase this right & left brain bilingualism. Doing so in a way that also helps clients adopt similar practices to answer questions like:
What data and information should I gather to inform my decision? Besides financial statements? What external factors or market conditions to factor?
How do I compile the right market research data?
How best to plan for uncertainty? What heuristics or analytics approaches are most useful?
How best to assess options, without decision paralysis? Pros, cons and potential unintended consequences?
How will this decision affect our customers? Does it align with our company purpose?
What assumptions is my decision based on? What is my gut instinct telling me and why?
How do we reassure ourselves and our leadership we made the right call? What data, KPIs and time horizon should we use to gauge success/impact?
This is no easy feat and in the largest companies, it can be bewildering. .
So What
Despite the billions spent on BI solutions, McKinsey estimated poor decision-making costs Fortune 500 companies $250 million p.a. Despite 40% of leadership spent ‘decisioning’.
Which is a decent prize.
So how do consultants help improve here?
The art & science is to use just enough quant data. Contextualised with the kind of qualitative insights indicated above. To frame choices, assess options, and communicate them in a way that both inspires and informs
"Hearts & minds".
It may be a buzzword phrase, but it's still relevant. Especially as what it entails continues to change in every situation and context.
The other factor is removing the bewilderment. For a decision or change to stick, clients must believe in and want to own the path forward. This means nurturing their internal capacity to make better decisions themselves.
The challenge for many consulting teams, is freeing the time and opportunity to do so.
A decision making guide
Helping clients traverse the landscape towards better decision-making, requires dedication to:
Dig for perspectives. Use interviews to test how the ideas you're exploring impact each stakeholder. I.e., assumptions, motivations and pain-points. Expose the submerged cultural forces, boundaries and political dynamics that influence decisions.
Pressure test assumptions. Use first principles and prior research/ experience to question function. I.e., Do decisions ladder up to strategic relevance, or dated assumptions? Have views on customer needs, competitiveness and innovation moved with the times?
Paint the future. Quantify business outcomes and link to stakeholder stories. Test and understand what makes both rational and emotive sense. Then iterate further, reinvesting new qualitative insights into your narrative.
Highlight tradeoffs. Find experiential ways to layout the risks, unknowns and compromises inherent to complex choices. Help the client see the importance of the process. Stimulate questions and deepen their appreciation of question choices.
Champion discovery. Celebrate insight gathering and learning as much as deliverables. Guide vs. prescribe. Seed ongoing curiosity and candid debate that outlasts a project engagement.
Our ambition is that using Discy, teams can consistently perform the above steps. Delivering clear choices, transferring skills, and lifting the veil of bewilderment.