KUALA LUMPUR, Malaysia, Feb. 15, 2016 /PRNewswire/ -- Senior leaders are struggling to make the right decisions, with 72% of organisations admitting to at least one strategic initiative failing in the last three years because of flaws in their decision making process, according to a research from the Chartered Institute of Management Accountants (CIMA) and the American Institute of CPAs (AICPA). Information overload, excessive bureaucracy, lack of trust and incentives that are not aligned with goals were all cited as contributors to poor decision making in businesses globally.
The 'Joining the Dots: Decision making for a new era' report surveyed board-level executives at large organisations from 16 countries. It revealed that not only do executives admit to poor decision making, more than three quarters (80%) say flawed information has been used to make strategic decisions, with 42% admitting their organisation has lost competitive advantage because of slow decision making.
The top causes of poor decision making identified in the report are:
Charles Tilley, Chief Executive of CIMA, commented: "Organisations need to treat decision making as a business-critical process to be professionalised then continually improved. Leaders need to think in an integrated way, meaning to have a clear and defined business model and relate all decisions back to it; quickly gather and analyze all relevant information from all parts of the business; and focus on key performance indicators rather than gut instincts or hearsay."
Siew Lian
+6012-5023-985
chan.siewlian@cimaglobal.com