Influences on Decision Making

The approach taken to making business decisions is influenced by a variety of factors, the key ones of which are outlined below:

Business Objectives / Budgets

• Set the scene for how decisions are made
• A culture of strong budgetary control should encourage more data & evidence-driven decisions

Organisational Structure - Who Makes the Decisions?

• Who has authority to take decisions?
• Are employees to empowered to take decisions to deliver more responsive customer service
• Is decision-making centralised or decentralised?

Attitude to Risk

• Close link to business culture
• Is risk-taking encouraged?
• What are the penalties for poor decisions?

Availability & Reliability of Data

• Is the data available to support a scientific approach?
• Are management comfortable with using scientific methods? Do they have the right skills and experience?

The External Environment

• How fast is the external environment changing?
• Do the uncertainties in the external environment make scientific approaches less reliable?