CHAPTER 5: Why You Have to Stop Listening to Your ‘Golden Gut’, and How to Do It
The early stages of your success - the organic growth that is a precursor to scaling - can be, and usually is, achieved by what is sometimes called 'visceral management', otherwise known as trusting your gut instincts.
In this chapter, we looked at how and why the scale-minded leader needs to learn systems and processes, while not wholly abandoning their experience and judgement.
To access the tools for Chapter 5, simply click the links below to click through the resources.
Chapter 5 Resources
ARTICLE: The 4 Vital Steps From Founder/Owner To CEO
Every founder/owner reaches a point in the development of their business when they begin to feel stretched by the demands of their growing – and hence increasingly complex – organization.
Because of this growing complexity, important decisions can no longer be made on the fly, pure gut instinct is no longer invariably correct, and past indicators of success no longer hold true.
At this point, the founder/owner has two choices: either press ‘pause’ on growth, keeping the business at a manageably simple level – or change the way they manage, reflecting the needs of the newly complex organization.
EXTERNAL RESOURCE: Judgment Calls: Twelve Stories of Big Decisions and the Teams That Got Them Right
Despite the dizzying amount of data at our disposal today—and an increasing reliance on analytics to make the majority of our decisions—many of our most critical choices still come down to human judgment.
This fact is fundamental to organizations whose leaders must often make crucial decisions: to do this they need the best available insights.
This book introduces a model that taps the collective judgment of an organization so that the right decisions are made, and the entire organization profits.
Individually, these stories inspire and instruct; together, they form a model for building an organizational capacity for broadly based, knowledge-intensive decision making.
ARTICLE: PUTTING ANALYTICS TO WORK AT YOUR BUSINESS
If we’re going to make better decisions and take the right actions, we’re going to have to use analytics.
For too long, managers have relied on their intuition or their “golden gut” to make decisions. For too long, important calls have been based not on data, but on the experience and unaided judgment of the decision-maker.
In this article from Babson College, author Tom Davenport suggests that 40 percent of major decisions are based not on facts, but on the manager’s gut.