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Trusting Your Gut: How Executives Use Intuition to Make Better Decisions

In the realm of business, particularly at the executive level, decision-making can make or break a company. While data and analytics have their place, the role of intuition in business decisions—especially high-stakes ones—is pivotal and often underappreciated. This piece explores how seasoned leaders trust and develop their gut feelings, the implications of intuitive decision-making across different industries and cultures, and provides practical suggestions for enhancing this critical skill.

Intuition, often referred to as a ‘gut feeling’, is a psychological process where past experiences, environmental cues, and subconscious information guide decisions without the decision-maker being fully aware of the reasoning behind them. We should keep in mind that this ‘gut-feeling’ is not imaginary. It comes from two important sources: a) our ancestral-script, the coded responses for human survival embedded in our DNA and b) our life-script based on what has kept us safe and well in our personal life up to this point. This form of quick, non-linear thinking can be especially useful in complex decision-making scenarios where time is limited and data may be incomplete.

Many successful leaders credit their intuitive abilities as a key component of their success. Steve Jobs, for example, was known for his uncanny ability to foresee market trends and consumer needs—often going against current data—to make product decisions that would ultimately redefine consumer technology. His intuition led to revolutionary products such as the iPhone and iPad, which were initially perceived as risky ventures.

The development of intuition can significantly vary between industries and cultures. In industries like technology and fashion, where trends can change rapidly, intuition plays a larger role. Leaders need to anticipate market shifts with scant available data. Alternatively, in more stable industries like manufacturing, decisions might rely more heavily on analytics and historical data.

Cultural factors also influence the reliance on intuitive decision-making. According to Geert Hofstede’s cultural dimensions theory, cultures with a high Uncertainty Avoidance Index (UAI) tend to rely less on intuition compared to cultures with a low UAI. For example, executives in Japan (high UAI) are likely to base decisions on rigorous data analysis and risk assessments, while American executives (lower UAI) might be more comfortable trusting their instincts.

To hone intuitive skills, upcoming executives are encouraged to engage in practices such as reflective journaling, meditative thinking, and scenario planning. These activities help refine one’s ability to subconsciously connect dots and recognize patterns without deliberate thinking. Additionally, fostering a diverse work environment can enhance intuitive decision-making by exposing leaders to a wide range of perspectives and thought processes, thereby enriching their cognitive framework.

Today’s technology can support but should not overshadow the intuitive process. Tools like AI and big data analytics can provide executives with insights and predictive analytics, but the final decision often needs a human touch—something that technology is not fully capable of replicating.

In conclusion, while it may seem nebulous or unscientific, intuition is a formidable asset in leadership. By trusting their gut, embracing cultural and industrial differences, and continuously seeking personal development, executives can enhance their decision-making framework significantly. Balancing intuition with rational analysis allows for well-rounded and effective leadership, capable of making decisions that are not just data-driven but also inherently human

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