(Expansion) – The decision-making process is one of the most fascinating topics in business administration. In the speed of business in the contemporary world, both in the electrifying payment industry and in other sectors of the economy, speed, agility and speed in decision-making tend to be privileged.
In innovation processes, the philosophy of “get wrong, but get wrong quickly ” (known as “fail fast”), is an invitation to experimentation in the field of action, correcting the course with adjustments on the fly.
One of the keys to success is determining what the criteria are for making decisions. It is important to achieve a balance between the experience and the use of information that information technologies, big data and even artificial intelligence allow. At the same time, combat individualism in final decisions, to leverage collective knowledge, the result of diverse and complementary perspectives, and adequately informed.
Experience is very important, but sometimes the past is not our best friend. The accumulated experience, individual and group, creates a common past for the organization. We must avoid the temptation to take refuge in decisions or premises that were successful and correct in the past, but which may no longer be valid in the current context.
We must be constantly open to challenging our experience with information and analysis. Ask and re-ask the questions that can give us key answers to our hypotheses, with the power of current data processing and analysis, to understand the behaviors and trends of the factors that can influence business decisions.
The variety of information sources and diverse individual perspectives within the organization enrich and enhance the process for asking, reviewing, and answering questions that contribute to planning.
When we talk about macro strategies, the main plans of our company, the focus should be on clearly understanding the current conditions of the context and the behavior of management indicators, and their evolution scenarios. The information should help us update and deepen our knowledge of market conditions and trends, competitive dynamics and the behavior of ecosystem players, which together are essential to understand the framework of the decisions that we must make.
If we consider short and medium-term strategies, for example the development of new products, solutions or innovations, the need to shorten planning and start-up times is greater. To begin, it is essential to properly identify the problem to be solved, the opportunity given by an unexplored space or by unmet consumer needs, whether in large groups or market niches. Then, with the power of consumer-centric design techniques, co-creations, and collaborations with business partners, it’s time to develop the solutions to those challenges.
We are usually consulted by other industries about the formula that we follow, given that in the payment technology sector the way in which consumers make payments and transfers with each other has been transformed, and the way in which micro, small, medium and large businesses receive and make payments. From contactless payments to instant transfers to international commerce, the industry continues to evolve rapidly with innovations, while preserving and enhancing expectations that payments will be fast, secure and convenient.
The transformation begins with the same work team; with the right talent and the incentives aligned so that the entire organization is willing to offer their opinion, and work together on a solution. Even considering that experience is important in decision making, but must be questioned and challenged, using business intelligence resources, we must know how to manage the information analysis processes.
The balance is in using the power of information technology and intelligence applied to business without prolonging the analysis periods to a point where the proper timing of proof of concepts is lost.
We must predefine the deadline to make decisions. Each company and sector develops its own algorithm. The quest is the balance between speed to plan and act fast, continue to lead transformation, and manage risk appropriately. Take advantage of what we can know and predict “in the lab”, but be ready to start exploring solutions, innovations and strategies in the field, adapting on the fly in the real world.
The role of leaders is simple on paper, but complex in reality: capitalize on individual and organizational experience, but avoid clouding openness to questioning. To challenge the experience with information, they must choose their questions and areas of information deepening, surround themselves with people with a high level of curiosity and skill in data analysis, as well as focus on the key hypotheses and the validation of the most relevant hypotheses. before going out to the field.
There are two extremes to avoid: believing only in experience or trying to review all possible hypotheses. Away from these extremes, leaders must ask questions that focus on relevant decision dimensions and be ready to take risks, testing solutions and innovations in the market, to match the consumer experience.
Editor’s Note: Eduardo Coello is president of Visa for Latin America and the Caribbean. Follow him on. The opinions published in this column belong exclusively to the author.
