Decision-making is one of the most important objects in the entrepreneurs’ or executives’ work. It should be fast, profitable and rational, the most logical choice from among of other available options. Otherwise wrong choice can destroy the whole business or even your career. But what are people using to take decisions? Sometimes businesspeople are doing researches, collecting information. I agree that it is the most rational way, although it takes a lot of time and, as we know time is money, furthermore it decreases the profitability.
Usually decision makers are using the intuition. I totally understand business intuition could sounds like it may be contradictory, but the first rapid instinct can bring the effective solution to the problem. I chose the success business story of Facebook. I think the CEO of Facebook Mark Zuckerberg is the good example of using intuition in business world. Young students Mark Zuckerburg, Eduardo Saverin, Dustin Moskovitz and Chris Hughes founded the company in 2004.
Everything started with a little project/program in university community that allowed for students to select the best looking people from a assortment of photos and that was named as Facemash. However that was cancelled due to damage of universities server. This project came with the intuition that it could work not only in the university community, but also in the bigger society and that’s how was created the nowadays Facebook. He was the decision maker, he was fast and focused on strategy, and he did not give up. And the choice was 100 percent correct.
Intuition in the decision-making Mark Zuckerburg used, as the tool about which he clearly believed and knew. What he was going to do and what is the aim of his business and did everything right on the right moment. He did not care that some evidences seemed conflicting however he was still keeping his intuition. His strong inner voice was saying it is right choice. So this sense of business intuition led him to hold this idea as the best option to gain his desirable result. The second success story came from Lithuania.
It would be about company GetJar. It is the largest independent app store, with over 2. 5 billion app downloads to date, which has 30 million monthly users who download 100 million apps every month. This company was created by Ilja Laurs in the same year as Facebook – 2004. Ilja Laurs is not evemore the CEO of this successful company he pass his role to Chris Dury. Everything started when all the mobile applications were not that popular as these days. He was the man who believed that apps’ business could bring the huge profit and enormous success.
As he was asked during interview “What would you say was the hardest part of starting the business? ” he answered that “The most difficult part is to start, after a while you build experience, clientele, get to know your domain”. I think that the meaning behind this sentence is that the experience brings you the right intuition in decision-making strategy. He set the strategy that was in one way with the truth of intuition. No one can guess what kind of knowledge and nuances you gain after working experience.
This improvement of intuition helped Ilja Laurs to stay in the marked and focused on strategy which led to a critical factor to the business success. However business sometimes faces the hidden traps in decision-making process. One of them like confirming evidence can find in the GetJar case. The CEO Chris Dury was hired by the company 3 years ago to replace Ilja Laurs. But Ilja Laurs has been still working closely with GetJar. So Chris Dury usually consulting Ijla Laurs for seeking information that supports his existing point of view.
Chris are still responsible for the decision making, but he has opportunity to get different opinions and evaluate, but sometimes there is possibility of wrong decision making of bias case. In the Facebook case we can see the sunk-cost trap. After the publishing IPO everyone started to talk that it is Facebook failure in the business. They were thinking that it will be the victory of publishing shares because of past success stories of other big companies, but the truth was quite different. So not always the past decision or past experiences could come with achievements.
But we have to remember that even the best manager/ executives or entrepreneurs are making mistakes. To sum up everything, I believe that nowadays business is not impossible without intuition. In a study of 13,000 business executives by Harvard researcher Jagdish Parikh, the executives credited 80 percent of their business success to relying on their intuition. So it brings that intuition is essential in the business world and it is perfectly improve the statement of importance of intuition. Of course there is possibility of hidden traps of decision–making, but there is possibility of avoiding them.