Fact based decision making is a process with orderly steps to be followed which lays strain on gathering the right information, strive for best quality of data, conducting unbiased analysis to extract basic insights, identifying and analysing pros and cons of the possible decisions and select that decisions which are supported by strong analysis rather than doing speculations and guesswork.

All the decisions which are extracted from meaningful data and are based on true facts, correct in numeric values, augment our ability to assess the conditions, deploy actions and bring enhancement in efficiency. When a business is working on information based on the facts then one can calculate business requirements, gaps, level of risk and subsequent success of factors.

The optimum method to make decisions on the basis of facts and fiction duly have a process to be followed which includes:

• Perceive the situation and recognize the cause of the problem- There emerges a need to prepare and extract factual information about a business problem or opportunity. Observe the condition or the problem with as much objectivity as possible. All bias and supposition should be put all aside and make a fair examination and decision with respect to a problem solution. All emotional aspects need to be kept aside where our duty as a human is to add your values to enhance other people’s experience.

• Gathering empirical data- collection of facts with respect to numbers and recording it without any interpretations stays relevant. As our only motive is to consider the factual and required data while discarding the rest. If this process of data collection is perceived to be done through interviews than one must make sure that all the answers given should project facts and numbers significantly.

• Evaluation of factual based data– There is a need to evaluate and access data and numbers with an open mind. One need to identify the decision base to be used for analysis, thus there appears various alternative courses of action which even puts impact upon all stakeholders. This evaluation process brings snow and waves.

• What stays best for business decisions – The only thing that should sustain in one’s mind is to increase and evaluate one’s mission statement along with the company’s value. The main core activities of the business should be the ultimate focus rather than emotions clouding the decision making.

Advantages of fact based decision making:

To deploy actions into the right direction by analyzing it on the basis of true facts and figures to improve efficiency .

• Improves capacity to evaluate- whenever an information is worked and analyzed upon on the basis of facts and true values helps one to identify the risks, gaps and critical success story which helps to choose among alternative courses of actions and evaluate which decisions best align and suit organization objectives and strategies.

While decisions based facts and figures can be documented, which is further validated, utilized to align an organization’s objective and strategies and even helps to create a business case which would assist in buying from stakeholders.

• Enables to proceed with actions immediately – if the decisions are made and evaluated based on figures then there emerges less chances of interpretations. The gateway to successful implementation would open up if decisions are made on the basis of facts. But if the decisions are based on assumptions then even the analysis done wouldn’t help but If data becoming over-analyzed at a point would let it move in any direction.

• Brings efficiency in decision making– facts and figures helps one analyze different situations and problems with risk factors and much dependency thus one needs to prepare a backup plan also to skip away all the contingent and unpredictable situations. This concept is based on how to measure growth and success of the company and set further goals and missions and further delegate responsibilities to the subordinates.

• Reflecting effectiveness of past decisions- this approach brings an ability to reflect effectiveness of past decision making so done with respect to factual data and information so referred. It enhances the ability to review, challenge and alter opinions and decisions.

To facilitate an effective decision making one needs to

Firstly, gather all the data which is relevant enough to plan the things ahead and take decisions for problems with respect to resolving it immediately, where there is a need to identify the stakeholders, scope and root cause of the problem.

Secondly, one must invest much time in making effective decisions that will help achieve not only short term but also long term objectives. Draw conclusions on the basis of actual data which will help a firm to

make productive decisions in a much faster way. Thirdly, one need to be prepared to make rough and tough decisions with respect to modification

 

 

Conclusion – Delivering better business performance can be done on the basis of fact- based decision making. Fact-based data analytics helps in boosting revenue growth prospects.