Business decision making failures plague most organizations, trapping executives in analysis paralysis and demanding precise numbers that delay critical decisions. In this episode of "The Elephant in the Boardroom," co-CEOs Terri Long and Jeremy Eden reveal why being "roughly right" delivers better results than being "precisely wrong" in effective business decision making.
You'll discover how flawed decision-making processes paralyze organizations and prevent them from capitalizing on opportunities. Through compelling real-world examples, Terri and Jeremy demonstrate how companies can transform their approach to strategic planning, operational efficiency, and change management by embracing roughly accurate analysis over perfectionist number-crunching.
The episode features powerful insights from John Maynard Keynes' famous principle that "it's better to be roughly right than precisely wrong," showing how this philosophy revolutionizes corporate strategy and employee engagement. You'll learn about stage-gating techniques that help leadership teams prioritize initiatives without getting bogged down in unnecessary details, plus discover how back-of-envelope estimating can quickly filter hundreds of potential projects down to the most promising opportunities.
Terri and Jeremy share fascinating case studies illustrating common decision-making pitfalls, including a manufacturing company where 30 factories stopped generating improvement ideas because of an inappropriately high 55% IRR requirement that was meant for only one facility being sold. This story perfectly demonstrates Mark Twain's observation that "it ain't what you don't know that gets you into trouble, it's what you know for sure that just ain't so."
The hosts also explore how fear of change often blinds executives to the equal or greater risks of maintaining the status quo. They discuss practical change management strategies and share examples of leaders who successfully overcame resistance to transformation, including a utility CEO who turned regulatory constraints into negotiation advantages and a printing company that discovered an engineer's cost-saving innovation that had been hidden in plain sight for years.
One of the most powerful concepts discussed is the former HP CEO's insight: "If only HP knew what HP knows, we'd be three times more productive." This principle underlies everything Harvest Earnings does differently from traditional management consulting. Rather than bringing in external solutions, they help organizations tap into the vast knowledge and expertise that already exists within their workforce but remains underutilized.
The episode includes entertaining anecdotes and quotations that illustrate these principles, from Steven Wright's humorous observation about buying batteries to the practical implications of not getting what you pay for in vendor contracts. These stories reinforce how common-sense approaches to problem-solving often yield extraordinary results when applied systematically.
Whether you're a C-suite executive, middle manager, or team leader, this episode provides actionable frameworks for improving decision-making processes, reducing analysis paralysis, and unlocking the hidden potential within your organization. You'll learn how to create environments where employees feel empowered to share knowledge and propose solutions, leading to measurable improvements in productivity, cost reduction, and operational excellence.
Based on decades of operational excellence experience with Fortune 1000 companies and over $5 billion in client value creation, Terri and Jeremy offer proven strategies for transforming organizational culture and achieving sustainable competitive advantages through better business decision making. #businessdecisionmaking #business #leadership #decisionmaking #businesspodcast #leadershippodcast