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Decision Making and Business Performance

Eric J. Bolland and Carlos J. Lopes

This breakthrough study examines how business decisions explain successful and unsuccessful performance. Real world and academic research is evaluated, including interviews and cases studies, to create a model of how decisions and performance are connected for businesses of all sizes. Recommendations are made to optimize decision making and projections about the future of decision making and performance are provided.
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Chapter 6: Detailed findings and analysis

Eric J. Bolland and Carlos J. Lopes

Extract

The impact of a firm’s prior performance is not significant as a performance factor. Weak relationship on commitment to ethics. No relation between positive outcomes and innovation or sharing resources. Strong relationship between team effectiveness. Employee satisfaction is a reason for better performance as is human resource management practices. No relationship between level of competition and performance. Data-driven decision making and performance is related but not statistically significant. Decision speed is more likely in unsuccessful performance. Further analysis showed the following factors associated with stronger performance: team effectiveness, resource sharing across units, data-driven decisions, employee satisfaction, board of director’s influence, and CEO autonomy.

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