Instincts Versus Institution, Which Works Best in Business

As Samir hurried into the conference room carrying his notebook, he saw Mya and Deidra motioning to him to join their discussion. They were actively brainstorming on various decision-making strategies for their clients.

“Thanks for making time to come together, guys!” Deidra told them as they exchanged hugs. 

“Hey, no problem,” agreed Samir. “I’ve been dying to get out of that stuffy office. I’ve been aiming for us to have a quick discussion before next week’s presentation.” 

“Absolutely,” Mya chimed in. “You know any excuse to hang out with my crew is a good one.”

“So, what’s going on?” asked Samir.

“Let’s jump right in,” Deidra motioned. “Since our clients are fairly new to this part of the country, I wanted to discuss the dynamics of business decision-making, particularly the balance between instinct and instruction. Plus, it seems like a pressing topic for them.”

“I completely agree, Deidra,” replied Mya. “I’ve noticed from their proposals that their executive team is either heavily relying on their gut feelings or sticking rigorously to established procedures. Seems like there’s no in between for them. However, it’s really interesting how both approaches have their pros and cons.”

“Definitely. The power of instincts can’t be underestimated, especially in rapidly evolving markets. I think of the greats like Steve Jobs and the Oracle of Omaha Warren Buffet and how they made groundbreaking decisions based on their intuition. It’s that quick response that can lead to innovation,” Samir offered.

“Exactly! But relying solely on instinct can be risky. Without validation, decisions might reflect personal biases rather than market realities. I had a client who launched a product based purely on instinct, and the market showed him the exit,” replied Deidra.

“Dang. That’s a valid point. It highlights the importance of instructional strategies. A structured approach can ensure that decisions are data-driven and that there’s accountability. It’s essential for large companies as well as newly established organizations, you know? Creating consistency across various teams is key,” commented Mya.

“Yes, but there’s also the risk of becoming too rigid and miss out on creative opportunities when you only adherence to these strategies. If they don’t adapt quickly, they can fall behind more agile competitors. Think of Kodak. They basically created the marketplace for photography and dominated it; and yet they fell victim to digital photography because they refused to read the writing on the wall,” explained Deidra.

“Finding that right balance is really what it’s about. Instincts can help identify opportunities, while established strategies can provide a framework for implementation. It’s crucial to leverage both approaches effectively,” offered Mya.

“I would agree. One way we can help clients is by developing a decision-making process that incorporates both intuitive and analytical elements. Feedback loops can validate instincts while allowing for agile responses,” interjected Samir.

“Exactly! Getting the clients to embrace a culture that values both instincts and analytics is crucial. The teams should feel empowered to use their intuition but also have the tools to support those instincts with data,” pointed out Deidra.

“And don’t forget about the experience of the team. The more seasoned teams can often blend instinct and instruction seamlessly, while newer teams might need more guidance on structuring their decision-making processes,” added Mya.

“You know guys, I feel like context is important as well. High-stakes decisions, those multi-million-dollar decisions, might warrant more structured approaches, especially when time is available. Conversely, fast-moving environments call for instincts to take precedence,” noted Samir.

“Absolutely, we need to help our clients recognize the situations that demand flexibility versus those that require a more structured approach. You have to know when to trust gut feelings and when to go with the data.

“Well, sounds like we have a plan of attack. Let’s put together some proposals centered around these two concepts. We can teach them how to create a balanced framework that encourages both instincts and structured analysis,” concluded Deidra.

“I love it guys! A balanced approach will not only enhance their decision-making but also promote a culture of innovation and accountability,” piped in Mya.

As the trio leaves the conference, they felt the buzz of excitement and newfound clarity. They realized that the balance between relying on instincts and using institutional instructions is not a theoretical concept, but a practical framework that can reshape the decision-making landscape of their clients. 

Always trust your gut, but sprinkle in a bit of data driven analysis on top.