Wrong decisions are costing firms about £800k a year

UK
business leaders admit that one in four of the decisions they make is wrong,
costing their firms £800,000 a year, according to new research.

The
Capgemini Business Decisiveness Report
found that UK businesses make 20
critical decisions worth £3.4m a year on average. Each decision is worth about
£167,267.

The
survey of 270 managers, from boards of companies with annual turnover of more
than £200m, reveals that 24 per cent of these decisions are wrong.

The
financial services sector has the highest ‘failure rate’, with nearly one in
three decisions being wrong, it shows.

With
an average of 19 ‘business critical’ decisions taken each year, this equates to
a wrong decision every eight weeks.

Bill
Cook, Capgemini’s head of consulting services for the UK & Ireland, said:
“A large part of our community of decision-makers, right across the commercial
sector, are saying: ‘We are being asked to make an awful lot more decisions, an
awful lot more quickly, with rather less information than we’d like and rather
less time to consult with people than we’d like. As a result, we are making
more wrong decisions’.”

By Daniel Thomas

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