Three modes of using facts in decision making
July 1, 2010
Article in Sloan Review sheds some light on the relationship between facts and decisions. The relationship is not unimodal. One can view the role of facts in decision making with some flexibility. The article posits the following structure:
- Facts can be used to MAKE decisions. Used where decisions follow directly from the facts. An example would be a problem that can formulated quantitatively as an optimization problem. The answer to the math problem gives you the decision.
- Facts can be used to INFORM decisions. Used where a decision you are inclined to make needs fact checking. An example would be due diligence for an acquisition or hiring decision.
- Facts can be used to SUPPORT decisions. Used where a decision that has already been made needs to be legitimized. An example would be communication of decisions to larger audience. The appearance of a rational basis helps garner support and build confidence in the decision.
So fact-finding can precede the decision, work alongside the decision or follow the decision. They are all useful and valid modes to use evidence gathering as a part of the decision making process.
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