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Intuition More Vital than Metrics, Say CEOs
US CEOs are more likely to rely on their intuition than on data-driven analyses and quantitative information when making business decisions, according to the 6th annual CEO survey by PRWeek magazine and global public relations and public affairs firm Burson-Marsteller, conducted by Millward Brown.
62% of CEOs said that gut feelings are highly influential in guiding their business strategies, while only 44% cite internal metrics and financial information and 41% competitor analyses.
Better news for researchers is that, when considering the outcomes of their actions, customer reaction is CEOs' most common priority (79% include this in their shortlist), followed by long-term financial performance (74%) and corporate reputation (73%).
Reacting to emerging issues is important: CEOs focus on long-term goals but revise them frequently – 64% on a quarterly basis or more frequently as new issues and trends arise. Among the latter, new technologies (mentioned by 58%) are prominent, followed by changes in energy prices (41%) and healthcare costs and concerns (39%). More than half (53%) say they need to better understand the impact of emerging issues on their business for strategic reasons.
'Business decision-making is a multi-dimensional process that incorporates instinct, information and foresight' comments Mark J. Penn, Worldwide President & CEO, Burson-Marsteller. 'The intuition cited by these CEOs is likely fueled by research, sharpened by years of experience and industry know-how as well as a deep awareness of stakeholder attitudes and behaviors.'
Sixty-two percent of CEOs indicate they strongly prioritize morale as an outcome of their business decisions and 61% say they regard motivating employees and building morale among their key responsibilities.
Julia Hood, PRWeek's editor-in-chief, says employee satisfaction is also key: 'CEOs are under greater pressure to recruit and retain top talent in an environment where people move around to different companies more frequently, and often feel less of a connection to bigger organizations. Creating a culture of innovation and making employees part of the decision-making process are key components for fostering loyalty and commitment to the company's mission.'
A total of 252 US CEOs completed the survey in September 2006. Complete results are in the November 6 issue of PRWeek (www.prweek.com ). Burton-Marsteller's home page is at www.burson-marsteller.com . The firm is part of Young & Rubicam Brands, a subsidiary of WPP.
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