Toronto’s Rotman School of Management and the author of The Design of Business (Harvard Business Review Press, 2009).
1. This article explains the importance of using qualitative method/judgment in business
decision making for managers. 2. Many managers nowadays are trained and applied heavily on quantitative method in their decision making. 3. There is a believe that a firm’s success was driven by the quantity of its data and the ability to model them. 4. For instance, the deciding factor to purchase a car, we must not only measure its fuel consumption and interior space but also take into account the beauty of its design and the exhilaration of driving it. 5. Although factors such as design and trust can’t be reduced to numbers, they can be interpreted and understood. Even though trust is something come from internal, but it can be transformed into action or behaviour. 6. For instance ex CEO of P&G, A.G Lafley was using a qualitative judgment successfully in his career. 7. He countered back the result of a survey by reading comments from hundreds of consumers. 8. By doing so, he knew exactly the customer wants. 9. Firms are putting aside data-driven approaches and borrowing from disciplines like ethnography. 10. They study consumers interacting with products. 11. They give consumers cameras and diaries to record their experiences. They even visit consumers home. 12. In order to implement it, we completely need new capabilities. 13. Therefore, business schools need to make changes to materialise this approach.