The usefulness of the management cockpit in decision-making

Decision-making is a central element of business management. To achieve operational excellence, the ability to make effective and informed decisions is crucial for the survival and success of the organisation.

However, decision-making is not always straightforward. How can the management cockpit help leaders navigate this complex landscape and make more informed decisions? In this article, we will explore the importance and usefulness of the cockpit in managing your projects and in the decision-making process.

Decision-making and bounded rationality

Bounded rationality is a concept introduced by American psychologist Herbert Simon, which challenges the idea that decision-makers always have all the necessary information to make optimal decisions. According to Simon, in reality, decision-makers are often constrained by incomplete information, lack of time, and their own cognitive capacities. Thus, rather than seeking the “perfect” solution, they look for a “satisfactory” solution that best meets the current requirements.

Faced with this bounded rationality, business leaders encounter numerous challenges. They often have to make important decisions within short timeframes, with partial data, while avoiding the pitfalls of cognitive biases. This decision-making myopia can sometimes lead them to choices that, although seeming appropriate in the short term, are not necessarily the best for the long-term future of the company.

Cognitive biases affecting decision-making

Cognitive biases are automatic thought mechanisms that, although useful for quickly processing large amounts of information, can sometimes lead us astray. In other words, they are “mental shortcuts” that our brain uses to speed up decision-making, but which are not always accurate.

Let’s take a few common examples to illustrate this:

Confirmation bias: we tend to favour information that confirms our pre-existing beliefs and ignore or minimise information that contradicts them. For example, if we believe our product is the best on the market, we might ignore negative customer feedback and only pay attention to positive feedback.

Framing bias: the order or manner in which information is presented can influence our perception. If we are told that a surgery has a 90% chance of success, we might be more inclined to try it than if we are told it has a 10% chance of failure, even though the statistics are identical.

Anchoring bias: when making decisions, we tend to rely heavily on the first piece of information received, even if subsequent information should call it into question. .

Negativity bias: our brain often pays more attention to bad news than good news, which means we might give disproportionate weight to negative events.

By understanding these biases and being aware of their presence, we can better anticipate them and make more balanced and thoughtful decisions.

The management cockpit: a solution to these challenges

Faced with the challenges of decision-making in a complex and uncertain environment, the management cockpit emerges as an appropriate response. Similar to an aircraft’s dashboard, the management cockpit in a company provides the leader with a clear and consolidated view of crucial information. It is not just a visualisation tool but an interface that highlights essential data, allowing the decision-maker to focus on what matters most.

The management cockpit simplifies decision-making by organising and presenting information ergonomically. Instead of sifting through numerous reports and analyses, the leader can, at a glance, grasp the current state of the company and identify areas requiring intervention. But beyond facilitating decision-making, the management cockpit plays an essential role in deploying the company’s strategy. By defining and regularly monitoring key indicators, the entire organisation gains transparency. Each employee better understands their role and contribution to the overall strategy, enabling more harmonious and effective execution of action plans.

Benefits of the management cockpit

The management cockpit offers a plethora of benefits that make it indispensable for any leader concerned with making informed decisions. Firstly, it stands out for its organisation and ergonomic presentation of information. This intuitive design allows the decision-maker to quickly and effectively visualise all essential data, facilitating understanding and decision-making.

Moreover, the management cockpit focuses on fundamental issues. Rather than overwhelming the leader with a flood of information, it highlights key elements that require particular attention, allowing a focus on what truly matters.

Finally, it is not just a visualisation tool. The management cockpit plays a leading role in the operational support of deploying a company strategy. It ensures increased transparency within the organisation, allowing all employees to share a common vision of the company’s performance criteria and fully understand their role in implementing the strategy.

In today’s business landscape, marked by growing uncertainty and unprecedented complexity, decision-making becomes a delicate and crucial exercise. The management cockpit then emerges as an appropriate response to these challenges, offering leaders an overview, ergonomic organisation of data, and a focus on primary issues. More than just a tool, it proves to be a true strategic ally, guiding the company towards informed decisions aligned with its objectives.

We strongly encourage all companies, regardless of size or industry, to integrate the management cockpit into their managerial toolkit.

4 fundamental points of decision-making

1. Bounded rationality affects decision-making
   Decision-making in business is often hindered by bounded rationality, a concept introduced by Herbert Simon. Leaders, despite their best intentions, do not always have all the necessary information to make perfect decisions. Instead, they often have to settle for “satisfactory” solutions based on incomplete information and limited time.
2. Cognitive biases can distort decision-making
   Our brain, although powerful, is subject to many cognitive biases that can influence our judgement. These biases, although often useful for quickly processing information, can also mislead us.
3. The management cockpit
   A valuable tool for navigating complexity: In today’s complex business world, the management cockpit emerges as an invaluable tool. It provides leaders with a consolidated view of crucial information, helping them focus on what is truly important.
4. Adopt the management cockpit for better strategic execution
   Beyond simplifying decision-making, the management cockpit plays a crucial role in implementing the company’s strategy. It promotes transparency and ensures that all members of the organisation are aligned with the same goals.