Managers at a typical Fortune 500 company may waste more than 500,000 days a year on ineffective decision making. Our sources for this estimate included and the US Bureau of Labor Statistics (for salary data). Assuming that at an average Fortune 500 company of 56,400 employees, 20 percent are managers who work 220 days per year: these managers spend an average of 37 percent of their time making decisions, and 58 percent of this time is used ineffectively. And 14 percent of C-suite executives report spending more than 70 percent of their time on the topic. 1 On average, 54 percent of respondents to our survey report spending more than 30 percent of their time on decision making. The opportunity costs of this are staggering: about 530,000 days of managers’ time potentially squandered each year for a typical Fortune 500 company, equivalent to some $250 million in wages annually. Fewer than half of the survey respondents say that decisions are timely, and 61 percent say that at least half the time spent making them is ineffective. A survey we conducted recently with more than 1,200 managers across a range of global companies gave strong signs of growing levels of frustration with broken decision-making processes, with the slow pace of decision-making deliberations, and with the uneven quality of decision-making outcomes. Since then, we’ve conducted research to more clearly understand this balance, and the results have been disquieting. Worst because organizational dynamics and digital decision-making dysfunctions were causing growing levels of frustration among senior leaders we knew. Best because of more data, better analytics, and clearer understanding of how to mitigate the cognitive biases that often undermine corporate decision processes. Two years ago, we wrote about how it was simultaneously the best and worst of times for decision makers in senior management.
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