It's Not All About the Numbers

Modern executives make business decisions based primarily on quantitative methods, with less emphasis on other factors, however, the situation in the world economy can teach us that the numbers are not everything.

Tuesday, February 7, 2012

Since the 1950’s, the use of quantitative methods has been widespread in business schools, becoming absolute in business practice, Guillermo Edelberg writes in an opinion piece in

The author quotes R. Martin, dean of the Rotman School of Management at the University of Toronto who says, "We are governed by approaches such as 'show me the numbers' or ' whatever can not be measured does not matter'. which has not taken us very far. Economists are consistently wrong. None of the leading macroeconomists of organizations dedicated to forecasting expected that by mid-2008 the economy would grow much less let alone that it would explode. Meanwhile, CEOs are still making mistakes while offering up quarterly guides based on their sophisticated financial planning and they are still punished, not for poor performance but for not predicting outcomes several months in advance. "

"So what can be expected in the near future? Perhaps a better balance between quantitative and qualitative analysis in decision-making. As one scholar put it: 'not everything that matters can be measured and not everything that can be measured matters'," said Edelberg.

More on this topic

No Information to Make Decisions

November 2019

In Nicaragua, the authorities have not published information on the Monthly Index of Economic Activity since February 2019, when the year-on-year fall was 7.5%, a situation that prevents businessmen from making decisions based on the real situation of the economy.

The latest report published by the Central Bank of Nicaragua states that in the second month of 2019 the IMAE in the country registered a 7.5% decrease compared to February 2018, mainly because of the behavior of the Hotels and Restaurants, and Fisheries and Aquaculture sectors.

Business Information "Convenient for Me"

November 2016

The failure of polls on the presidential election in the US shows that in order to get the right information, data must be collected and analyzed with scientific rigor, free from any bias caused by the personal interest of pollsters and analysts.


Direct Access to Data Changes Management

May 2015

The increasing speed and ease of direct access to the information needed for decision-making, is drastically reducing the number of middle managers who used to be hired to provide them.

In companies of the last century when a sales manager needed information about last year's sales in order to take a relevant decision, he or she had to contact their assistant manager, who was responsible for collecting information and presenting it to the director. Nowadays, the direct and easy access to all information concerning day-to-day business allows the same director to touch a screen, get the information and make the decision, reducing costs and saving time.

Five Steps to Make Better Decisions

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In times of crisis, flexibility and responsiveness in order to make good decisions is what distinguishes successful businesses.

In the unpredictable conditions of these complicated times, planning for three months, let alone a year, is more difficult than ever. Despite the chaos, there are management tools that can help you navigate through turbulent business environments.

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