Navigating Executive Decisions: The Dangers of Relying on Gut Instinct
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Chapter 1: The Risks of Gut-Driven Decisions
Making decisions based purely on intuition can lead to detrimental outcomes for organizations, employees, and leaders' reputations. Even when executives assert that their choices are intended to enhance company culture, the reality often proves otherwise.
Recent trends show that many business leaders have relied on their instincts when mandating employees to return to the office. In doing so, they have disregarded employee preferences, relevant data, and the insights of workplace culture experts, believing they possess superior knowledge. Unfortunately, this has led to significant missteps.
This scenario mirrors the Spanish phrase "chocolate por la noticia!"—a humorous acknowledgment of misguided pride in a flawed discovery. For over two years, Diversity, Equity, and Inclusion (DEI), Talent, and Human Resources (HR) professionals have cautioned executives about the potential harm of rigid return-to-office (RTO) policies. Yet, some leaders have chosen to dismiss these warnings.
A recent article and accompanying white paper revealed some striking statistics: 80% of leaders confessed to making RTO decisions without understanding employee sentiments, while 54% admitted to relying on faulty data. Alarmingly, a quarter of them acknowledged basing their decisions solely on intuition.
The implications of these findings are noteworthy, particularly when considered alongside the projected $800 billion loss in office value due to the shift towards remote work. Here are my key takeaways:
- Data indicating employee preferences for remote work has been readily available and easily accessible online. What seems to be missing is the trust in the insights provided by DEI and Talent professionals. Many executives undervalue their contributions.
- If the necessary data had not been collected or was not entirely representative of the organization's needs, executives could have easily commissioned their Talent Teams or a consulting firm to conduct an internal survey. It’s a straightforward solution.
- It's particularly striking that leaders feel comfortable making significant talent decisions without solid data, whereas other business, financial, or project-related decisions typically demand thorough research and analysis. This raises questions about what leaders truly prioritize.
The term "gut instinct" often disguises deeply rooted biases and stereotypes. If these biases are not addressed at their source, organizations are likely to face long-term repercussions.
Companies should consider whether the decision to let go of DEI and Talent professionals was wise. Many of these actions can be revisited and amended—though it requires intentionality, transparency, and a genuine commitment to improving the employee experience.
The first video, "Pros and Cons: The Role of Luck and Gut Instinct in Business Success Part 2," delves into the complex interplay between intuition and data in leadership decisions.
Chapter 2: Embracing Data-Driven Leadership
The second video, "The Science Of Intuition: Learn How To Trust Your Gut Instinct & Make Better Decisions In Life," explores the science behind intuition and its impact on decision-making processes.
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In case you’re curious about my background, I’m Dani Herrera, a DE&I Professional and Speaker with over 15 years of experience in Talent Operations and Management. I focus on fostering inclusive and equitable workplace cultures.
I have been recognized as one of Mogul's Top 100 DEI Leaders in both 2021 and 2022, featured in several prominent publications, and have had the privilege of speaking at numerous conferences around the world. Learn more about my work and achievements here.