I believe that our gut feelings and intuition are interconnected. Gut feelings are instinctive and rely on intuition and not facts. Intuition is the power to grasp a situation without the need for conscious reasoning. This is the total opposite of being rational in management and doesn’t have any data that support it. Intuitive decision is something more than just a sound judgment. It includes some sort of sixth sense that usually deals with emotions. It points at the decision you should make, but doesn’t really explain it.
Most of us make intuitive decisions in our everyday life. For example, studying the day before the class. This is because you have a gut feeling something you will have a pop quiz. Sometimes our intuition is right and sometimes our intuition is wrong. Either way, we all have tried something that we either regret or applaud due to our intuitive decisions.
These choices are apparent in our daily lives, such as, choosing our partner, selecting your first car, picking your first house, and getting your first job. But how does this apply in a business/management sense? How can we utilize this in a business environment?
Despite the expensive data and analytics provided to managers at their disposal, many experienced managers still rely on intuition to make complex decision making. Consider chess for example, even if we know there are numerous way to move the pieces, sometimes we go with our gut feeling when we make important decisions.
However, what are we basing this intuition on? I honestly believe that intuition is based on a highly complex and highly developed form of reasoning from our years of experience and learning. Patterns that we have learned, facts that we have studied, concepts we have utilized, procedures we have experienced, and much more. Which is why I think that many upper senior executives still rely on intuition when making important decision making. For example, compared to a kid, an experienced adult’s intuition is probably more reliable.