Is your company’s direction based on DDD or HIPPOs?
You are likely losing ground if it is not DDD-based.
Translation: MIT’s Sloan School has researched and reported that “data driven decision-making” (DDD) is more effective than “highest paid persons opinions” (HIPPOs). Finally, we have some objective evidence that DDD works, it increases profits, sales, and provides better guidance to investments in new product lines and markets than do HIPPOs, not that we didn’t already know this from much of Deming’s pioneering work years ago and from what market researchers basically do.
Of course, as researchers, we have been saying this for years. Our ExecStats tool makes DDD not only possible, but it makes DDD slick and easy and interactive for executives running the show. Putting current audience data into your front-line thinking on a regular or daily basis DOES indeed make a difference to your bottom line.
It does not mean that you can simply let the data decide — intuition and gut are still factors, but for the most favorable impact, intuition is a factor AFTER you have the data in front of you.
And finally consider the cost of DDD vs HIPPO. DDD is far less expensive. It seems to be a no brainer, yet companies still run with the HIPPOs.
For more depth on this research on DDD’s see the following report, “Data Two, Gut One” in E-Week: