from eHow.com 7/13 enhanced by Peter/CXO Wiz4biz
How many? According to a 2006 PRWeek [Public Relations] survey, about 62 % of CEOs rely heavily on “gut” feelings or “intuition” when making business decisions. The term “go with your gut” refers to this decision-making process and how sometimes your intuition leads you to make a decision, especially when there is no clear best option. When business leaders are having a hard time making a business decision, they often put down the data, stop analyzing and just let their “intuition” take over to come to a decision.
Role of Data: Business leaders should always consider applicable data & metrics when making a business decision. For example, if an executive is considering whether to approve a larger marketing budget, he should ask his marketing manager for data that indicates “how much” a larger budget will increase company revenue. These data might include financial statistics generated from previous marketing campaigns that required larger budgets, such as TV commercials. The primary role of data & metrics in terms of business decisions is to provide factual information about the various choices, which should help executives decide which option is best. However, sometimes data is unavailable or irrelevant and business leaders turn to their own intuition when making decisions.
Types of Intuition: According to psychologist and speaker Dr. Paul Wong, there are seven types of intuition. They are:
1) primitive instinct, such as the fight or flight reflex;
2) responses from emotions, like fear or attachment;
3) bodily intuition, or paying attention to physical signs from your body;
4) mystical intuition, such as ESP or fortune telling;
5) interpersonal intuition, such as character judgment;
6) practical intuition for problem solving problem; and
7) expertise intuition, which relates to having expert knowledge & information about a specific topic.
All intuition types involve natural reflexes & quick thinking, though the last three relate more to business intuition than the first four. A good business leader is able to quickly judge a person by various characteristics. S/he should also be a good problem solver and an expert in her industry. These traits help them make decisions throughout there career.
Developing Intuition: Intuition can be developed over the course of someone’s career. People learn from their mistakes & successes all the time. With that experience comes a sharpened intuition that can help them in making business decisions. For example, if a businessman entered an agreement or partnership with another person or company that cheated him out of his money, that businessman will learn from the experience and look for similar characteristics or warning signs the next time a partnership opportunity is presented. If he senses those characteristics or warning signs, he will be wary to enter the partnership and might choose to decline the offer based on his developed business intuition.
Why Entrepreneurs need Intuition: Intuition is important in any business decision or relationship, though it is especially important for entrepreneurs. Entrepreneurs are typically creative people who are comfortable taking risks. They turn ideas or sparks of inspiration into products & businesses. Some succeed, and many fail. In some cases, intuition is all an entrepreneur has when it comes to making decisions. For example, if an entrepreneur has an idea for a product unlike anything available, there are no real data to indicate whether the product will be successful based on similar product launches. The entrepreneur has to decide whether the product will catch on with people and sell well, and those decisions are often based heavily on intuition. (So, how’s yours? Are you training it so you’ll have it when you really need it? Wiz4biz)
Comments: Tell us how your Intuition has helped you.