QUESTION 5
IS IT EVER OK TO RELY ON GUT INSTINCT?
Why it’s important: Eighty per cent of what you know about your job is held in the form of tacit knowledge.
The last 30 years has seen a greater emphasis on scientific approaches to management. This has made some people wary of making decisions based on gut instinct. Instead they try to evaluate every issue using various quantitative techniques. This is a mistake (see Question 75).
Friedrich von Hayek won the Nobel Prize for economics for his work on free market economics. One reason he supported free markets was because devolved staff find it impossible to report to the centre everything they know about local conditions, problems and opportunities. This is because much of what they know is held ...
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