The intuitive executive: Understanding and applying ‘gut feel’ in decision-making

Executive Overview Even though the conditions under which executives operate may sometimes limit or even preclude the use of rational analysis, it is nevertheless the norm in many organizational decision processes. Intuition, on the other hand, is often considered to be the antithesis of this approach and is usually overlooked or disregarded in decisionmaking. However, in recent years there has been resurgence of interest in intuition, perhaps because of some dissatisfaction with rationality and its limits and also because some psychologists are now arguing that much of cognition occurs automatically outside of consciousness and in the realm of intuition. Knowledge of intuition has made significant advances in recent years, and it can now be understood as a composite phenomenon involving interplay between knowing (intuition-as-expertise) and sensing (intuition-as-feeling). Furthermore, rather than being set in opposition to each other, intuition and rational analysis are better conceived of as two parallel systems of knowing. Against this backdrop we consider the significance of the two facets of intuition for executive decision-making processes. From this integrated perspective we offer some guidelines whereby executives can make more effective and intelligent use of intuition in ways that acknowledge its limitations while maximizing its potential in enhancing firm success in complex and fast-moving business environments. ........................................................................................................................................................................