The truly important decisions in business, and in life, require judgment. Numbers and other information can help sift and sort, they can eliminate the obvious outliers, but they can t make judgments. That requires a human. However, numbers can lull a human into complacency. Let s look at a simple business problem.
Financial analysis leads to three realistic options.
That s no surprise for experienced decision-makers. The assumptions won t hold true. No one has a crystal ball that good. You must make a decision based on experience, knowledge and available information. You must make a judgment.