business focus EXECUTIVE EDUCATION


Fast thinker or slow? Your leadership capability depends on it


In uncertain times, making the right call can be the difference between success and failure, so knowing how we make decisions can be enormously beneficial


OPEN PROGRAMMES BE EXCEPTIONAL. THE HENLEY WAY.


Chartered accountants Haines Watts presents a series of articles based on its blogs. It offers analysis, reviews and comments and welcomes your feedback at hwca.com/blog


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Sink or swim: A post- Brexit survival kit


writes Kapil Davda, director, Haines Watts


Whatever the post-Brexit deal is that we strike with the EU, the trade terms are unlikely to be as favourable as the ones we currently have.


According to Professor Patricia Riddell, a specialist in neuroscience and tutor on Henley Business School’s Advanced Management Practice programme: “We can become fixated on making good decisions, but studies into the neuroscience of decision- making suggest we can over- analyse things.”


henley.ac.uk/open Fast versus slow thinking


“When we make decisions based on cost–benefit analyses – associated with ‘slow’ thinking – our brain can process four sources of information simultaneously. If we choose the best sources of information, we’ll probably make the right decision, but if we don’t, we can be led in completely the wrong direction.


“Conversely, ‘fast thinking’ has a much greater capacity for processing information, so our unconscious decision-making is far more effective in reaching the best conclusion.


“Good choices depend more on the information than the process,’ says Riddell, ‘but using


Diana Richards 01491 418767 exec@henley.ac.uk henley.ac.uk/AMP @HenleyExecEd


20 businessmag.co.uk


your intuition seems to have distinct advantages.


“As a leader, you’ll be wrong sometimes, but you must keep measuring the effectiveness of your decisions. When you have time to assess valid data, slow thinking still outperforms fast thinking, suggesting that it may be a better management approach, while fast thinking suits the complex decisions required in leadership.”


Fast thinking takes practice


Riddell insists that fast thinking is a skill we can develop, but allowing your subconscious to express itself requires time and space, something senior managers rarely give themselves.


“We cover this aspect of leadership on the programme and it invariably has a profound impact.


“Frequently, great ideas come out of the blue when you get rid of the busyness. It may seem unproductive, but the science – and what we see from its application – tells a very different story.”


To remain profitable UK businesses reliant on exports to the EU, or those which have an EU labour force, will need strategies to cope with any changes - including the worst- case scenario of a ‘no deal’ or ‘cliff edge’.


It may involve starting afresh, going further afield and pursuing deals in emerging markets, which have a greater growth potential and higher returns. This might mean competing with businesses which will have ‘home advantages’ of local knowledge and a lower labour cost base; you might have to invest in more advanced technology, and there could be barriers to entry such as government red tape.


Investment in a local presence through using branches or agents, or identifying synergies with local partners and forming joint ventures, would be one way to overcome some entry obstacles.


UK businesses will certainly have to capitalise on their strengths of providing innovative products, niche and pioneering technologies, long-established/respected brands and strong business management skills. ‘Adding value’ to goods manufactured in emerging markets and selling them as higher-end ‘premium’ items would be one way to differentiate your offering.


Identify early on, potential sources of finance to fund the investment, from existing or new lenders, investors and shareholders. Use smarter foreign exchange risk management, including hedging, to minimise foreign exchange risk exposure.


Staffing is another concern – implement ways to attract staff, inspire loyalty and retain your existing labour force to reduce turnover. These don’t always have to be financial rewards; they could be providing a better work environment, personal development and flexible working policies.


Lastly, act NOW, talk to your professional advisers and other business leaders, look online for ideas and information – and devise your Brexit action plan.


For further information: hwca.com


THE BUSINESS MAGAZINE – DECEMBER 2017


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