Executives Make Decisions on Outdated Forecasts, Report Finds

A new report by Board reveals that 83% of executives have seen their boards make strategic decisions based on forecasts they recognize as outdated. Consequently, 40% of these companies have experienced significant business repercussions.

The survey, which polled 300 C-suite executives (CFOs, CIOs, COOs) from enterprises with at least $100 million in annual revenue, highlights increasing pressure for faster decision-making. While 85% of respondents report heightened pressure, only 27% of companies possess the capability for real-time re-planning. Approximately three-quarters indicate that half or more of their planning decisions rely on data older than 30 days.

This situation is particularly acute amidst economic uncertainty, with 51% of executives anticipating a recession. The ability to rapidly adjust pricing, hiring, inventory, and investments is crucial for navigating such conditions.

Artificial intelligence (AI) is viewed as a potential solution, though its financial return remains mixed. Fifty-nine percent of companies find their AI investments yielding less value than anticipated, yet 92% of this group plan to increase spending. The report also found that 21% of organizations present a more optimistic view of AI performance to boards, investors, and other stakeholders than reality supports.