Holistic View of Intuition and Analysis in Leadership Decision-Making and Problem-Solving
Abstract
:1. Introduction
2. Literature Review
2.1. Conceptions of Intuition and Analysis from Psychology and Organisational Behaviour
2.1.1. Dual Process Thinking
2.1.2. Heuristics and Biases
2.1.3. Explorations of the Nature of Intuition in Psychology
2.1.4. Expert Intuition/Gut Feeling/Body Sensations/External Cues
2.1.5. Intuition as Insight
2.2. Philosophical Understandings of Intuition
2.3. How Do Intuition and Analysis Work Together?
2.4. Reconciling Conflicting Messages: The Use of Paradox
3. Methodology
3.1. Data Collection
3.1.1. Demographics of the Sample
3.1.2. Ethical Considerations
3.1.3. Interview Schedule
3.1.4. Data reduction and Analysis
4. Research Findings
5. Discussion
5.1. A Strong Connection between Research Findings and Literature
5.1.1. Intuition as a Deeper Way of Understanding
5.1.2. A model of Decision-Making/Problem-Solving and Its Applications
6. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Feature | Intuition | Analysis | Bridging the Gap through Paradox |
---|---|---|---|
Consciousness | Unconscious (Evans 2008; Epstein 1994; Hogarth 2001), implicit, automatic (Hodgkinson and Sadler-Smith 2018), effortless and holistic, does not require cognitive effort, (Hogarth 2001), the product is conscious, but the process is not; unintentional and involuntary; can be conscious (Bas et al. 2019); experiential implicit learning (Epstein 1994), the process cannot be described (Dörfler and Ackermann 2012) | Conscious (Evans 2008), rational, explicit, controlled processing (Hodgkinson and Sadler-Smith 2018), volitional, intentional, requires cognitive effort. The decision-maker is aware of both the product and the process, we are in control of our thoughts (Salas et al. 2010; Evans and Stanovich 2013; Stanovich and West 2000; Darlow and Sloman 2010) | Since many decision-makers naturally rely upon analysis, it may be useful to bring intuition to consciousness, use it when you need to, devote time to it, learn to value intuition and an internal orientation, nurture and build confidence in your intuitive skills through feedback, keep track of your intuitions and intuitive insights (Hogarth 2001), learn to be more spontaneous (Sadler-Smith and Shefy 2004; Agor 1986), analysis and intuition should be used together (Akinci 2014) |
Functional characteristics /properties | Associative connections (Epstein 2010; Laureiro-Martínez and Brusoni 2018), domain specific, contextualised, pragmatic, parallel, low effort, rapid, high-capacity (Evans 2008) default process (Epstein 2003), holistic (Allinson et al. 2000; Dörfler and Ackermann 2012), related to emotion (Sinclair et al. 2009) and “gut feeling” (Akinci 2014; Akinci and Sadler-Smith 2009), stimulates novel solutions (Miller and Ireland 2005) spontaneous, a-logical (Dörfler and Ackermann 2012), pragmatic (Evans 2008), sudden insight (Cappon 1994) | Intentional, effortful (Epstein 1991), slow, low capacity (Evans 2008), intellective (Pollock 1989), inhibitory, logical, analytic, sequential, reflective, reductionist (Robson and Cooksey 2008), rule-based, formal rules are used (Allen 2011), abstract, logical, resource intensive, limited capacity, can only consider a few attributes, responsive to verbal instruction (Epstein et al. 1996; Epstein 2010), mediated by conscious appraisal (La Pira 2011; Myers 2010), affect free (Sinclair et al. 2009) | Cognitive and behavioural flexibility (Zhang and Han 2019), encourage ability to adapt to various problems (Laureiro-Martínez and Brusoni 2018) and switching ability (Braem and Egner 2018). Employ a thoughtful balance of the two approaches (Kutschera and Ryan 2009). See the bigger picture: this can be developed, use a paradox mindset. Use big picture thinking as well as detail consciousness (Hodgkinson and Clarke 2007). Be “consistently inconsistent” (Schad and Smith 2019) |
Individual differences | Universal, independent of general intelligence (Evans 2008), independent of working memory (Evans 2008), recognition of prior learning and experience, pattern recognition (tacit knowledge), preferred by experienced decision-makers, increases with seniority and age (Agor 1986) can be recognition primed by experience (Klein 1998, 2003) (Akinci and Sadler-Smith 2009; Simon 1987), the default method for experienced people (Dörfler and Bas 2020) | Heritable, linked to general intelligence (Evans 2008), limited by working memory capacity (Akinci and Sadler-Smith 2009; Darlow and Sloman 2010; Laureiro-Martínez and Brusoni 2018) | People tend to have a default style (Selart et al. 2008). Be aware of your preferred method of decision-making and commit to practising and using your less preferred approach (Hodgkinson and Clarke 2007). Extend thinking to include intuitive approaches which are available to everyone; seek integrative solutions. Look for new ways of combining and integrating diverse perspectives (Zhang and Han 2019); allow intuition to catalyse analysis and allow analysis to catalyse intuition; both differentiate and integrate (Keller and Sadler-Smith 2019) |
Method of problem-solving | Generating novel approaches, holistic (Hogarth 2001), associative connections (Epstein 2010), considering the whole problem, inductive approach, the context is important, domain specific, directness of knowing, non-linear, nonsequential (Sinclair and Ashkanasy 2005; Evans 2006; Sheffield et al. 2017), understanding without judgement, inside knowledge (Westcott 1968) | Rule-based, cause and effect relationships (Epstein 2010), deliberative, divide the problem into parts and analyse them separately in a rational and linear way, deductive approach, systematic analysis, hypothetical, abstract, context is not important, domain general (Calabretta et al. 2017; Sheffield et al. 2017) | Use systems thinking (Schad and Bansal 2018; Schad and Smith 2019), trust yourself (Agor 1984), engage with competing worldviews (Schad and Smith 2019); use virtuous cycles for creativity and opportunity (Smith and Lewis 2011), keep an open mind (Wang and Gloor 2018). Separate out decision possibilities but also look for synergies (Smith et al. 2016). Consider a playful approach (Beech et al. 2004), use humour and irony to surface deeper meanings (Vince and Broussine 1996; Jarzabkowski and Lê 2017); structure information to find patterns (Calabretta et al. 2017) |
Representation | Images, metaphors and narratives (Wang and Gloor 2018; Epstein 1994; Keller and Sadler-Smith 2019), non-verbal (Epstein 2010), archetypes (Jung 1921) | Abstract symbols, words and numbers, verbal (Epstein 1994, 2010; Keller and Sadler-Smith 2019; Sinclair and Ashkanasy 2005) | Practice thinking in images rather than words, create some space for visualising future scenarios, create some space for practising intuitive thinking. Visualisation can be powerful as a link between the rational and intuitive modes (Calabretta et al. 2017) |
Evaluation of risk | Affective, fuzzy representations, high tolerance of and comfort with risk (Wally and Baum 1994), high confidence in intuitions (Dörfler and Ackermann 2012), Shirley and Langan-Fox (1996), Sinclair and Ashkanasy (2005), knowing with certainty, perceived as genuine (Akinci 2014), be willing to take a risk by following your intuition (Slovic et al. 2007) (Reyna 2004) | The rational approach is designed to reduce risk and uncertainty (Reyna 2004), not suited to ill structured problems with inherent ambiguity (Sinclair et al. 2009) | Acknowledge ambiguity in current conditions, practise being more comfortable with uncertainty. Bring the tension into the open and explore and experience it, stay with the paradox in order to bring about dramatic shifts (Lewis 2000). Value the paradox of analysis and intuition as being an important ingredient of high performance. Proactively raise tensions (Lewis et al. 2014). Accept both sides of the paradox and recognise their interdependence (Jarzabkowski et al. 2013). Relinquish control (Korthagen 2005) |
Resistance to change | More resistant to change; can change with repetitive or intense experience Epstein (1991, 1994) and Sadler-Smith (2016) | Less resistant to change; changes rapidly and easily with new evidence and strong arguments (Epstein 1991, 1994; Sadler-Smith 2016) | Take advantage of both sides, and appreciate the distinctive benefits of both types of decision-making in the value of balancing them |
Stress level | Suited to high stress conditions (Yu 2016) | Negatively affected by stress (Yu 2016) | Develop a more peaceful demeanour through stress reduction activities such as meditation, walking, being in nature. Avoid anxiety and defensiveness (Lewis et al. 2014). Cultivate emotional equanimity (Calabretta et al. 2017) |
Relationship to complexity | Suitable when there is a high level of uncertainty, facts are limited, there is no clear path, several plausible alternatives exist (Agor 1986; Epstein 1991; Epstein et al. 1996) intrinsic certainty is helpful in complexity (Dörfler and Bas 2020) | Suited to situations with less uncertainty, with less information, analytical data to suggest a way forward, not suitable for use alone in complex environments (Agor 1989; Barnard 1968) | Understand the usefulness of intuition for high stress, ambiguous, volatile conditions; increase your acceptance of ambiguity and nonjudgement; accept you cannot control everything (Keller and Sadler-Smith 2019). Practice emotional equanimity, avoid anxiety and defensiveness (Calabretta et al. 2017) |
Speed/time availability | Rapid (Evans 2008), almost immediate, oriented towards immediate action (Agor 1986; Akinci 2014; Khatri and Ng 2000; Epstein 1994; Sadler-Smith 2016) | Slow (Evans 2008), oriented towards delayed action, needs time (Frankish 2010; Khatri and Ng 2000; Burke and Miller 1999; Dane and Pratt 2007) | Use expert intuition when time is short; split the two approaches either by space or time (Van de Ven and Poole 1988, 1995) |
Subjective versus objective | Subjective phenomena: based on accumulated personal experiences and feelings about the situation; self-evidently valid (Dane and Pratt 2007; Hogarth 2001), affectively charged (Dane and Pratt 2007) experienced passively through our emotions (Epstein 1991), often may be revealed by emotions (Epstein 2010; Hayashi 2001; Akinci 2014), experience is believing (Epstein 2010) | Objective phenomena; requires justification via logic, experienced actively: we are in control of our thoughts (Epstein 1991, 1994), emotionally neutral (Kahneman 2011) | Be comfortable with inner and outer processes and experiences; practice openness to unknown areas (Agor 1986); consider the pros and cons of each option and then assess your feelings about them. See paradox as a growth opportunity; switch cognitive gears (Calabretta et al. 2017). Intertwine the two approaches to reach a transcendence point (Dameron and Torset 2014). Confront the paradox and surface the tension to emerge a more accommodating understanding (Lewis and Dehler 2000) |
List | Content Investigated | Findings Highlighted |
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1 | Difficulties of making an important decision | Answers to this question concerned business decisions for the most part, but there were also some personal decisions that respondents preferred to speak about. Thus there were discussions of shifting a business, undertaking a large-scale development, major building projects, tailored advice to investment clients, selling the family business, hiring and sacking people, big investments into the share market, taking on new businesses, as well as significant personal decisions such as leaving a marriage. Some people spoke of one decision, but others preferred to speak generically of difficult kinds of decisions or several similar decisions that they had made during their career. |
2 | Regarding the experience of discomfort between options when people make a decision | Many people were able to recall discomfort between the options. Various types of conflict caused discomfort, some of it is society based and some of it highly personal. A businesswoman talked in general about the conflict between gut reaction and what society tells us to do: “Stereotyping is very influential and powerful, and some people succumb to that pressure. But intuition is an innate feeling, it’s the truth of who we are”. An exporter/restaurant chain owner said in referring to her decision to sell a restaurant or not, that there was a roughly 60/40 breakdown in intuition versus rationality, and she struggled for some time with her decision. She said: “I just didn’t really feel as I wanted to continue with the restaurant. However, I knew rationally that restaurants will come back in the future. The forecast is quite good. But I just couldn’t convince myself to sell it because that would be taking the easy way out.” An exporter/retailer described the decision to sell his family business and reported that his intuitive feeling told him to stay with the business, just give it another six months and it will turn around, but eventually there came a crunch. He said: “I had a moment of clarity; I was going nowhere. I can still remember the conversation with the accountant. There was an enormous sense of relief when I suddenly decided to sell. Intuition dragged it out, but the rational decision was the right one. Intuition is like flying a plane without looking at the instruments”. An investor commented: “I make my decisions on analysis, but I do have some discomfort in terms of my feelings. I know the markets are not totally rational and so therefore you can’t be sure of getting the optimal outcome if you base your decision totally on analysis, but that’s what I do anyway.” The MD of an investment company reported that while her analysis told her not to take on an exciting but hugely challenging new project, her intuition told her to go for it. “My deep intuition said you can do it. I have resented the project at times and struggle with going on. But then at the same time I know it’s the right thing.”A farmer/exporter reported intense discomfort over her decision about whether to challenge her father’s will. She said: “I was nervous about the implications of challenging the will. It would make me seem like I was money grabbing and people wouldn’t understand. But it wasn’t about that. There was cognitive dissonance between what dad said and the will itself as presented to us. My decision was driven by a sense of mismatch. But of course, I had difficulty in substantiating my decision to challenge the will.” A nurse manager reported a strong feeling of tension when her intuitive judgement was overridden by another expert’s analysis. |
3 | The use of intuition or analysis or some combination of both | Analysis alone: Respondents who used only analysis were quick to comment about the shortcomings and dangers of intuition. Three males and two females, all aged over 65, said they use only analysis. They range from investors through to a professor and a consultant. The professor said: “Regarding intuition, I don’t trust it. I’m suspicious of it. The bigger and riskier the decision, the more I would be suspicious of it.” An investor said: “Intuition? I don’t use it. You can’t see it. You can’t trust it. It’s nothing better than an educated guess. I would never use intuition. You can’t act on it. What you need to do is to track a problem back to its source.” An investor /developer stated: “In my view intuition could be costly”. |
Intuition alone: The three respondents who relied upon intuition (one male, two females) were highly convinced of its efficacy above analysis and spoke with enthusiasm. The artist said: “I never would have done it [shifted his entire business to another state] if I had gone through an analysis process.” The TV presenter asserted: “I make decisions very intuitively. I get thoughts that pop into my head with no rational basis behind them. Most of the time when those thoughts come, it’s out of the blue. And I know I should act on them. All the logic isn’t necessarily there yet, but I just know it’s the right thing for me to do.” The MD respondent spoke of bypassing analysis and the scaffolding of the rational brain in order to climb into her subconscious at a deeper level. | ||
Combination: intuition and then analysis: Of the 20 people who started out with intuition, they were inclined to check their thinking with rationality later, often because the existing analysis needed to be tempered to the unique circumstances, or perhaps just to be sure if many people would be affected. According to an investor: ‘I think if you are making an intuitive judgement you are blending it with rational judgement. They are a bit intertwined, like spaghetti.” One investment advisor commented: “I rely on my decision-making history and experience, and then in terms of analysis I rely upon the company’s research.” A quality manager said: “I choose the right thing to do. Data is one thing but the story itself brings it all together and the story is much more than data. I think intuition builds early opinion and is based on experience. Analysis is using other evidence afterwards.” A construction executive said: “I can look at a forecast and I just know it’s not right. This happens to me quite a bit. I can walk into an office and I can tell you exactly what the climate is like in that office. After my first intuition if I need to, I go and get the evidence to support or challenge that.” An investment advisor said: “I definitely use intuition, but I also use insurance through diversification and risk management. I’m using something which is non-scientific and I’m aware of that. There are no rational grounds, but we can’t always do analysis.” Combination: analysis and then intuition: Five people said they use analysis followed by intuition. A consultant noted: “If there is no data, you have to use intuition. In fact, change is driven by intuition.” One investment advisor reported: “I rely upon the company’s research to do the analysis and then I know the framework that I’m dealing with. I overlay analysis with my own intuition and that’s my usual technique”. One research centre director said: “It’s more difficult to rely on intuition if the consequences are large; for example, you are responding to the board where you then have to justify your decisions and you can’t just say: I think it’s the right thing to do.” One investor said: “I do both; which one first? I think I do analysis first, but it depends on how big the decision is. I believe I work pretty much on analysis. Although regarding people, there may be an intuitive bit. The whole point of education is to learn to suspend judgement, to avoid stereotyping people and a lot of this comes from your upbringing”. | ||
4 | How did the decision turn out? | No respondent reported dissatisfaction with their decision. One person said: “It was the only decision which could be made”. Some people agreed that decisions should firstly come from analysis to ensure the right information before moving on to intuition, tempering the data with an overlay of intuition. Some respondents noted that it depended on the situation and with more complex problems, whether large or small, then intuition will be successful, perhaps validated by analysis for checking. |
5 | What is intuition to you? | Gut feeling/experience/body sensation: A total of 22 people related intuition to experience. This was also often expressed as gut feel or gut feeling, based on knowledge and experience gained over many years. Respondents talked about recognising patterns. For example, a consultant engineer said; “I think intuition is gut feel. It is purely based on my experience. Will it work? Other people don’t have that kind of experience. They need to do the calculations, get the data, et cetera. Most of my decisions are made on gut feel.” One investor was keen to distance herself from gut feel altogether: she said “What is gut feel? In terms of gut feel it to me it sounds more like emotion. I try to take emotion out of my decision-making”. One senior bank officer said: “In terms of gut feelings this is basically your experience and your education. This is not about emotion. Perhaps with quick decisions I might use emotion, but on the whole regarding emotion I was trying to have no emotion, I was completely unemotional”. The senior project manager said “Gut feeling is pattern recognition and it’s critical for me. It goes back to; if you only have a little piece of the information, then experience is helpful even if the situation is fairly novel. In fact, there is nothing new under the sun.” One farmer investor said: “I think gut feel is experience. Intuition is a lot about experience and also is common sense. Another senior project management said: “Gut feeling is significantly experience based. What I do is to ask the minimum number of questions and based on that I get the guts of the information which could be relevant. I’m filtering out a lot of information.” One hospital manager said: “I can walk into a person’s room and I can know if they are seriously ill, even if the chart says they are fine. I would notice little things about them; for instance, they look anxious in the eyes, et cetera. This is gut feeling. I guess I am using environmental cues. Other people can get so focused on the analysis that they miss the vital stuff which is right in front of their eyes. I call this ‘my little miracle’, that I could tell straight away. The older and more experienced I get, the more and more notice I take of my intuition”. Some respondents were able to give a location for their gut feel. An investor said: “To me intuition is gut feel, it’s based on past experience. Gut feel is a physical reaction that things aren’t quite right. It’s probably in different places for different people. I have a sensitive gut so I feel it in my gut.” A franchise manager said: “Intuition is gut feeling. It’s like happy vibe/confirmation/ the icing on the cake. I feel it in my throat area, almost like I need to swallow. That’s if it’s a happy feeling. If it’s a bad feeling then I certainly feel it in my stomach”. The insolvency director related gut feel as a body sensation: “I’m very observant about conflict. I can see an unhappy situation very quickly and it is through a body signs. I’ve got a sense of discomfort; I can quickly detect the signs and decide to move away. I feel the hair standing up on the back of my neck, my heart starting to race, et cetera. I know it’s time to go”. Aha experience/Eureka moment/Lightbulb moment: Creative intuition was a familiar experience to many respondents. A total of 18 people mentioned an idea just coming to you, dropping in unexpectedly, often when you are not thinking about the problem, an aha experience or Eureka moment, suddenly hitting the nail on the head unexpectedly, often happening during the night or upon awakening in the morning, new solutions arriving seemingly out of nowhere. A TV presenter said: “I just get thoughts/ideas/solutions which bob into my head about future plans. They’re not connected to other thoughts at that time. I might be thinking about something else and novel thoughts just appear. Then, I ask the question: what does this mean? Why have I got these ideas? Thoughts pop into my head with no rational basis behind them. And I know I should act on them”. A senior project manager said; “Intuition is something that goes on inside your head and out of your control. Something pops up. You might just wake up and something happens. I tend to remove myself from the situation go and sit quietly with a cup of coffee and often the answer is clearly there. And you know it is right.” One farmer exporter said; “This happens to me at 3 AM in the morning. I may be thinking about something and my brain has clearly been mulling over it and suddenly I just get an idea and I think; that has hit the nail on the head! I need to get up now write it down. I do have this kind of thing quite a lot. And mostly at night. Or it could be when I’m focusing on something else and the thought just pops into my head.” The architecture professor indicated that in the middle of creating a design, suddenly in the middle of the night a connection arises, and a really good design is apparent and that this is an exciting and good feeling. A senior midwifery practitioner said that she often noticed that she would feel strongly that a decision was correct, and that analysis would kick in some time later and then she would understand more about why she had made a particular decision. |
6 | Further thoughts | The following comments were made at the end of interviews. Some comments were about getting the right information, balance and risk. “If you are intuitive, surround yourself with people who are good at analysis.” “This is a very important question for business-people. Balance is important. It’s important also to get the right information; It’s very hard to balance intuition and analysis and this depends on who you are.” “ If I think the risk is very high, then I am more likely to fall back on analysis. With a lower risk I might use more intuition; in terms of cognitive dissonance, you could choose analysis first and then use intuition or you could do it the other way around.” “Intuition is a special form of intelligence, but you need to look for the signals.” “Intuition is like a conversation with the subconscious, and insights just pop up, without you asking for them.” Other comments concerned the positive relationship with emotion, the creation of the right mindset for intuition to arrive, that intuition is deeper and more valuable, and that it may be necessary to justify an intuitive decision post hoc. |
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Hallo, L.; Nguyen, T. Holistic View of Intuition and Analysis in Leadership Decision-Making and Problem-Solving. Adm. Sci. 2022, 12, 4. https://doi.org/10.3390/admsci12010004
Hallo L, Nguyen T. Holistic View of Intuition and Analysis in Leadership Decision-Making and Problem-Solving. Administrative Sciences. 2022; 12(1):4. https://doi.org/10.3390/admsci12010004
Chicago/Turabian StyleHallo, Leonie, and Tiep Nguyen. 2022. "Holistic View of Intuition and Analysis in Leadership Decision-Making and Problem-Solving" Administrative Sciences 12, no. 1: 4. https://doi.org/10.3390/admsci12010004
APA StyleHallo, L., & Nguyen, T. (2022). Holistic View of Intuition and Analysis in Leadership Decision-Making and Problem-Solving. Administrative Sciences, 12(1), 4. https://doi.org/10.3390/admsci12010004