[anonymous]4y0

I actually believe that management consulting companies are paid to help companies make big decisions. I believe this because usually they are hired when a company needs to make a big decision.

Decision theory shows us that a huge portion of making big decisions is making accurate predictions about the future (and the other pieces, such as determining an accurate utility function, are best left to the organizations themselves).

Decision theory shows us that a huge portion of making big decisions is making accurate predictions about the future

Where does it show us that's true?

More importantently how do you know that the customers of mangement consulting believe that's true? Do you think that the average Fortune 500 CEO invests resources into internal prediction making in a way to indicate that he believes this is true?

I think if the average Fortune 500 CEO would believe this to be true you would have much more internal prediction markets in companies. Programs for internal prediction markets that are not sold based on team building efforts but that are sold on actually producing actionable data.

Open Thread, Dec. 28 - Jan. 3, 2016

by [anonymous] 1 min read27th Dec 2015145 comments

10


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