An acquisition, a major investment, an outside manager, or international expansion. These are decisions that will shape the direction of your company for years to come. But how do you go about making them the right way? Vlerick Business School investigated this at 138 SMEs, a study conducted in collaboration with Titeca Pro Accountants & Experts and Bank van Breda.
Effective strategic decision-making occurs when companies combine analysis, relevant experience, and critical evaluation.
More reports won't help you make a better choice
Many entrepreneurs think that making more professional decisions means more numbers and more analysis. That’s only partly true. Companies that made good decisions didn’t have more analysis at their disposal. What they did do was make use of relevant experience, and were thus able to draw on their accumulated expertise, pattern recognition, and lessons learned from similar situations.
Therefore, not every strategic decision benefits from further research. Above all, make sure to involve people who know where the pitfalls lie.
Follow your gut, but let yourself be challenged
Trusting your gut is part of being an entrepreneur, and that won't change, even as your business grows. It only becomes truly strong when you test it: against the numbers, and against someone who sees things differently.
"An entrepreneur doesn’t have to let go of their gut feeling, but they do need to dare to challenge it. The added value doesn’t lie in yet another analysis or report, but in relevant experience, incisive questions, and someone who’s willing to question even your preferred option. That’s how you make entrepreneurship stronger, not less entrepreneurial.
Matthias WallaeysPartner and business partner at Titeca Pro Accountants & Experts
Not every decision requires the same approach
Hiring a top executive is different from acquiring a company. In the case of a recruitment Emotions play a big role, and you tend to choose someone who’s similar to you. Clear criteria and a second opinion can help in that case.
At a acquisition or expansion into foreign markets experience carries more weight. In the case of a investment or financing You need both the numbers and experience. And the higher the stakes, the more time you should set aside for it.
An unbiased perspective from the outside
A decision loses strength when everyone focuses primarily on defending their own budget, department, or position. A board of directors or advisory board helps break through that: there’s someone at the table without an agenda of their own, who asks the right questions.
That’s also how we see our role. Titeca guides entrepreneurs throughout their entire journey, from startup to business transfer. Along the way, there are moments that shape your future. It’s especially during those moments that we want to be more than just the accountant who provides you with your financials.
Not every SME has a board of directors or an advisory board. A A dedicated advisor who knows your business, can certainly take on a significant part of that role. We bring experience from many similar projects, ask the tough questions, and aren’t afraid to ask whether your preferred option is really the best one—even if you’ve already made up your mind.
In most of the decisions studied, AI played only a minor role. Still, it can help you gather information, come up with other options, or test your reasoning.
Use it as a critical discussion partner, not a decision-maker. The final decision still requires experience and human judgment.
The Study Strategic Decision-Making Maturity in SMEs was conducted by Prof. Miguel Meuleman, Prof. Yannick Dillen, and Charlotte Van Kerschaver of Vlerick Business School, in collaboration with Titeca pro accountants & experts and Bank van Breda.
Vlerick also translated these insights into a practical guide, the Decision-Making Playbook, with specific questions to help you evaluate your own decisions.