The Pyramid of Wisdom

As a small-business owner, even the tiniest of decisions can have a big effect on your business. That’s probably the reason that most business owners try to base their decisions on the facts… and the facts alone.

But sometimes, the facts just aren’t enough to make an informed decision. Sometimes, what you really need is wisdom.

Now, wisdom doesn’t always come easy, that’s for sure. And ironically, you can’t have wisdom until you first have those facts – that data that defines a specific activity in raw form.
But before a thoughtful decision can be made, that data must be converted into usable information. Sometimes, that means combining with other data, as in, “we’ve experienced this, but we can sometimes also expect to experience that. This assembly of data gives us the ability to form ratios and percentages that can often accurately predict a range of potential outcomes.

But you’re not ready for decision-making yet. Because that information must now be analyzed and interpreted, something we can collectively call “knowledge”. Now, here is where many business owners feel comfortable making a decision and moving forward. But in truth, there’s still one step left, one that comes with years of applying this knowledge and observing the outcome – that “wisdom” we’ve been talking about.

So, what does all of this have to do with your small business?

In his book, In The Black, author Allen B. Bostrom notes the importance of using your experience to make decisions about the direction your business is taking. This experience, of course, relies on the data and information that is accumulated along the way and certainly, the more accurate this data, the more accurate your experiences will be.

But in order to master the Nine Profit Principles we’ve discussed in previous posts, you must realize that what you see now as the “big picture” may not necessarily be your vision later down the road. Likewise, what appears to be your biggest challenges early on may actually turn out to be your greatest blessings in disguise. Because when you’re making decisions from a perspective of wisdom, rather than just data or information, you become the expert. You’re no longer guessing or assuming – you’re basing decisions on your collective wisdom, not just raw facts.

And it’s this wisdom that will ultimately lead you to the greatest success.