How do financial directors make decisions

Research from CIMA provides an answer to these questions: How do financial directors make decisions? And, when confronted with a capital investment proposal, or the need to declare a dividend, or a judgment that will have implications for funding and capital structures, what do they do? The logico-scientific approach to decision-making is discussed. The objective of this approach is to establish the absolute truth about a situation so that a definitive and logical decision can be made. Also discussed is the narrative approach to decision making. This mode replaces the logico-scientific objective of using information to define an absolute truth with a search for meaning in a complex world where incomplete information is the norm and where no answer can guarantee a certain future.