how to make your company smarter - mit
This is a PDF document titled "how to make your company smarter - mit.pdf" created in July 2025. It is a special collection from the MIT Sloan Management Review focusing on leadership and decision-making in organizations. The content includes detailed articles by experts such as Paul J.H. Schoemaker and Philip E. Tetlock on building intelligent enterprises by combining human judgment with technology, improving forecasting through prediction tournaments, modeling expert knowledge, and experimenting with artificial intelligence. It also covers problem formulation as a critical management skill, emphasizing structured problem-solving techniques and cultural changes needed to make companies smarter. The document is educational and research-based, aimed at business leaders and managers seeking to enhance organizational decision-making and adaptability.
Questions this document answers
Companies can make smarter business decisions by blending technology-enabled insights like big data and AI with sophisticated human judgment, reasoning, and choice to better manage uncertainty and complexity.
Forecasting accuracy improves through prediction tournaments that encourage competition, experimentation, and innovation among participants, helping identify forecasting talents and methods.
Expert knowledge can be better leveraged using bootstrapping, which creates simple models mimicking expert judgment that often outperform inconsistent human predictions.
Structured problem-solving helps organizations articulate clear problems, test hypotheses iteratively, and apply learning to drive effective change and improvements.
Problem formulation is crucial because it directs focus on issues that matter, enabling clear goal setting, avoiding premature solutions, and supporting rapid learning and change.