“The heart has its reasons, which reason does not know.” Blaise Pascal’s timeless observation captures the essence of why human behaviour often defies logic. In the business world, this rings true: despite the wealth of data at our fingertips, decisions are frequently driven by emotions, culture, and context rather than pure analysis. Daniel Kahneman, a Nobel laureate and renowned psychologist, reinforces this idea, suggesting that our reliance on heuristics—mental shortcuts that guide decisions—often leads to irrational outcomes. This insight challenges us to look beyond spreadsheets and analytics to understand the deeper, human elements influencing behaviour.
The limits of traditional problem-solving tools
Imagine a company struggling to launch a new product in a foreign market. Their approach, based on detailed market research and financial analysis, seemed foolproof on paper. Yet, sales remained flat, and the team couldn’t understand why. They had underestimated the cultural nuances of the new market—an oversight that numbers alone couldn’t reveal. This is a common pitfall of relying solely on traditional business tools.
Christian Madsbjerg and Mikkel Rasmussen, authors and proponents of applying human sciences to business, argue that these tools often overlook the nuanced, cultural, and emotional factors that drive real-world decisions. Solving such challenges requires a shift in perspective.
Sensemaking in action: Decoding human behaviour
Sensemaking, a concept rooted in anthropology and other human sciences, offers a way to bridge this gap. It’s not just a method but a mindset—one that involves interpreting human behaviours and cultural contexts to uncover actionable insights. Consider the following stories:
Understanding cultures
A global software company was experiencing resistance to a new workplace initiative aimed at boosting collaboration. Traditional engagement surveys failed to pinpoint the problem. By using sensemaking, the leadership team delved into the cultural dynamics of their organisation. They discovered that employees in different regions viewed collaboration differently—what worked in one office felt invasive in another. Armed with this insight, they tailored their approach to resonate with local cultural norms, resulting in higher adoption rates.
Setting strategic direction
In another instance, a startup founder faced a crossroads: should they pivot their product or double down on their existing strategy? Data alone couldn’t provide the answer. Through sensemaking, they explored the stories and motivations of their early adopters. This revealed unmet needs their product could address, providing clarity and confidence to pivot successfully.
Adapting to disruption
A retail chain found itself struggling to adapt to the rapid shift toward e-commerce. Instead of chasing competitors’ strategies, they used sensemaking to understand how their customers’ shopping habits were evolving. By observing and engaging with their customers, they identified a niche market for in-store experiences that complemented online shopping, setting them apart from purely digital rivals.
A new paradigm for problem-solving
These stories highlight how sensemaking goes beyond numbers and metrics. By combining the rigour of human sciences with the practical needs of the business world, it empowers leaders to:
- Decode cultural dynamics.
- Uncover the motivations behind behaviours.
- Build resilient strategies that adapt to change.
Incorporating sensemaking into your approach doesn’t mean discarding traditional tools; rather, it means complementing them with a richer understanding of the human factors at play. Imagine unlocking new opportunities not by crunching more data, but by interpreting the world through the lens of human stories and behaviours.
As Kahneman, Madsbjerg, and Rasmussen highlight, the key to success lies not in more data but in better interpretation of the world around us. Sensemaking isn’t just a tool for today’s challenges—it’s a compass for navigating the complexities of tomorrow.
