any executive-level decision-maker would be paralyzed without strong prior
I don't think that's necessarily true, just having a high risk tolerance works as well. I also think you underestimate the amount of evidence present -- e.g. in most organizations the next-year budget is a variation on the previous year's budget.
the kind of certainty we hold out for (often vainly) in science is almost unknown in many aspects of business
Yes, of course. That's why, for example, risk management is an important part of doing business but is not normally a big part of doing science...
Risk tolerance is a good, possibly more correct, way of looking at it. Actually most executives probably have a mixture of risk tolerance and strong priors.
Some businesses can get away with only relatively low-risk, safe decisions and focus on efficient operations. However, I think the majority of businesses, especially newer and growing ones, can't get away with this consistently or for a long time. And most businesses simply don't have that long a life, period.
Setting a budget based off last years' when your revenue is growing 50%+ YoY won't work well.
W...
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