Harvard's Judgment Professor: Why Numbers Don't Make Decisions, People Do

Human judgment serves as the most critical, yet often overlooked, asset in investment and entrepreneurship, particularly as AI commoditizes data and technical analysis. Unlike static financial metrics, effective judgment is a dynamic skill developed through active risk-taking and the accountability of making consequential decisions. Serial entrepreneur and Harvard Business School lecturer Reza Satchu emphasizes that judgment functions like a muscle, strengthening only through repeated exposure to uncertainty and crisis. Leaders demonstrate true judgment by navigating unexpected challenges rather than relying on polished narratives or external intermediaries. For instance, bypassing traditional investment bankers during high-stakes negotiations allows founders to maintain direct control and process information without the influence of conflicting incentives. Ultimately, the ability to calibrate risk and trust one's own decision-making process remains the primary differentiator for long-term success in an increasingly efficient market.