In this podcast, Doug Hicks emphasizes the importance of using accurate and effective models in corporate finance to make better business decisions. It highlights that while people create models to understand complex phenomena, the quality of these models directly impacts decision-making. The discussion contrasts outdated models with modern economic cost models, arguing that businesses should use forward-looking, causality-based economic cost models rather than backward-looking cost accounting models. Such economic models, which accurately project costs and consider future impacts, are crucial for making informed and effective decisions in organizations. For more information, visit PACE at www.profitability-analytics.org