Decision dilemma: When information overload hampers your business’ productivity
A staggering 91% of business leaders report that the growing number of information sources has limited the success of their organisations.
Ask what they need to make better decisions and most people will reply ‘more information’. Yet this thirst for data – and the seemingly ever-flowing torrents of supply – appear to be backfiring.
And it’s not just a hunch.
A global report from multinational technology giant, Oracle, provides alarming statistics when it comes to the complexity, delays, confusion, and distress being caused by trying to consider too much data when making decisions.
The results of this dilemma are being felt across organisations. According to the report, a staggering 91% of business leaders reported that the growing number of data sources had limited the success of their organisations.
The Decision Dilemma Global Study draws on responses from over 14,000 people across two samples, Business Leaders and General Workforce, including 1,000 from Australia. The key statistics provide a benchmark for business leaders to consider their own decision-making practices and how to identify – and mitigate – the impacts across their workforce.
Overwhelming volume of data
The report reveals that a staggering 86% of respondents find that the sheer volume of data they encounter has made decision-making more complicated. With an abundance of information at their fingertips, individuals can often find themselves inundated and paralysed by data overload.
So, what does that mean? Decision fatigue and analysis paralysis set in, thwarting timely and effective decision-making.
To overcome this challenge, business leaders need to adopt strategies to manage the influx of data efficiently.
Taking a strategic approach to collecting and applying data to support decision-making can help, so try the following:
- Define clear objectives: Before delving into data analysis, clearly define the objectives of your decision-making process. This will help you focus on the relevant data points and avoid getting lost in the sea of information.
- Filter and prioritise: Develop effective filters to sift through the data and prioritise the most critical elements. Use tools and technologies that enable efficient data organisation, categorisation, and visualisation to enhance decision-making processes. Just make sure to be transparent about the analysis and how the data has been used!
- Embrace automation and AI: Leverage automation and artificial intelligence technologies to streamline data analysis. Automated processes can help identify patterns, trends, and anomalies, enabling you to make data-backed decisions in a more timely manner.
Lack of process
When individuals are faced with a deluge of information, they can become paralysed, unable to sift through the data effectively and make timely decisions. This can hinder organisational progress and productivity.
According to the report, 70% of people have given up making a decision due to the complexity of too much data – and this increases to 89% when examining Australian business leaders.
Unfortunately, choosing not to make a decision doesn’t mean the problem goes away. Inaction is a form of decision-making in itself. Business leaders need to create and pre-empt these issues and provide clear processes and plans for organisational decision-making.
- Develop decision-making frameworks: Establish clear decision-making frameworks that consider both qualitative and quantitative factors. This structured approach provides guidance to staff and overcomes feelings of uncertainty when faced with new problems.
- Practice scenario planning: Anticipate potential outcomes and develop contingency plans to address various scenarios. This proactive approach can instill confidence, identify weaknesses and reduce the stress associated with decision-making.
- Build decision-making skills: Invest in foundational and domain-specific capability programs that build the decision-making skills of your workforce and leaders. By learning the underpinning principles of good decision-making, and how to apply various techniques effectively, you will get more consistent and higher-quality decision outcomes.
Personal wellbeing and culture
The report highlights the emotional toll of decision-making in the face of overwhelming data. A significant 85% of business leaders surveyed admitted feeling regret or guilt about a decision they made in the past year. Additionally, 88% of respondents confessed that this was an ongoing challenge they face in their personal and professional lives.
This level of individual concern about decision-making performance is creating anxiety and stress, which impacts performance across the business.
Business leaders must foster resilience and adaptability in their workforce to navigate the complexities of decision-making.
- Collaborate and seek Ffedback: Encourage your leaders to involve a diverse range of stakeholders in the decision-making process to gain different perspectives and share the ownership of decisions. Actively seek feedback and encourage open dialogue across the organisation to refine your collective decision-making approach.
- Cultivate a learning mindset: Encourage a culture of learning from mistakes within your organisation. Recognise that not all decisions will yield the desired outcomes and view setbacks as opportunities for growth and improvement. Focus on the steps in the decision process, rather than the outcome itself, to demonstrate where better practice decision-making could provide gains in the future.
- Seek expert guidance: Engage with decision-making and data professionals who have the necessary expertise to support your organisation. Collaborating with these experts can provide valuable insights and ensure that decision-making is driven by accurate and relevant information.
Problem or opportunity?
Decision-making plays a pivotal role in the success and growth of organisations. It determines the direction, strategy, and allocation of resources within a company. Effective decision-making leads to improved efficiency, productivity, and innovation, while poor decision-making can result in missed opportunities, wasted resources, and negative outcomes.
Poor decision-making practices are fuelled by a desire for more data with inadequate means to deal with the influx of information. This dilemma can significantly impact organisations, without the leadership even realising. Business leaders have the opportunity to recognise and address these issues to ensure that decision-making processes are robust, data-driven, and aligned with organisational goals and objectives.
