Decision dilemma: When information overload hampers your business’ productivity

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.
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:
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.
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.
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.