Three Ways Leaders Can Avoid the Analytics Trap

Has this ever happened to you??You’re making a purchase decision online but you're uncertain which product to choose. You search “Top 10” and your screen fills with lists and then POOF! --- as if by magic -- hours have VANISHED as you end up deep into evaluating all your options.

Unfortunately, in this data-rich online world, overanalyzing choices can sometimes get the best of us. And when it’s just a choice of running shoes or a new garden hose, a little time lost in decision-making may not be a big deal.?

Yet, when leaders get stuck making decisions that affect their entire organization, overanalyzing can have real consequences.?

In a world of uncertainty, data is considered the new oil. We believe that with more information, we’ll make better decisions.?

According to IDC, businesses spent a whopping $215 billion in 2021 on big data and business analytics solutions. From analyzing your customers' experience to employee sentiment to operational improvements to supplier performance, data analytics CAN provide fascinating insights well as rude awakenings.?

What if seeking MORE data and MORE analysis becomes a convenient way for you to PUT OFF making an important decision??What if you are ignoring the information you don't like and seeking data that will confirm your own (possibly flawed) opinion?

If so, you may be getting caught in the "Analytics Trap".?

In my own work with CEOs, boards, and leadership teams striving to get results faster for high-stakes strategies, I often see leaders lose critical time when they are struggling to make a decision.

Of course, when the consequences are high, you want to make sure you’ve done your homework. But in doing so, you can easily fall prey to overanalyzing all sorts of solutions and the data associated with them.

And when decision-making is done as a group, even more data and more opinions will surface. And it can DROWN your team.

Making decisions quickly in times of uncertainty is a critical skill for leaders.

As Lee Iacocca, former CEO of Chrysler, once challenged, "So what do we do? Anything. Something. So long as we just don't sit there. If we screw it up, start over. Try something else. If we wait until we've satisfied all the uncertainties, it may be too late."

In these situations, a big picture or “meta” approach can be helpful when you find you are losing your way in data analysis overwhelm, and are burning valuable time.

Here are three straightforward questions to help you step back and think more clearly when you find yourself in the Analytics Trap:

1. WHY??

Getting REALLY specific about the problem you are solving can make space for clearer thinking. WHY can provide “breathing room” for your decision process.?

One of the best ways to deal with overanalyzing is by asking the right questions and transparently prioritizing. Continue to challenge yourselves?“Exactly what problem are we trying to solve?”

This makes it easier for you and your team to differentiate "critical to have" from “nice to have” information and to stay focused on just what is needed to make a good decision.?

2. WHY NOW??

Are you clear on why this decision needs to be made NOW? Without urgency, analysis can continue endlessly.

One of the most important “meta decision analysis tools” you have in your tool chest is a DUE DATE!

Setting a deadline for your decision will guide other decisions, such as: how many more new options you have time to consider, how many more people you can involve, and even how many more sleepless nights you can afford until you make your decision!?

It sounds crazy, but simply setting a deadline -- and sharing it with others so you are accountable for it -- enables decision making to feel simpler.

3. WHAT IF?

“What If Thinking” can help leadership teams get better prepared to speed decision making and take action -- even with incomplete data.

Kickoff your new initiative by systematically thinking through the assumptions and risks upfront. What assumptions need to prove true for your strategy to be a success? What data do you need to prove those assumptions true??

Discuss as a team what you would do in a variety of scenarios, and agree to the MINIMUM data you will need to have, as well as the default plans you can put in place.

This will help you and your team prioritize, and be able to DECIDE QUICKLY when there are early indications of change and data is not easy to come by.

~~~~~~~

Yes, if you are leading a high-stakes strategy and find yourself lost in myriads of data, you may be caught in the Analytics Trap.?

But instead of getting lost in the details, and using more data and more analysis as an excuse for putting off an important decision: ASK BIGGER QUESTIONS.

What do you think? Could these approaches work for your organization?

I’d love to hear your thoughts.

All the best – Susan

P.S. If you are leading a new strategy, or getting an initiative back on track, check out our?De-Risk System for Impact. It's a practical way to anticipate the risks of your strategy and put a plan in place to address them. Happy to discuss how they might apply to your situation.

Your mission is too important. Don't let it get derailed.

Susan Schramm, Founder, Go to Market [email protected]?