Why Most Advice Is Not Worth Considering

When making business decisions, we often seek advice from others. However, you may have noticed that much of the advice, though well-meaning, often lacks practical value. Why is this the case?

In this article, I’ll break down the reasons why most advice fails to deliver real insights by exploring three key factors: information asymmetry, decision-making models, and differences in values.

1. Information Asymmetry: The Root Cause of Bad Advice

At the core of every decision is information. To make an informed decision, you need access to complete and accurate data. However, most advice is based on incomplete or distorted information, which severely limits its usefulness.

1.1 The Private Nature of Information

Information is often private, meaning only you have full access to the necessary details about your business, your team, and your market. When seeking advice, external advisors are usually unaware of your specific situation. For example, if you ask whether you should fire your CTO, how can an external advisor give you meaningful input if they lack knowledge about your company’s internal dynamics?

1.2 Distorted or Missing Information

Even if you try to explain your situation to someone, it’s nearly impossible to convey all the nuances and complexities involved. Just like in a game of telephone, information gets lost or misinterpreted as it is passed along. This leads to advisors offering solutions that are based on incomplete or inaccurate assumptions, which can cause major problems down the road.

A Failure Story: My Friend's Leadership Change Decision

A friend of mine once decided to replace his company’s CTO after receiving advice from several industry experts. They all recommended the firing, arguing that the CTO was too conservative and lacked innovation. However, my friend failed to convey crucial information about the CTO’s historical contributions and strong influence over the core team. As a result, the decision led to major disruptions—several key employees left, projects fell behind, and the company’s competitiveness diminished. This is a classic example of how incomplete information can lead to disastrous decisions.

2. Decision-Making Models: It’s About Frameworks, Not Conclusions

Most people seek advice hoping to get a definitive answer to their problem. However, the real key to decision-making is not about having someone else make the choice for you. Instead, it’s about using the right decision-making model to guide your thinking. When advice lacks context, it’s likely based on instinct or personal experience, which might not apply to your specific situation.

2.1 The Role of Decision Models

A good decision-making model helps you organize your thoughts and assess different options objectively. It’s not about giving you a specific course of action; rather, it’s about helping you weigh the possibilities. For example, if you’re trying to decide whether to fire a CTO, a model might offer scenarios such as:

• Scenario 1: The CTO is underperforming, but the team beneath them is strong. In this case, reassigning the CTO to a less critical role while retaining their knowledge could be a better long-term strategy.
• Scenario 2: The CTO is technically skilled but has personality clashes with leadership. Here, working on resolving interpersonal issues might be more effective than an outright dismissal.
• Scenario 3: The CTO is using company resources for personal gain. In this situation, immediate termination and legal action would be the appropriate course.

By applying these models, you can make a more informed decision rather than relying on a blanket recommendation.

2.2 The Risk of Irresponsible Advice

Irresponsible advice often comes in the form of “You should just do X,” without considering the nuances of the situation. For instance, unless an advisor fully understands your company’s strategy, organizational structure, and long-term goals, telling you to simply fire a key executive is reckless.

Success Story: Applying a Decision Model in My Business Expansion

A few years ago, my company faced a major decision: whether or not to expand into Southeast Asia. I consulted several business advisors, and most of them said, “There’s great potential in Southeast Asia; you should move quickly.” However, instead of acting hastily, I evaluated the opportunity using a decision model. I assessed factors like market readiness, resource allocation, and cultural differences. Based on this analysis, I chose a gradual entry strategy, starting with Singapore. This cautious approach paid off, as we were able to succeed in Singapore first and then expand into other countries, minimizing risks along the way.

3. Values: Why the Same Information Can Lead to Different Decisions

Even when information and decision models are clear, values often dictate different outcomes. Your attitude toward risk, change, and uncertainty heavily influences the decisions you make. This is why even when two people have the same data and use the same decision model, they might arrive at very different conclusions.

3.1 The Impact of Values on Decisions

In business, values guide how we respond to challenges and opportunities. One entrepreneur might be willing to take bold risks in an emerging market, while another might prefer a more conservative approach, waiting for more data before making a move. Even with the same decision model, these different attitudes can lead to completely opposite choices.

When seeking advice, you need to remember that the advisor’s values will influence their recommendations. For example, if they are naturally risk-tolerant, they may push for aggressive strategies that don’t align with your more conservative approach.

3.2 Responsible Advice: “If I Were You”

Responsible advice often starts with, “If I were you, I would…” This phrasing acknowledges that the decision model is based on the advisor’s values, but that the final decision should be shaped by your own. In the end, you know your values and tolerance for risk better than anyone else, which means the final responsibility for the decision lies with you.

4. How to Use Advice Effectively

Given that most advice is limited by information asymmetry, inappropriate models, or differing values, how can you use advice more effectively?

4.1 Build a Solid Information Foundation

Before seeking advice, ensure you have a clear understanding of your own situation and try to provide as much context as possible. The more complete the picture, the better the advice you’ll receive.

4.2 Focus on Decision Models, Not Conclusions

Instead of looking for a simple answer, focus on understanding the decision-making framework your advisor is using. This will allow you to apply the model to your unique situation and come to your own conclusions.

4.3 Stay True to Your Values

Finally, never lose sight of your own values. No matter how logical or sound an advisor’s recommendation may be, if it doesn’t align with your values, it’s probably not the right choice for you.

5. Conclusion

Most advice is not worth considering because it suffers from information gaps, lacks a structured decision-making model, or doesn’t align with your personal values. When faced with complex decisions, rely on sound decision-making frameworks and stay true to your values to find the best path forward.

“Listen to the majority, reference the minority, but always make your own decision.” This reminds us that while advice can be useful, the ultimate responsibility for decision-making lies with you！