We Want Better Decisions, So Why Do We Focus on Information?

Most would say that information helps us make decisions. Since we live in a time where information is almost free, and we have more of it than ever, you would then think that decisions would be easier and more reliable than ever…

But most would also agree that isn’t necessarily the case.

Since we could say that the best leaders make the best decisions, it makes sense to unpack and better understand the relationship between information and decisions.

As I said before, we “know” that information can aid decision making. The problem is that insight gets misinterpreted in three different ways:

• When we have too much information
• When we don’t have enough (or any) information
• When we think information is all we need

When We Have Too Much Information

We have a word for too much information: overload.

Information overload is more prevalent now than ever – thanks to the internet and its new stepchild, AI. Information being nearly free and extremely plentiful is helpful in making decisions until overload happens. To make better decisions when we are awash in information means we need to:

• Start with the decision, not the data. Ask yourself, what am I deciding, or what am I solving for? This helps bring clarity and narrows the information gathering right at the start.
• Parse and prioritize the data. Once you are clear on the scope of your decision, you can further narrow your inquiry and data acquisition.
• Look for two kinds of evidence. The support for the decision and the evidence that might de-confirm that position.
• Recognize a good decision vs. a perfect one. More information might well have diminishing returns, and besides, perfect information might not exist (more on that in a minute).

When We Don’t Have Information

For all the information we have at our disposal, sometimes things are unknown and unknowable. How do we deal with those situations when we need to make decisions?

• Acknowledge the reality. If the information doesn't exist, stop trying to find it. Recognizing this is the key to better decision making.
• Consider different lenses. Maybe you don’t have all the information you wish you could get. But you can look at your situation in new ways. Here are three examples: think short and long term; think internally and externally; think financially and culturally.
• Look beyond the data. Talk to other people and ask them what they think. Value the information and perspective of others too, remembering that is information too.
• Try and learn. Most decisions don't have to be final. Try decisions as tests and to learn things. Then use those results to make new and better decisions with that new information.

What Do We Need More Of?

While information is important, it isn’t the only, and maybe not the most important, input to better decisions. If we need more than information, what do we need more of?

• Experience. Experience can be a powerful aid in making new decisions, if we don’t operate solely on habit.
• Insight. Insight comes from applying principles and deep truths and understanding the context surrounding the situation.
• Perspective. Perspective comes from seeing the situation surrounding the decision in a variety of ways, including the perspectives of others.
• Wisdom. Wisdom is the combination of these other factors merged with salient and valuable information.

Information and knowledge are important but are far from all we need. That is why we must focus development efforts beyond traditional knowledge sharing and skill development. If you want to help develop your leaders as better decision-makers, let’s talk.