There is a plethora of available information in today’s world, from reports to dashboards to real-time analytics. Therefore, leaders have access to unprecedented amounts of information, however, we seem to have an increasingly difficult time finding clarity amongst all this data.
The paradox of too much information and too little clarity is certainly worthy of examination.
Conflicting Signals and Decision Fatigue
Too much information can sometimes create confusion. While there may be a number of signals, some of them are buried amongst the noise and can result in reactive, rather than deliberate, decision making.
Imagine a CEO reviewing several market reports, and one report suggests that the priority should be expansion, while another suggests that the priority should be consolidation, and yet another report suggests that the priority should be to innovate. While all of these suggestions may be valid, no one report is definitive.
The Discipline of Strategic Focus
Focusing on a concise strategic direction is necessary for successful implementation of your strategy through the appropriate filtering of data. This skill is increasingly becoming more valuable.
Establishing a small number of guiding questions is one way to filter through the noise created by an overabundance of information. Questions such as: What do we want to accomplish first and foremost in the upcoming period? What types of risks can we tolerate? What type of outcomes will indicate success? will help to narrow your focus.
Acting Without Perfect Information
An additional issue to address is the need to act quickly. Pressure to act rapidly frequently results in superficial decisions. Although this may seem counterintuitive, taking an additional moment or two before acting can lead to greater clarity regarding your decision and the benefit it will provide.
Additionally, leaders must learn to operate in the absence of perfect information. As such, it is unrealistic to wait for absolute clarity. Most decisions exist in the gray between two points.
A number of people would say that using advanced analytics to solve the decision-making problem will create great success. While it will help to solve part of the decision-making problem, it does not eliminate the need for superior judgment. Advanced analytics will assist with your decision-making processes but will not be able to independently make your decisions.
Check out: Measurable Execution as the New Standard
The human component also plays a huge role. If leaders appear uncertain, that uncertainty can manifest itself throughout an organization as a whole as their team searches for direction.
Thus, locating and providing effective strategic direction is not solely an analytical process; it is also a communications process. Leaders must have the ability to articulate the choice(s) they have made to others within their organization, even if the road ahead is uncertain.
In an environment that is full of noise, having a clear path/goal will provide the organization with a competitive edge since the path will provide guidance and assistance in navigating the complexity of today’s world, rather than eliminating it.
