Impacts of Analysis Paralysis and Good Decision-Making

Credit: Pixabay

MJ Gonzales │ Executive

No one is perfect, but being good in decision-making is a special asset especially in career and business. Most of the time, the process and outcome of projects depend on a leader’s decisiveness even there’s presence of pressure.  But how bad is bad when an entrepreneur is indecisive?

Being slow in making decision is not necessarily connected to a person’s intelligence, but perhaps, behavior. In fact, decision paralysis or analysis paralysis is one of the bad behavioral finance mentioned in “Why Smart People Make Big Money Mistakes” book that were written by Thomas Gilovich and Gary Bilsky.  The point is decision paralysis stops people to make their lives better because they miss opportunities and in effect, deal with what they only have now.

no Pixabay 1In an interview of Lifehacker with Louis C.K., the award-winning writer-director of the hit series “Louie” shared that “false perfectionism” is bait for people to not pick their choices right away.  The comedian added that his rule of thumb is if he receives 70% yes for any particular decision, he’ll go for it.

“’Cause here’s what happens. The fact that other options go away immediately brings your choice to 80. Because the pain of deciding is over,” C.K. shared on Lifehacker.  He also added that the percent would increase in no time if you combine your knowledge with it.

Meantime, the Harvard Business Review’s suggested that “Get comfortable with the unknown” and “Reduce uncertainty where you can” are ways to get away from decision paralysis.  According to them, entrepreneurs should trust their instincts and limit their data gathering.  If they able to balance these two things they would create better decisions amidst changes.

“It takes courage to walk into a situation knowing you won’t be able to judge your decisions until you’ve succeeded or failed,” HBR shared.