PHILADELPHIA ( MainStreet) -- So here's the challenge: There's either not enough information or there's too much information. Is there ever "enough" information?Business school professors respond to student pleas for more data with the short and apt "Management is the art of making decisions with inadequate information," evading offering an opinion about a case study.
At its core, analysis paralysis is the inability or unwillingness to act because of an inclination to further analyze a situation. But when is it a stall tactic and when is there a serious need for additional research? It depends on two things: consequences and criteria. Decisions frequently need to be made by a certain moment or there will be consequences. Examples include:
- Buy equipment by a certain date or the price will go up;
- Renew a contract by a certain date or the terms will change;
- Accept a job by a certain date or the offer will be made to someone else.
- Hiring decisions based on experience, education and fit;
- Equipment decisions based on price, functionality and quality;
- Stock purchase decisions based on price-to-earnings ratio, dividend and performance.
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