Not Making a Decision is a Decision to do Nothing

“In God We Trust, Everyone Else Bring Data”, read the sign outside the office of one of the Dell executives with whom I worked. His mantra was reasonable and compelling as data-driven decision-making is a sound business practice. Over the years, however, I have found that living by this creed can be at times productive and counter-productive. So how could data-driven decision-making be counter-productive? Simple: when you do not have the data.

In the "limited” or “bad data" environment, where we find ourselves from time to time, managers who live by the “we must have data!” motto are crippled by their inability to make decisions. Have you ever heard the statement, "We can't make that decision until we have all the data?" If you have the luxury of putting off or not making a decision, then wait. However, business needs or competitive pressures often require that we make a decision regardless.

What should you do in this situation? I recommend that you enlist the most knowledgeable team members about the decision and walk them through a structured process of soliciting, debating and synthesizing their judgments. You've made an investment in these team members for their knowledge and experience; it’s time to get a return on that investment! You will find in the absence of data, your knowledgeable team members inform your decisions far better than you think. Ultimately, as my current colleague reminds me, “Not Making a Decision is a Decision to do Nothing”.