Decisions With Imperfect Information

By andrewneitlich

Some clients won’t make a decision unless they have perfect information, which of course doesn’t exist.

There are many ways to handle this situation, but here is one of my favorites, which a mentor of mine taught me once:

There are good decisions and bad decisions. Most people know how to separate the two.

The problem some executives get into is that they can’t decide from among a list of good decisions. They get into analysis paralysis trying to distinguish between decisions that will work out fine. In reality, it is impossible to know which of many good decisions are best.

Once you understand this situation, you can reassure the client that — since they have sorted out the good and bad options — they really can’t go too far wrong.

Ask them if there is any additional, realistically available information they can get to distinguish one good decision from another. Then ask them to either choose with their gut or flip a coin.

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