Is there a decision you just can’t make? 

You’ve been collecting data, gathering information, asking for insight, but you’re still not comfortable making the decision. If you could only get a little more data or reach a consensus, you’d feel better about moving forward, right? 

The truth is, it isn’t a lack of data that’s postponing your decision. 

If you’re suffering from analysis paralysis, it’s because you’re afraid of making a mistake. 

Why Mistakes are Great

When leaders are paralyzed by indecision, their inability to move forward is based on fear. This can take the form of over-analyzing the situation or trying to manage by consensus. Either way, they’re afraid of the outcome so they’re delaying a decision.

What are leaders afraid of?

For most people in these situations, they’re afraid of making a mistake. 

They continue to gather intel in hopes they can ultimately have enough information to avoid potential mistakes. Other leaders rely on management by consensus as a means to avoid mistakes. They assume if everyone agrees on the decision, it must be the right one. 

It’s time to re-frame the way we view mistakes. 

Mistakes are marvelous. 

In fact, making a mistake is one of the best ways to learn. We try something, we make a mistake, we fix the process, then we move on. 

To move forward, you have to be willing to make a mistake. Mistakes are not equal to catastrophes. In reality, you can likely overcome any mistake you’re willing to make. 

How can we overcome the fear? 

To unwind this paralysis, consider your worst-case scenarios. Use role-play to expand on the potential consequence for making the wrong decision. Ask yourself: 

What’s the worst thing that could happen? 

If that happened, what would I do about it and how would I fix it? 

Generally, people find their worst fears are pretty fixable. 

How Risk Affects Your Business Model

If your fears are irrational, it’s time to move on to a discussion about risk.

Once you’ve named your fears and played out your worst-case scenarios, it’s time to consider your risk tolerance. For those with irrational fears, it may not be realistic fear that’s driving your indecision, but your risk-aversion — you have a low level of risk you’re willing to tolerate. 

Think of your business in terms of how risk-averse you are. 

What risks are you willing to take? 

What risks are you not willing to take? 

Build a business model that works around your willingness to take risks. When you clearly state your risk tolerance and eliminate anything that exceeds your tolerance for risk, you prevent analysis paralysis. Decisions that once kept you in knots are no longer a discussion because the decision has already been made. 

If it’s outside your risk tolerance, don’t do it. 

The Easy Way to Overcome Analysis Paralysis

Overcoming your analysis paralysis sounds simple, right?

It is. 

If you’re suffering from the inability to make a decision, identify the source of the problem. You’re probably afraid of making a mistake. If you can’t pinpoint a realistic mistake, you may be entertaining risks you’re simply not willing to take. 

That’s okay. 

Once you understand these concepts, start applying them to your business decisions. Ask someone else to help you figure out your risk tolerance and help you find ways to overcome your fears. Then, you can move from a fear-based mentality to a risk-based assessment.

When you understand what you’re willing to risk, you’ll feel the freedom to make mistakes you can tolerate and manage. Don’t let fear stop your progress. Only when you’re willing to make a mistake can you truly move forward.