Information Management for Decision Making in Business

Information management in business means collecting, checking and sharing the information you need to make good decisions. Leaders who manage information well make fewer decisions on guesswork, and the eight questions below help you check your data before a decision and share it with the right people.

information management hero: a funnel with a gold drop

Information comes from inside your organization and from outside it, through industry publications, professional associations, the news, customers, vendors, consultants and training. Technology now handles much of the collecting and storing, but someone still has to decide what's worth using.

Data won't replace good judgment. There will still be times when a leader has to go with their gut, but when decisions are routinely made without real data behind them, the risk of an error in judgment goes up. Trust your gut when it's appropriate, and when you have data that could help, use it.

Before you rely on any information for decision making, verify it. Information can be outdated, entered wrong or, now and then, changed on purpose, and a decision built on bad numbers is still a bad decision. Protect the data you keep too, because a breach can bring financial and legal risk.

Good information management practices lower those risks. The eight questions below take you from checking the data to sharing your decision, and they work whether you're choosing a new vendor or changing a schedule.

Jump To: 8 Questions | Example | FAQ

8 Information Management Questions for Better Decisions

Information management decision making works best when you answer these questions each time information lands on your desk. They help you judge the value of the data and plan how you'll share what you decide, and together they form a simple information management process that supports decision making from start to finish.

What's the key message or call to action? Ask how the information supports your organization's priorities. If it doesn't, question its value, and consider setting it aside so it doesn't add to the load.
What data supports the key message? Take the time to identify, collect and understand the data behind it. Once you've checked where it came from and how current it is, you'll have more confidence in your decision.
When does the information need to be shared? Decide whether it's time-sensitive or confidential, and set priorities to match. Old data adds risk, and as the saying goes, "Data ages like a fish, not like wine."
How will you present the supporting data? Once you've made your decision, share the data that helped you make it in simple terms. Explain the process you followed and the high-level findings without going so far into the details that people get lost. Sharing it this way teaches your team and builds your credibility.
Who's the audience? Decide whether there's more than one, and work through the same questions for each. Coordinate the timing, because sharing from the top down usually brings the best buy-in.
How will you communicate it? Choose email, a printed memo, a phone call or an in-person meeting, and plan when each group will hear it.
Carry out your communication plan. Stick to the plan and hold everyone involved accountable for their role.
Gauge the response and follow up. After you share the message, keep your ear to the ground and make yourself available for questions, so your team understands the decision and what you expect from them.

“Where there is data smoke, there is business fire.”

- Thomas Redman

Information Management in Practice

MARISOL'S SATURDAY DECISION

Marisol is the operations manager at a 20-person heating and air conditioning company. Two technicians asked about working Saturdays, and she wanted to know whether customers needed it before she changed the schedule.

She pulled six months of call logs and found an average of 30 Saturday service requests a month being booked for Monday. Before she used the number, she checked it with the dispatcher, who estimated that about 10 of those customers a month canceled and called a competitor instead of waiting.

She decided to add Saturday hours from 8:00 to noon with a two-person crew. She told her two crew leads first and gave them a day to raise concerns, then announced the change to the technicians with two weeks' notice and a one-page summary of the call data.

After the first month, the Saturday crews had handled 34 calls, and Marisol checked in with both crews before making the schedule permanent.

Marisol's decision came from data she checked first, and the order she shared it in gave the people most affected a chance to weigh in.

Information Management FAQ

The questions below address what leaders most commonly ask about information management.

Click on the (+) sign below to expand each question. Click the (-) sign to collapse it again.

What is information management in business?

Information management in business is the way an organization collects, checks, stores and shares the information it uses to make decisions. It covers everything from sales reports and customer feedback to industry news and vendor data.

How does information management support decision making?

It makes sure the information behind a decision is accurate, current and tied to your priorities. Good information management also helps you share the decision with the right people at the right time, which makes it easier to carry out.

What is the role of information in decision making?

Information shows you what's happening, so you can rely on more than memory or a hunch. Judgment still matters, and the best decisions usually combine reliable data with a leader's experience.

What makes information management effective?

Effective information management starts with checking where data came from and how old it is. It also filters out information that doesn't support your priorities, presents what matters in simple terms and follows a clear plan for who hears what and when.

What should a leader check before using data to make a decision?

Check where the data came from, how current it is and whether someone who knows the work agrees it's accurate. If it's old, incomplete or can't be verified, treat it with caution.