Encyclopedia of Managerial Techniques

Paralysis by Analysis (PBA)

(Decision-Making / Risk Management Overload)

A decision-making dysfunction in which excessive data collection, risk assessments, and deliberation prevent timely action. PBA is common in organizations where avoiding mistakes is prioritized over achieving results.

Examples from practice

A board postponing a critical investment decision for years due to continuous market research and feasibility studies.

Advantages

Minimizes impulsive decision-making.

Disadvantages

Leads to missed opportunities and competitive disadvantages.

See also