Data-Driven vs. Data-Informed: Are You a Captain or Just a Passenger?

The Paralysis of "Data-Driven"

In the modern tech landscape, "Data-Driven" has become a buzzword that often masks a deeper issue: a lack of executive courage.

I’ve seen entire product teams paralyzed for weeks, waiting for "statistical significance" on decisions that common sense could have resolved in five minutes. The industry has developed a dangerous obsession with only implementing what a spreadsheet authorizes.

While the intention is to reduce risk, the result is often the opposite: The Cost of Delay.

If you wait for 100% certainty that a stock will rise, the price has already skyrocketed, and you’ve missed the opportunity. Product Management is no different. The cost of waiting for perfect data often exceeds the cost of being wrong and correcting course quickly.

The Shift: From Driven to Informed

Seniority has taught me that we need to evolve our vocabulary and our mindset. We shouldn't aim to be Data-Driven; we should aim to be Data-Informed.

The difference is subtle but brutal:

• Data-Driven: You obey the data blindly. You are a passenger, and the metrics are driving the car.
  
  

• Data-Informed: The data is just one voice at the decision table. It sits alongside market context, company vision, and—crucially—user empathy.
  
  

Great products aren't built by algorithms alone; they are built by leaders who can synthesize quantitative data with qualitative insights.

The 70% Rule (and How to Use It)

Jeff Bezos, in his early Amazon shareholder letters, popularized a concept that every Product Manager should internalize: Make decisions when you have about 70% of the information you wish you had.

If you wait for 90%, in most cases, you’re too slow.

But how do you know when to jump? You need to categorize your decisions. This is a mental model I often use (and even built into the logic of our own tools like Decisor.ai):

1. Type 1 Decisions (One-Way Doors): These are irreversible. Once you walk through, you can't go back. For these, take your time. Be "Data-Driven."
   
   

2. Type 2 Decisions (Two-Way Doors): These are reversible. If you get it wrong, you can rollback or pivot. For these, act fast with the 70% info you have. Be "Data-Informed."
   
   

Avoiding the Distraction Trap

The other enemy of good decision-making is noise. In an era of infinite dashboards, it’s easy to drown in metrics that don’t actually move the needle.

Deep analysis requires deep work. It’s not something you can do between Slack notifications. When I’m auditing a roadmap or analyzing churn, I need absolute focus to connect the dots between the numbers and the user behavior. (I personally use tools like DeepMode to lock out distractions during these "strategy sprints").

Conclusion: Take the Helm

Data looks at the past. Vision looks at the future.

If you require mathematical certainty for every step you take, you are not managing a product; you are auditing history. Real leadership is about navigating uncertainty, not eliminating it.

So, ask yourself today: Are you piloting the ship, or are you just staring at the GPS while the storm approaches?