Speaking as a business person: often the biggest challenge is to make ANY decision and actually DO something. The perfect is the enemy of the good. So to continue the cliches the business critique of your objections would be "analysis paralysis."
I tell you this just to help you understand what you describe. But in my observations of failure modes in business, it is rarely because one follows the wrong analysis, but more because most are unwilling to make any changes unless confronted with overwhelming evidence. (And that hurdle always gets higher no matter how much evidence you give.)
>most are unwilling to make any changes unless confronted with overwhelming evidence.
That's probably the second most common problem. I'd say 80% of my job is just fighting confirmation bias. So if someone thinks something needs to be changed, they'll take any sign that it should be changed. If someone thinks something should stay the same way, they'd argue with god about it.
I probably propose changes more often than I propose keeping things the same way, if only because testing an idea and gathering information requires making a change somewhere. I have a lot of conversations with people who are pressuring me to make a conclusion that the current way is best as soon as possible, so they can throw a lot of money at their pet project.
I'd say that most of the claims I'm being asked to make with limited evidence would be supporting the status quo, which is in line with your assessment.
I tell you this just to help you understand what you describe. But in my observations of failure modes in business, it is rarely because one follows the wrong analysis, but more because most are unwilling to make any changes unless confronted with overwhelming evidence. (And that hurdle always gets higher no matter how much evidence you give.)