A data-driven executive relies on statistics to understand trends, identify opportunities and make informed decisions. Companies under such executives are 23 times more likely to acquire and maintain a greater number of clients than competitors under non-data-driven management.
Despite the benefits of using data to inform business functions, in 2022 the average company analyzed less than half of all its collected data. This suggests that not many managers leverage the power of data when making business decisions.
While there are many barriers to adopting data-driven decision making, a common obstacle is often that leadership finds it difficult to transition to using data for decision making, either because it’s a new way of doing business or there are an overwhelming number of moving parts to coordinate. If data-hesitant leadership or management is the reason that has held you back from evolving or scaling your business, below are some easy ways to help nurture data-driven executives to lead to better business outcomes.
Getting Into the Right Frame of Mind
Being the person in charge of a business often means executives are expected to have deep experience and answers to any situation at the ready. This can make executives hesitant to demonstrate when they need to add new tools to their leadership skill set. Becoming a data-driven executive starts with having an open mindset. Executives must be willing to embrace novel, data-driven approaches even if they go against traditional thinking or ways of managing. Understanding that moving the organization–from teams to processes to —into data-driven Possibly remove this section about looking into a program?
Data Literacy Training
Enrolling in a data literacy program should be the first step to becoming a data-driven executive. The training will enable you to use data with fewer issues and instill the confidence you need to rely on data when making decisions. There are various training formats to meet the needs of your schedule. You can check with your local community college or universities to see what classes, professional development or certification courses they offer in data literacy. There are also private online learning options structured to allow students to study at their own pace and time, which can be convenient for those who are unable to commit to class meetings at a particular time.
Seek Mentorship From Seasoned Data Experts
While a data course offers great basic training for understanding how to leverage data in business processes, working with an experienced mentor will help to develop confidence in decision making and execution.
Mentors can help you understand the dos and don’ts of using data and help you understand how to best use data to drive growth. Their wealth of experience using data in various applications and across different industries is an incredibly useful resource when it’s time to execute on developing a data-driven culture, especially because getting organizations to adapt to such change is often cited as a leading challenge in taking a data-driven leadership approach.
When choosing a mentor, find one with a strong understanding of data and its applications in driving business outcomes, and particularly within your industry if possible. Other important aspects to consider when choosing a mentor include the following:
Availability
Ensure your potential mentor has enough time for the mentorship relationship. The availability will save you the stress and inconveniences of postponing mentorship sessions simply because your mentor has a busy schedule.
Communication Style
Choose a mentor whose communication style resonates well with you. Look for someone who can explain complex concepts in a way that is easy to understand and is open to answering questions and providing guidance.
Personal Connection
While expertise and availability are necessary, finding a mentor with whom you have a personal connection is also helpful. A robust personal connection will make the mentorship relationship more comfortable.
Build a Data-Literate Team
As a data-driven executive, you’ll have to involve other team members in using data to make decisions. Therefore, it’s important to ensure your employees have sufficient data literacy.
In-person data literacy training tends to work best for larger teams as opposed to virtual or online learning courses. Hosting a company-wide data literacy session or ongoing series of sessions ensures the entire organization receives the same, standard data training at once.. Many colleges, industry leaders and consultancy firms offer in-house data training customized to the needs of various organizations.
Invest in Data Infrastructure
Data infrastructure is an essential pillar in becoming a data-driven executive. It helps you collect, manage, analyze, and secure the data needed to make critical company decisions. Without the right infrastructure, you’ll face difficulties using data to streamline decision-making.
Some of the most critical infrastructures to invest in as you plan to become data-driven include:
- Data storage infrastructure: Storage infrastructure includes all systems and technologies for managing large amounts of data. The infrastructure consists of databases and data lakes.
- Data governance: Data governance infrastructure includes the policies, procedures, and technologies that safeguard the quality, security, and compliance of data. They could include data dictionaries, lineage tools, and quality tools.
- Data visualization: Data visualization infrastructure includes tools and technologies that enable the visualization and presentation of data in a clear and meaningful way. The infrastructure consists of dashboards, charts, and graphs.
- Data analytics: Data analytics infrastructures are technologies for analyzing and extracting insights from data. The tools include statistical analysis software, machine learning platforms, and predictive modeling tools.
- Data security: Data security infrastructures are technologies and processes that protect an organization’s data from unauthorized access, breaches, and other security threats. The infrastructure includes systems for encryption, data masking, and access control.
Cultivate a Data-driven Culture
After training your entire team and investing in data infrastructure, focus on creating a data-driven culture to support your agenda — becoming a data-driven manager. The culture will set a norm where everyone in the organization views data as a valuable asset.
Furthermore, the culture will ensure that every team member uses insights from the analyzed data to inform actions and strategies. To create a successful data-driven culture within your organization, use the following ideas.
- Communicate the importance of data: Explain to your team why data is a valuable resource for your organization. In addition, explain why every team member should rely on data in decision-making and problem-solving, rather than using their own reasoning.
- Encourage data-driven problem-solving: Ask all your team members to rely on insights from analyzed data to identify and address various business issues. Furthermore, provide the tools and resources they need to use data comfortably.
- Recognize and reward data-driven achievements: Recognize and reward team members who make significant contributions using data. The recognitions will help encourage a culture of data-driven innovation and achievement within your organization.
