Developing A Data-Driven Strategy Right For Your Business

Data has always been one of the driving forces behind business decisions. In the simplest terms, anything that can be seen to make revenue go up is good, and vice versa. In today’s technology-based world, however, the sheer amount of data available to your company is a treasure trove if you harness it correctly. Unfortunately, not every enterprise knows how to make the most of this embarrassment of riches. The preponderance of information that exists today means it takes more than the occasional glance at a chart to wield it correctly.

Your company needs to have a culture that utilizes data as one of its cornerstones. Otherwise, the strategies you develop based on it may not be as successful. Here are some tips you can use to ensure you have the data-driven solutions you need.

Lead by Example

Managers and leaders who are seen to make their decisions based on facts and hard data inspire their teams to do the same. Those who let emotions or hunches drive their choices create a culture in which valuable information may be ignored or overlooked, whether they intend it or not.

Don’t Silo Your Information

When everyone across all levels of your organization has access to the same data, it means they’re all on the same page. At the same time, anyone you have on staff whose job it is to analyze information should be included in the decision-making process. Making everything as accessible to everyone as possible reinforces the idea that your data should be front-and-center any time a choice has to be made.

Realize There Is No Surefire Answer

Although data provides you with much stronger position from which you can make decisions, it’s also important to note that it is never as simple as one plus one equaling two. Most business issues are complex and may have multiple “correct” solutions. This means those who utilize information to arrive at their choices must be able to explain how they reached their answers to the rest of the team. Not only does this improve communications between stakeholders, but it also ensures that everyone sees and understands the value of data instead of dismissing it out of hand.

Use Metrics Internally as Well as Externally

Most of the focus when it comes to metrics tends to be on the customer side, measuring satisfaction, revenues, etc. However, there is a lot of value that can be found in applying analytics to your internal customers — i.e., your employees. By tracking your team’s effectiveness at key performance indicators and sharing that information with all involved, you demonstrate to them how analysis can lead directly to improvements.

Making use of the data your company collects is critical for success and requires the creation of a culture that enables strategies to be driven by it. To see some examples of how this philosophy can be applied in terms of internal training efforts, see the accompanying resource.