How many times have you been in a meeting where someone makes an important business decision based entirely on intuition? It doesn’t inspire confidence when someone has an idea on how to increase revenue, productivity, or any other key metric for the company and it starts with, “I feel like this would work.”
They are essentially admitting that they have no evidence that this is a good solution; but, let’s throw it at the kitchen wall and see if it sticks. This can lead to unnecessary errors and biases. So, how can your organization make a conscious effort to start chowing down on numbers instead of tossing spaghetti?
More than Spaghetti on the Wall: The Benefits of a Data-Driven Culture
Data is a powerful resource, and data-driven culture is about more than just mitigating human error and biases. There are numerous additional benefits of leveraging data in your organization, such as:
- Allow employees to make educated, well-informed decisions. With a modernized data reporting process, your team can confidently back up their ideas and initiate data-based changes. By having a culture that places an emphasis on providing employees with access to tangible data, individuals can track their own progress and achievements and managers can more easily evaluate employees to help them meet their goals.
- Increase productivity. About 75% of employers say that their team spends more than two hours of each work day being unproductive. When the entire company has access to key metrics, data can become a powerful tool for motivation. When employees see how their individual efforts contribute to the larger goals of the organization, it encourages accountability and establishes an important connection between productivity and success.
- Promotes organizational transparency. Open data sharing creates a “single source of truth” and sends a message that you are committed to a culture of informing your employees and improving data engagement. It also provides an opportunity for employees to increase their understanding of the company’s metrics. The more engaged your employees are with the data, the more insights you will receive. Getting feedback form all levels of an organization can be valuable towards coming up with creative ways to solve problems.
Tips for Creating a Data-Driven Culture
Creating a data-driven culture is all about aligning data with business objectives. For every data-centric goal you produce, you have key performance indicators that you can track along the way. This process, however, is easier said than done. Here are some tips for creating a data-driven culture that sticks:
- Figure out where you are and where you would like to be. How do you want the data to present itself? Have your department managers or individual employees make a list of what data they regularly need to access and how the data needs to be evaluated. This will help you determine your organization’s most valuable metrics and data sets.
- Ensure that the correct information is going to the right people. The fastest way to get the a large amount of information to the most amount of people is through technology and tools. Dashboards can be customized to show the data that each person or department needs to regularly access. You want everyone to have access to the data they need in order to make quick, well-informed decisions.
- Start small. Figure out what works and what doesn’t. You can implement a data-driven culture by starting each department out with a small project. Determine which data needs to be shared across the different departments and put a plan in place to start making decisions based on clear, tangible data.
So stop throwing the spaghetti! Put a plan in place and begin creating your data culture so your team’s decisions will be based on clear, tangible data instead of gut feelings.
If you’d like to learn how dashboards can help support your data initiatives, leave a comment below or send us a direct email here.