What is Data-Driven Decision-Making?
With data the new oil, being ‘data-driven’ has become a buzzword. Find out what being data-driven looks like and the steps you need to make to get you there.
With it known that data-driven organisations outperform competitors, everyone’s trying to become one. But how do you do it? The journey begins with Data-Driven Decision-Making.
Data-Driven Decision-Making is using insights drawn from reliable data that guides the decision-making process; the company’s data is collected methodically and rigorously for accuracy.
But what does Data-Driven Decision-Making look like?
It’s being data literate
The ability to read data can’t be restricted to the technical teams. Everyone, from school-leaver to C-Suite, should have a basic level of data literacy.
Data helps people become more efficient in their jobs. They’re no longer taking chances on solutions that might not work, they’ve got the evidence to show they’ve chosen the option that will yield positive results.
People need to see management leading from the front in order to be bought in. Their data-driven decision-making is visible across the organisation and impacts the most people, spreading the message of Data-Driven Decision-Making quickly.
It’s a change of instinct
Our impulse at work is to make decisions on the spot; Data-Driven Decision-Making requires us to spend time looking at the evidence first.
Where possible, fight the instinct to make quick decisions. Get your mindset into looking at data before forging an opinion. Data-Driven Decision-Making makes every decision a confident and credible one. No more trying to justify yourself at meetings, you’ll have the stats to back it up.
It’s having the right infrastructure
Without infrastructure, Data-Driven Decision-Making can’t happen. The company’s data is only usable if it’s reliable. Having multiple data sources leaves room for error. Invest in a data warehouse to funnel all your data into one store, streamlining the collection process.
Dashboards on software like Tableau helps people view large amounts of data quickly. Smart visualisation technology uses charts to make understanding data easier, no matter the technical ability.
Interactive dashboards put the power into the user’s hands to drill down into the detail, fuelling their curiosity and interest in data.
An essential part of your infrastructure is having the balance of expertise with company-wide data literacy.
But you can’t rely solely on experts; true Data-Driven Decision-Making is everyone being able to read data. People should be able to perform the analysis they need to drive their everyday decision-making.
Time to put it into practice
You can start Data-Driven Decision-Making now, even without all the infrastructure in place.
Free tools like Google Analytics are a great start to reading data. A quick Google search means that you can use other people’s results data too. Getting into the habit of searching for evidence adds a competitive advantage.
Make the most of the data around you using Data-Driven Decision-Making to help you meet your personal and business goals.
With over 20 years of experience working in the learning industry, AVADO are one of the largest distance providers in the UK. In partnership with Tableau, we’ve built a Data Academy that helps businesses thrive in the data era through building a data culture.