5 Reasons Being Data-Driven is Important
Data-driven sounds like massive amounts of work. However, all it means is keeping track of numbers and using them to inform decisions. Since there are so many electronic systems these days, most of the data gathers automatically. A business must decide to use it.
Data-driven companies have a major advantage over non-data driven ones. They have impartial numbers telling them which strategies worked, and which ones did not. These numbers do make a difference versus going on gut feeling.
Imagine being able to look at all the things the business did last quarter. There’s a gut feeling that goes with each of them, how they felt to complete. Then there’s a set of numbers with each of them, which show one or two ideas really did well with consumers. That certainly makes picking the next growth strategy easier.
While most number gathering happens automatically, some are not. Then there are regular reviews of data. When talking about combining numbers, it’s important to look at numbers in real time. That may save the business.
Looking at the numbers, it’s easier to recognize when something has gone catastrophically wrong. Each statistic offers insight into what is and isn’t working. That kind of real-time data allows a business to pivot quickly when things aren’t going well, even if its only checked weekly.
Every business owner has a passion project, just like every business division receives a goal. The objectives are planned for and the expected outcomes are written down. Then no one checks again until the report is due.
In addition to the awareness factor, data also supplies unbiased feedback. When it comes to passion projects, no one wants to see it fail. No one wants to see their division missing its goals either. However, data doesn’t lie.
Data provides unbiased feedback by design. The people using the data then can change. Sometimes that means putting the passion project on hold or recalibrating the goals. Unbiased feedback makes that possible.
Money falls into the category of something dirty in people’s personal lives. In the U.S., many people find it awkward to talk about salaries and benefits. However, businesses cannot afford to ignore the money part of the equation at any stage.
Being data-driven means there are statistics when talking about money as well. These money statistics may even dictate which projects get resources first. Businesses interested in streamlining themselves find data useful.
Certain projects may be worth a little more to the company. Certain processes may no longer help the company. Data will help companies make those decisions.
According to a Gallup poll, one of the ways to create better employees is to engage with them. These engaged employees should feel like they can make a difference in their workplace. One of the ways to ensure that happens is to use data to drive decision making. When people understand why something is the way it is, they do adopt it better.
Creating a data-driven culture does not happen overnight. However, it can take place over time. Once a data-driven culture exists, employees will be less hesitant about change. They will understand where it is coming from and may even offer up their own data to make it better. That unique way makes organizational change a breeze.
Using data to drive decisions has the potential to have multiple positive changes in the business. Using that data can potentially increase sales, cut costs, and improve the business environment. Every company should consider becoming data-driven and maintaining that culture.