Strategy is the lifeblood of any organization, and data-driven decision-making is still the best way to ensure that you are making informed choices that will produce the best results. Too often, leadership makes decisions based on gut feelings or incomplete information. This can be disastrous for a business. By leveraging information, seeking insights, and determining the best sources of information, you can make sound decisions that will benefit your organization for years to come.
Any efforts to drive a firm towards data-driven decision-making should include creating a culture that rewards evidence-based arguments, and providing a framework in which each knowledge worker is provided the support they need to obtain the information they need to back their arguments. Leaders should also be encouraged to ask for data when making decisions, and to seek out multiple perspectives before coming to a conclusion.
A culture that rewards an evidence-based approach to decision-making involves leadership and management setting expectations with their teams. Teams should be encouraged to follow a consistent template when putting forth arguments in favor or against a particular initiative. A template might include a list of pros and cons, citations from reliable sources, independently produced objective metrics, or even subjective and anecdotal survey results. Whatever configuration of the template is used matters less than the need to encourage team members to use some form of structured data when making their case.
An operating framework that enables a created culture of data-driven decision-making involves breaking down data silos. All data within an organization, produced, purchased, or in any way acquired is property of the organization, and no function or department should wall such data unless there are legal or regulatory reasons to do so. A firm that allows the free flow of information must not necessarily worry about the quality of data, especially if the data can be classified and tagged so any consumer could make an informed decision about using it. The mere democratization of data, and its availability, become a critical first step. Other steps include organizational support to purchase data subscriptions, reaching out to and leveraging relationships with industry peers, and supporting efforts to survey colleagues.
Data-driven decision-making is not a new concept, but it is often overlooked in favor of other methods. This is a mistake. Data should be at the center of every decision you make, and by using all credible and relevant information available, you can make choices that will produce the best results for your organization. Use data to drive strategy, and you will be on your way to success.