5 Reasons Building a Data-Driven Culture is a Good Idea | Peoplelogic.ai

Is your company data-detached or data-driven? This is a key question to answer as you navigate the “next normal,” building a data-driven culture as you grow your business in the midst of the confluence of a global pandemic and economic uncertainty. In the current landscape, it’s essential that everything from your performance metrics to profitability to employee engagement is measured in a way that minimizes our inherent bias and maximizes forward-looking insights.

Being data-detached doesn’t mean you don’t have data or don’t use it regularly; it means it’s not essential to how you operate. Today, most organizations, regardless of their size, have an abundance of data-read: your teams are generating useful data points on a daily basis. But is the presence of this data being actively relied on for effective decision making? If not, here are a few reasons to pull data to the forefront of your operating procedures and incorporate it into proactively driving your business:

Creating Clarity, Reducing Uncertainty

When you have measurable goals tied to KPIs, you create clarity about where the business is going and head off uncertainty when it comes to the mission and vision. This is critical to employees feeling engaged and like their work has meaning and purpose. Data-driven management puts the right KPIs front and center and drives the team towards achieving these metrics, creating clarity in company focus and reducing uncertainty in direction.

Your Gut Won’t Cut It

Making decisions grounded in data and fact is the hallmark of a data-driven culture. When you migrate away from temperature checking your goals and truly understanding when a goal is on track or off track based on data there’s freedom in the way you operate. You abandon what “feels right” for what is truly the path forward.

Measurement Increases Engagement

The reality is, only 34% of employees are engaged at work. If we want to measurably shift this statistic, we have to operate as though we’re turning the titanic away from the iceberg and making decisions and KPIs based on what we know to be fact, not feeling. Measurement increases engagement by giving your employees a goal to work towards regardless of whether it’s revenue generation, feature enhancements, or customer retention. Carefully choose your KPIs to ensure employees feel motivated and incentivized to achieve the company’s goals, because they are their goals too.

Sharpening Your Toolset for Scale

The reality is, most individuals within your organizations want to continue to hone their skills and add value. Allowing individuals to become citizen data scientists not only sharpens their skillset but optimizes your organizational toolset when it comes to scaling. Most small companies today need to grow these skills inhouse and doing so can pay large dividends in the long run.

Transparency Breeds Trust, Trust Breeds Loyalty

Creating an organization where there’s transparency around KPIs and measurement of each function’s contributions should foster trust, not dissention. It’s a mindset shift for organizations and employees to understand that just because there are KPI dashboards scattered throughout the office, doesn’t mean managers are spying on you or limiting your autonomy. It’s simply a visual representation of the direction everyone is rowing in and an opportunity for healthy challenge when objectives are off track.

Being data-driven means you’re not ignoring the massive amounts of data your teams are constantly generating. It means you’re leveraging this data to craft a forward-looking strategy for achieving growth and scale. Embracing data-driven management is a mindset shift that starts at the top. One of an organization’s most difficult challenges is to shift the collective mindset of your people to embrace data. Be diligent and patient as you attempt to steer your team in a new direction.

Originally published at https://peoplelogic.ai on August 27, 2020.

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