In this article, we will discuss the roadblocks to avoid when transitioning your organization to becoming more data-driven.
With how much we promote that becoming a data-driven organization is better for you in the long run, we also know that if done improperly, it can cost your company financially, without reaping the benefits.
The fact of the matter is that mistakes can be costly. If you don’t have the right numbers coming in, if your data isn’t correct or verified and you are making decisions based on that data, it can cause you to move in the wrong direction. Imagine not having all of the data you need and making important business decisions based on missing or critical data.
If you don’t have expertise from a data perspective and are just moving into this area, a direct tie to ROI can be ambiguous. It may be difficult to determine on your own. This can be an area where in the beginning you need to marry gut vs. numbers and verify what data you are receiving. Additionally, getting advice from experts in the field will also ensure you are covering your basis.
Another issue that may arise is that you are looking at becoming a data-driven organization as a cost to the organization vs. the return on investment that you may get from the activities. Focusing on the return and desire from being focused on decisions from data, will help you set goals for the team members that are working on this initiative.
As you are on the road to becoming data-driven you might decide to hire people specializing in data. The challenge with this is that it can be expensive and often, they aren’t familiar with your industry. This also gives you a tendency to rely only on those hired individuals and not all of your teams, transforming the culture. A complementary approach is to train current employees and find data champions that know your business and systems and can influence front-line employees to help input the best data possible for decision making. When bringing in experts, make sure they can guide and train your team vs. working in a silo.
Last but not least, there are a lot of technology solutions out there that claim that they are data-driven. Many are great and will work, but some might not integrate with the systems you have. It is best to take the approach of crawl, walk, run and first pull data with the systems that you have in place. You will naturally start to see gaps and be able to create a requirements list of what you need in a technology solution. Once you have this list you will be better equipped to make the right decision on technology, if it is needed.
All of these are potential roadblocks that can get in your way to transforming your organization into a data-driven culture. For more information or help with your transformation, book a free consultation with our team.
For many, a visual aid assists in creating a mindset of where you are going. We believe strongly in visual aids being essential to a transformation journey regardless of the industry. This is why we have created a data-driven pyramid.
In this article, we will discuss what goes into making decisions from the data you gather and how you might want to approach your data-driven decision-making as a team.