How CEOs can lead data-driven transformation

In the current era of worldwide economic and political uncertainty, CEOs are dealing with many uncertainties as they ride out the pandemic’s impact and adjust strategies to emerge a winner.

Against this backdrop, there is a growing recognition of the importance of data analytics in influencing key decisions and directions in this challenging marketplace.

There are many core business areas, such as production, distribution, sales and HR, where accurate data can eliminate previous guesswork. Here are three ways that CEOs can build a strong, data-driven organisation.

1.   Create a data-led culture

To successfully implement data analytics, the CEO and leadership team need to create a data-driven culture that extends right across the organisation. Traditional information silos need to be broken down, with information shared company-wide where relevant.

Make sure everyone gets it. CEOs and leaders who are shifting the business towards a data-driven culture need to ensure that all staff, no matter how non-technical, understand the ‘why’ and the benefits.

Educational programs are integral to a successful data-centric shift. People need the knowledge and skills to understand why the transformation is needed and the opportunities it opens up.

Once again, it starts from the top. If your CEO isn’t familiar with data analytics, arrange for coaching and training from your data team or an outside specialist.

Set up upskilling and training that address any knowledge gaps or anxiety for your staff, explaining how to collect and analyse data in their own area of responsibility. Training is essential in not only giving employees confidence and new skills in using data, but in gaining their commitment to an overall data and analytics approach.

2. Build a company-wide analytics mindset

Leaders inspire others with their actions. When senior managers are seen basing their decisions on data, their team members will see the value of this approach and adopt it, too. The CEO must be seen giving data-based insights more attention than gut feel and seniority. 

One of the first steps towards more collaboration is simply providing access to data at all levels of the organization, also known as data democratization. In the 2020 Global State of Enterprise Analytics Report, for the U.S. respondents, 81% of executives and managers had access to data, but only 44% of frontline workers had access. 

Business leaders provide the framework and direction for their people to follow, showing employees how data tells a story, and how to extract its knowledge and analyse it. Across all departments, businesses should encourage teams and individuals to use data in discussions, obtain feedback and accurate numbers and insights, and share data rather than hoard it in ‘silos’.

One important question for both management and employees to ask is what problem they need to solve by using data? Show people how data is another technological solution for problem-solving, driving growth, improving productivity, or lowering costs or risks.

3. Lead by example

Good leaders inspire their people with their own actions and accordingly, the CEO’s role in an organisation’s transformation is an important one. If the CEO isn’t clearly committed to data-driven decision-making, the cultural shift will probably fail across the company.

Managers and employees will follow the lead of a CEO who is making sound decisions driven by data-based insights, rather than ‘gut instinct’ or because ‘how we’ve always done it’. As well as the CEO, the C-suite should be leading the culture shift and in charge of data analytics training and awareness across the organisation.

The CEO should also lead from the front in internal communications and meetings, referring to existing data, asking what data backs up decisions and planning, and encouraging everyone to adopt a data-driven approach. When senior management base their decisions on data, team members will see the value of adopting this approach in their own areas of responsibility.

In conclusion

By leveraging data analytics to identify their core challenges and opportunities and make data-driven decisions, today’s CEOs are successfully guiding their business into the future. Talk to us about how your business can also take a top-down approach to using data across the organisation. 

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Sources:

https://quanthub.com/a-data-driven-organization-how-to-build-it-in-3-essential-steps/

https://treehousetechgroup.com/3-ways-ceos-can-use-business-data-for-decisions-instead-of-guesswork/

https://home.kpmg/xx/en/home/insights/2019/04/dont-doubt-the-data.html