Successful organizational leaders tend not to “wing” the important decisions that steer their companies. Sure, we all rely on trusty gut feelings from time to time. But data gives decision makers the facts they need to run and grow their organizations with confidence.

Do you have a data culture?

Since you need a bit of data for the most basic aspects of running a business, every company has at least some “data culture”. But companies can vary widely in their analytics approach and capabilities depending on how widespread and how ingrained the value of data is throughout the organization. It may come as a surprise that many companies, maybe even most, don’t really have a good handle on their data.

Some companies have key performance indicators but can’t effectively measure them. Others have the data that leadership needs but no one knows who has it or how to get at it. Still others have the data but it’s only good for historical reporting and doesn’t help set a path forward. (Which quite frankly is like driving while staring in the rear-view mirror.) These things all require establishing a good analytics culture.

A data culture is the key to success

Treating your data as a critical business-shaping asset is key to navigating a path to future growth. As a leader, having a healthy analytics culture in your organization makes it possible for you to get real-time visibility and understanding on a wealth of critical information: production volumes, quality concerns, what products are selling, and what’s limiting growth. it will also help you know the health of your supply chain, how competitors are impacting sales, what advertising is working, and what customers truly value.

Leaders that embrace analytics and incorporate data into their decision making get better results.

Leaders are the key to a data culture

What’s the single most important factor in establishing a thriving analytics culture that enables this incredible business foresight? Leadership commitment.

Executives lead by example. The ongoing investment, infrastructure, and refinements needed to maintain an analytics culture require long-term commitment. It’s a marathon, not a sprint. A company cannot build a successful analytics culture unless the corporate leadership embraces analytics and integrates it into their ongoing decision making and workflow. Leaders that embrace an analytics mindset create an environment where data becomes an integral part of the organizational DNA.

Plus everything else

Of course, other factors are necessary to have a culture based on data-driven decisions take root. You need the right tools and technology to collect, store, analyze, and share data effectively. Data literacy training to explain the basics of data analysis and its importance are required. Processes on data use, management, and governance also need to be established. Other components that boost data initiatives might also need to be considered, like effectiveness reviews, reward incentives, and collaborative workshops. But, without leadership encouraging its adoption, any analytics-based initiatives are likely to fizzle out over time.

Get Good Goals

Executives or CEOs who want to use analytics to drive the business can start by have a clear understanding of organizational goals. Those goals might be as straightforward as “reduce costs by 15%” or “grow revenue by 50% in five years”. Perhaps they are a bit more nebulous and require a deeper dive like “reduce risk” or “increase customer satisfaction”. Either way, lead the way by hosting workshops to clarify goals and align everyone on the specifics. This process frames up objectives and translates them into measurable metrics.

Prioritize Access and Understanding

It’s also important to establish how people interact with data. You don’t want it tucked away in Excel spreadsheets or buried behind cryptic database queries. Instead, develop tools – dashboards, mobile apps, email/text alerts, or other visualizations – that are simple to use, easily understood, and readily available. These tools should be so intuitive that anyone, from the top executives to the folks on the production line, can ask questions and get answers without feeling like they’re deciphering ancient scrolls.

Wrapping Up

This is a good place to start to get an analytics culture underway. But don’t touch that dial. I have a lot more to say about this topic. Stay tuned: I’ll be following up with other blogs to help your company build data-driven expertise.