One of the most important business lessons is also the simplest: success is often the result of making more good decisions than bad ones over time. The question is how to do that.
Are You Using Your Data, or Just Collecting It?
There’s a huge difference between understanding the importance of data and making it a priority in your organization. Every business needs experts responsible for analyzing pertinent data and helping inform employee decision-making. But many leaders aren’t taking full advantage of the analytical tools at their disposal and rely heavily on gut-instinct in situations where data provides a more complete picture. In situations without data or precedent, instinctive decision-making is likely the most viable option. But this strategy is unnecessarily risky in cases where the data shows the outcome of similar situations that have occurred in the past. Educating employees on the historical odds of decisions prevents them from making unnecessarily risky decisions and gives leadership a chance to carefully consult the data and weigh the consequences and costs of failure. Instinct still has a place in business, but it should not be the only driver of decision-making. By making data a focal point of your team’s strategic thinking, and using it to craft smart organizational policies, leaders can safeguard their businesses against unnecessary failure, and ensure that the company makes more good decisions than bad.