You’ve heard the buzz about becoming data-driven executive. It sounds great, right? But if you’re like many C-level leaders, you might be wondering how to actually live up to that ideal. The good news is, you don’t need to be a data scientist or spend countless hours poring over spreadsheets to become truly data-driven. In fact, the most effective data-driven executives often spend less time consuming data than you might think.
Data-Driven Executives Don’t Spend All Their Time Poring Through Data
Contrary to popular belief, being data-driven doesn’t mean drowning yourself in reports and analytics all day. The most adept data-driven executives have mastered the art of focusing on what truly matters. They’ve organized their KPIs and metrics around the most critical aspects of their business and built intelligent systems that deliver accurate, relevant data in a timely manner.
Becoming More Data-Driven Can Be Overwhelming
If you’re not quite there yet, don’t worry. The journey to becoming a data-driven executive can seem daunting at first. You might be concerned that you’re just talking the talk without walking the walk. But fear not – there’s a clear path forward, and it starts right where you are.
5 Steps to Getting Started on the Data-Driven Executive Journey
1. Start with where you are:
Identify an area of your business that’s currently underperforming. Is it sales? Production speed? Customer satisfaction? New marketing leads? This will be your starting point.
2. Start small with just one metric to track:
Transform that lagging area into a single, measurable KPI. For instance, you might choose monthly sales revenue, production throughput for a top-selling product, Net Promoter Score (NPS), or Qualified Marketing Leads.
3. Set up a data delivery system:
Find the right person internally who can provide you with access to this information. Alternatively, partner with an external firm that can assist you in setting up a reliable data pipeline.
4. Set up targets to meet or beat:
For your chosen metric, define what values would constitute “exceeding expectations,” “meeting expectations,” and “subpar performance.” Document these ranges and their meanings in your reports for quick reference.
5. Read the newly-tracked metric regularly until you get a feel for its significance:
Depending on the nature of your metric, you may need to review it daily, weekly, or monthly. Whatever the case, consume this information regularly as it becomes available. Then (and this is very important): take time out to reflect on how the most recent results should impact your business decisions.
Once you’ve gotten comfortable with your first metric, it’s time to expand. Add another KPI that either explores a different aspect of your business or dives deeper into the same domain, potentially revealing root causes affecting your primary metric.
A Call to Action: Time to Start Your Journey
Becoming a data-driven executive isn’t about transforming yourself overnight. It’s about taking that first step and gradually building your data literacy and decision-making skills. By starting small and focusing on what truly matters to your business, you’ll be well on your way to making more informed, impactful decisions.
Remember, the goal isn’t to become a data analyst – it’s to become a more effective leader. By following these steps, you’ll begin to see the power of data in action, driving real results for your organization. So why wait? Choose your first metric today and take that crucial first step on your data-driven journey. Your future self – and your business – will thank you for it.
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JLytics’ mission is to empower CEOs, founders and business executives to leverage the power of data in their everyday lives so that they can focus on what they do best: lead.
