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How do you use data to support your decision-making process?

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Data is a powerful tool for making better decisions, but how do you use it effectively? In this article, you will learn some practical tips and techniques for using data to support your decision-making process, from defining your problem and objectives, to collecting and analyzing relevant data, to communicating and implementing your decisions.

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Gary F.

Co-Founder, Entrepreneur, CTO, Solutions Architect, Advisor and Board Member

1 Define your problem and objectives

Before you dive into data, you need to have a clear understanding of what problem you are trying to solve and what objectives you are trying to achieve. This will help you narrow down your focus, identify your criteria and constraints, and formulate your research questions or hypotheses. A good way to define your problem and objectives is to use a framework such as SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) or OKR (Objectives and Key Results).

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赵新进

Leadership blogger, Aspiring Writer, Photographer, Marathon Runner
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When major transformational changes or strategic decisions need to be made for any organizations, especially during time of changes or uncertainties, the organization would need leadership to create a vision based on judgement. Supporting with data is important but change would not occur without the vision. President John F. Kennedy did not have the data when he announced before a special joint session of Congress on May 25, 1961 the dramatic and ambitious decision of sending an American safely to the Moon before the end of the decade.

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2 Collect relevant data

Once you have defined your problem and objectives, you need to collect data that can help you answer your research questions or test your hypotheses. Depending on your situation, you may need to use primary data (data that you collect yourself) or secondary data (data that already exists from other sources). You also need to consider the quality, quantity, and variety of your data sources, and how to access, store, and manage your data securely and ethically.

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3 Analyze your data

After you have collected your data, you need to analyze it to find patterns, trends, insights, and evidence that can support your decision-making process. You can use different methods and tools to analyze your data, such as descriptive statistics, inferential statistics, data visualization, or machine learning. You also need to be aware of the limitations, assumptions, and biases that may affect your data analysis, and how to validate, verify, and interpret your results.

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4 Communicate your decisions

Once you have analyzed your data, you need to communicate your decisions to your stakeholders, such as your team, your manager, your clients, or your customers. You need to present your data in a clear, concise, and compelling way, using appropriate formats, such as reports, dashboards, charts, or infographics. You also need to explain your methodology, rationale, and recommendations, and how they align with your problem and objectives.

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Tott Mitchell

Business Analyst
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In my experience, communicating the decisions that I made to my team has to be clear and that the team understands. By using data, such as reports, charts, etc., are tools that will show clarity to why I made the decisions. I will explain and show the methodology needed to be successful in the decision-making process. This way the whole team can see the whole picture.

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5 Implement your decisions

Finally, you need to implement your decisions and monitor their outcomes. You need to plan and execute your actions, such as launching a new product, changing a policy, or improving a process. You also need to measure and evaluate the impact of your decisions, using indicators such as key performance indicators (KPIs), metrics, or feedback. You also need to review and adjust your decisions based on the data you collect and the feedback you receive.

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6 Learn from your data

Using data to support your decision-making process is not a one-time event, but a continuous cycle of learning and improvement. You need to reflect on your data, your decisions, and their outcomes, and identify what worked well and what can be improved. You also need to update your data, your problem, and your objectives as your situation changes, and apply the lessons learned to your future decisions.

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Christopher Lind

Bridging Business, Technology & Human Experience | Executive Advisor | Business & Product Transformation | Devoted Husband and Father of 8
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I cannot emphasize this point enough. With the pace of change, there isn’t a destination you will arrive at where you have everything you possibly need. And, even if you theoretically could, the juice isn’t worth the squeeze. Not only should you plan for some degree of errancy in the data, but recognize the longer you take to assess, the more likely the data you have is outdated. Assess how much risk is associated with the decision and determine the minimum amount of viable data you need to make a reasonable decision. Go into it knowing and planning on the reality you’re going to learn and adapt along the way. This will likely also force you to plan your decisions differently along the path to accommodate the agile approach.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Gary F.

Co-Founder, Entrepreneur, CTO, Solutions Architect, Advisor and Board Member
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I agree, but I would add, Find the right tools, because I've seen hundreds of examples where data is collected but there are several data sources that aren't connected, so the analysis is limited or getting to the right data takes much more time than it should. So, make sure to have or find the right tools for the Job, today there are many tools so that no one should be using formulas or merging data to get to their most refined Data.

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How do you use data to support your decision-making process?

1

2

3

4

5

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1 Define your problem and objectives

2 Collect relevant data

3 Analyze your data

4 Communicate your decisions

5 Implement your decisions

6 Learn from your data

7 Here’s what else to consider

Decision-Making

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How do you use data to support your decision-making process?

1

2

3

4

5

6

7

1 Define your problem and objectives

2 Collect relevant data

3 Analyze your data

4 Communicate your decisions

5 Implement your decisions

6 Learn from your data

7 Here’s what else to consider

Decision-Making

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