A Bottom-Up Approach to Becoming a Data-Driven Business

According to Statista, the global big data analytics market is expected to see its annual revenue jump from $15 billion in 2019 to $53 billion by 2025. So, it’s clear that businesses are spending big on big data. However, as is the case with many other areas in business, big spending doesn’t always produce a big impact.

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THE SITUATION:

In 2021, only 24% of executives said they’d describe their companies as data-driven, which is down from 38% in 2020.

When asked about the barriers to becoming a more data-driven company, 92% of those executives attributed the “principal challenge” to people, business processes, and culture; with only 8% citing technology limitations.

(Source: “Big Data and AI Executive Survey 2021”, NewVantage Partners LLC)

THE OPPORTUNITY:

As seen in The Situation, nine out of ten executives believe the business’ data-driven struggles stem from their people. Assuming sufficient data resources are made available, that perspective makes sense because both processes and culture are dependent on employee involvement and follow through.

With that perspective, it’s easy to conclude any people-oriented struggles are due to lack of individual ability or willingness. But I don’t believe that to be the case. Having worked on customer insights projects with brands of all sizes across a variety of industries, my experience is that most employees are motivated and capable. There just seems to be a disconnect between the collective desire to be data-driven and the strategic approach to making that happen.

In addition to seeing motivated and capable employees, I’ve also commonly seen a top-down approach to process and culture development. Leadership formulates a strategic plan amongst themselves which is then trickled down through department heads to individual team members. While effective in many areas, however, this approach seems to be ineffective when it comes to data-driven initiatives – based on the declining number of executives who feel their companies are sufficiently data-driven.

So, The Opportunity that jumps out is to switch from a top-down to a bottom-up approach for data-driven process and culture development. If people are the principal challenge, they could hold key insight into the solution. By understanding their day-to-day needs, experiences, and perspectives, leadership can address any pain points or resource gaps that are slowing progress toward being fully data-driven business. ?

THE CHALLENGE:

When seeking to understand human behavior, it can be tough digging below the surface to uncover the underlying drivers. Even for me, it’s often difficult to articulate why I do what I do (or don’t do).

Regarding data-driven barriers, The Challenge is pinpointing specifically what’s holding people back. It’s looking past the symptoms in search of the root causes. By understanding the foundational reasons why existing processes and culture initiatives aren’t having the desired impact, leadership can refine their strategies and tactics as needed. This is easier said than done, but it’s both necessary and well worth the effort.

THE SOLUTION:

The first step in understanding people is actively listening to them. Here, The Solution is launching an employee feedback project or program focused on their needs, experiences, and perspectives. This will provide insight directly from those who are responsible for upholding data-driven processes and embodying a data-driven culture. Clearly there are disruptive pain points, resource gaps, and/or communication breakdowns. The quicker those issues are identified, the quicker solutions can be explored.

This is accomplished through interviews with key stakeholders and feedback surveys sent to all employees. But, as noted in The Challenge, it likely won’t be as easy as asking, “Why aren’t we adopting data-driven practices?” That could be an interesting place to start to capture high-level insights, but more will be needed because that is addressing the symptom rather than the root cause. Instead, it takes a holistic approach digging into things like employee sentiment, engagement levels, working environments, management performance, and day-to-day operational factors. It is also beneficial to provide opportunities for unstructured feedback allowing everyone to share thoughts or ideas they deem relevant. Each piece of feedback contributes to the overall puzzle of how to become a data-driven business. The more pieces gathered, the more complete the puzzle will be.

Furthermore, these feedback efforts are most effective when they are ongoing. By maintaining open communication, businesses gain a steady flow of insight supporting agile decision making and more streamlined development. As strategic adjustments are made, it’s important to monitor whether they are having the desired impact. Fielding annual or bi-annual feedback surveys are certainly useful but are limited in their impact because a variety of factors might be responsible for fluctuating results. Consistency is key for actionable insights.

MY ADVICE:

Our people are our greatest assets and allies. They want to be successful and perform at high levels; if not for the business, at least for themselves. Giving them a voice and offering a seat at the decision-making table will empower and motivate them.

One additional (and often overlooked) benefit of gathering employee feedback is how the simple act of listening strengthens a person’s connection, involvement, and engagement with the company. When a person feels heard and valued, their levels of commitment tend to rise. That in itself is a motivator for progress when it comes to process and culture improvements. Employees who feel they are part of the company’s overall strategic direction and development carry a sense of ownership in their day-to-day activities.

HOW WE CAN HELP:

Gathering employee feedback is like customer feedback; you need to ask the right questions in the right ways and know how to pull actionable insights from the data you collect. Those are key aspects of our approach to empowering brands with the data-driven clarity, knowledge, and wisdom needed to thrive in a fast-paced world. From strategic guidance and project planning to survey development and results analysis, there are a variety of ways we can support your employee feedback and data-driven efforts.

If you want to learn more about our services or brainstorm some data-driven initiatives, please don’t hesitate to send me a message!

YOUR TURN:

I’d love to see your comments and thoughts about becoming a data-driven business. Do you have any tips or suggestions for process and culture development? Are you leveraging employee feedback surveys to guide your decision making? Did any questions or ideas pop up while you were reading?

By sharing your thoughts, ideas, and suggestions, we’ll foster a collaborative community where actionable insights are the foundation and collective success is the outcome.

Do you have a stat, fact, or trend you’d like me to write about?

Send me a message or share it in the comments. I’ll add it to my list of future newsletter topics!