Drowning in Data: Why Our Obsession With Metrics May Be Crippling Leadership

Recently, I’ve read a number of articles about, and been involved in multiple conversations with business leaders regarding, the consequences of the myriad systems producing data in their organizations. As a veteran business leader, I can attest to the reality of overwhelming amounts of data from many different departmental applications (i.e., CRM, ERP, Web Site Commerce and Social Media Statistics, HR, etc.) that are intended to provide leaders with information that results in unique insights for driving organizational success.?

Technology, including GenAI, continues to promise us a golden age of business leadership - real-time insights, data-driven decisions, and streamlined operations. However, for many leaders, the reality feels more like a deluge. The proliferation of metrics, KPIs (Key Performance Indicators), and OKRs (Objectives and Key Results) across various platforms, departments, and divisions has created a data glut, often hindering rather than helping decision-making.

Lost in the Numbers Game

Imagine a leader bombarded with dashboards, reports, and alerts from a multitude of tools. Each system tracks a different set of metrics, often with overlapping information presented in varying formats. Extracting meaning from this chaotic landscape becomes a time-consuming exercise. Valuable insights get buried under layers of irrelevant data, leading to analysis paralysis.

My own most recent experiences of this effect as COO in two different companies is no different: when all was said and done, we manually and technically configured spreadsheets and other application feed summaries of the data in an attempt to gain information transparency in a single online location, with both lagging and leading indicators aligned to our goals. The results were always mixed, and typically placed a heavy labor burden on the very humans that the expensive technologies driving the data were supposed to free up for more strategic problem solving.

The Cure for Information Overload: Focus on Quality, Not Quantity

Not all data is created equal. While some metrics offer a clear line of sight to success (e.g., sales figures, customer satisfaction), others provide a fuzzy picture at best.? Leaders get bogged down analyzing vanity metrics (like website traffic, click through rates, and community membership levels) that don't necessarily translate to business outcomes.

So, how do we turn this data deluge into a manageable stream of actionable insights? Barring the advent of an amazing tool that easily places only the data you want from all of the sources you need into a single accessible place - with AI supporting immediate feedback and analytics (more on this concept in a later article) - today’s realistic roadmap most likely contains the following elements:

• Consolidation is key: Integrate disparate data sources into a unified platform. This eliminates the need to juggle multiple logins and formats, providing a single source of truth. Because integration will most likely require human and capital resources, be very careful about the data you want to see versus the data that is not actually relevant to your success.
• Prioritize ruthlessly: To the point just made above, identify the handful of metrics that truly matter to your organization's strategic goals. Ruthlessly cull the rest. Remember, less is often more. For example, unqualified leads may matter to your marketing team but have less impact on your ultimate goal achievement. Let the marketing team worry about unqualified lead generation while your leaders worry about increasing the conversion of qualified leads into sales.
• Focus on actionable insights: If you can afford it, move beyond raw data visualization. Invest in tools that offer automated analysis, highlighting trends and anomalies that require attention. This allows leaders to focus on making informed decisions rather than simply looking at data. And, the upfront investment in data integration should remove the need for constant upkeep on homegrown dashboards and data feeds.
• Cultivate data literacy: Empower your leadership team to understand and interpret data effectively. Invest in training that goes beyond basic data visualization and delves into statistical analysis and drawing meaningful conclusions.

Build a Path to Effective Leadership

By taking control of the data flow, leaders can transform the current information overload into a powerful tool. Prioritizing relevant metrics and adopting a consolidated approach can unlock the true potential of data-driven leadership. Remember, technology is meant to augment our decision-making, not replace it. Let's leverage its power to make informed choices, freeing up valuable time to focus on what truly matters - leading our teams to success.

About the Author

Lee Peters is the CEO of 3 Degrees Deep, an education and technology consulting services company serving for-profit, non-profit, and start-up businesses. If your business is looking for help with a project, visit the web site or find Lee on LinkedIn.