Stop Chasing the Past: Get Strategic or Get Left Behind

I was listening to Adam Grant’s podcast, Rethinking, when a thought-provoking statement caught my attention. Erica James, dean of the Wharton School of Business, told Grant, “Your job is not to be data-driven. Your job is to be data-informed.” She said if you are data-driven, you will always be chasing the past. A step behind. You are reading the patterns of the past. The data can tell us what has happened in the past; it cannot guide us to the future. This statement is a powerful reminder for small-to-medium business (SMBs) owners: the more data we have, the more important it is to question our assumptions about the past.

For SMBs, the temptation to focus on day-to-day operations can be overwhelming. After all, running a business involves endless tasks that require immediate attention. But while managing daily operations is essential, it’s equally crucial for business owners to step back and take a strategic approach—one that looks forward, not just at the present or past.

Consider the statistics. Roughly 20% of small businesses fail within their first year, and 50% do not survive beyond five years. These numbers are stark, but they also highlight an opportunity. Businesses that can move beyond mere survival and into growth mode are rare. Only about 4% of small businesses reach $1 million in revenue, and the percentages shrink further as the revenue target increases—just 0.4% reach $5 million, and a mere 0.1% hit $10 million.

These figures reveal a crucial truth: the businesses that succeed in the long term are those that look beyond the day-to-day and focus on strategic growth. Operational excellence may keep the lights on, but strategic vision propels a business forward. It’s about being data-informed—using past data to understand where you’ve been, but not letting it dictate where you’re going.

This approach requires business owners to shift their mindset. Instead of getting bogged down in the minutiae of daily operations, they should delegate these tasks and focus on long-term goals. This might mean investing in new technology, exploring untapped markets, or innovating products and services to meet future demands. It also means being open to questioning the data—challenging past assumptions and being willing to pivot when necessary.

In an era where data is abundant, it’s easy to become obsessed with metrics. But as Erica James wisely pointed out, being data-driven can trap you in the past. To truly thrive, small business owners must be data-informed, using insights from the past as a foundation, but always keeping an eye on the future. That’s how you move from merely surviving to scaling new heights.