𝗗𝗮𝘁𝗮 𝗚𝗶𝘃𝗲𝘀 𝗨𝘀 𝗢𝘅𝘆𝗴𝗲𝗻
Updated: Jul 9, 2022
Athletically, oxygen is necessary for burning carbohydrates, fats, and proteins that turn it into energy. In business, using pure data to drive growth is like using oxygen to run fast – it’s necessary to perform optimally.
Metrics offer insights to facilitate better decisions, improve infrastructure, and better reach customers.
“𝐈𝐟 𝐲𝐨𝐮 𝐜𝐚𝐧’𝐭 𝐦𝐞𝐚𝐬𝐮𝐫𝐞 𝐢𝐭, 𝐲𝐨𝐮 𝐜𝐚𝐧’𝐭 𝐢𝐦𝐩𝐫𝐨𝐯𝐞 𝐢𝐭.” – Peter Drucker
When encouraging a data-driven approach, I emphasize learning over judging. The first pass at collecting data creates a baseline.
No one starts at their best. The goal is to keep improving.
The data doesn’t always show positive outcomes. Knowing bad news is valuable because that allows applying solutions prior to a crisis.
Each area of the company stands to gain through data
Sales: Determine which behaviors lead to successful outcomes and how to best reach target clients
Marketing: Prove which types of engagement increase responses (e.g. A-B testing*)
Finance: Model investments, run scenarios, and predict cash flow to increase your optionality
Product: Discover your ideal customers and workflow and enhance the development process
IT: Maximize productivity for your team and sustain uptime for customers
People Operations: Apply best hiring practices to recruiting, retaining, and compensating high performers equitably
In the absence of data, we rely on intuition which can be biased.**
Want to build the right approach?
Here are the steps needed to build or level up your data gathering process:
Decide on an audacious goal for why you will improve metrics***
Determine the resources needed (people, software, overhead)
Realize the approach does not have to be overly complex or costly to start, since some information is better than none.
Share and discuss findings regularly to benefit from insights
What Can Go Wrong in a Data-Driven Culture?
Gathering data cannot replace thinking. I encourage founders to have a clear vision first, and then determine necessary metrics.
“𝑻𝒐 𝒂𝒔𝒌 𝒕𝒉𝒆 '𝒓𝒊𝒈𝒉𝒕' 𝒒𝒖𝒆𝒔𝒕𝒊𝒐𝒏 𝒊𝒔 𝒇𝒂𝒓 𝒎𝒐𝒓𝒆 𝒊𝒎𝒑𝒐𝒓𝒕𝒂𝒏𝒕 𝒕𝒉𝒂𝒏 𝒕𝒐 𝒓𝒆𝒄𝒆𝒊𝒗𝒆 𝒕𝒉𝒆 𝒂𝒏𝒔𝒘𝒆𝒓.” – Jiddu Krishnamurti
I’ve seen companies fashion vanity metrics to justify their awesomeness but not apply to industry expectations.
Finally, some founders get love-struck over beautiful financial models which relay the future they hope to see (perhaps intentionally), yet the data was wrong. However, mirrors and artwork shouldn't direct business.
Data is a tool, and the effectiveness of a tool always depends on the intention and the users. Metrics help you achieve the best outcomes.
Really excited to share a photo of my friend Ruthlyn Greenfield-Webster, RN. She’s an amazing athlete inducted into the Athletics Hall of Fame at the University of Pennsylvania, a national, regional, & world champion in the Triple Jump, dedicated nurse and loved mother.
Photo by Dave Albo who can be found here: https://www.lane1photos.com/
* Post on A-B Testing can be found here: www.webuildscalegrow.com/post/d46e1519
** Post on cognitive bias can be found here: www.webuildscalegrow.com/post/f19935f0