Its that moment of Friday inspiration and reflection again… The Harvard Business Review investigates “Why Becoming a Data-Driven Organization Is So Hard” and finds company culture is a harder hurdle to clear than any technical problem and suggests three guiding principles:
- Think different – with a view to creative innovation
- Fail fast, learn faster.
- Focus on the long-term.
I have been working with and for many companies that have been trying to become data-driven for many years. The report states “with mixed results”, but more often than not, I have failed to see the level of change needed to maximise the results.
For many organisations, they perceive the biggest challenge to be the implementation of the data strategy and having the right technology to implement it. This is not the case. NewVantage Partners annual survey, which tracks the progress of corporate data initiatives, corporate chief data, information, and analytics executives reported that cultural change is the most critical business imperative. I would agree in conclusion.
So what are the steps companies can take?
Becoming a data-driven organisation is a journey, which unfolds over time, often measured in years. In the report it states that data-driven organizations consistently demonstrate qualities that distinguish them from their contemporaries. Data-driven companies consistently execute on these three driving principles:
- Think different. Data leaders recognize that becoming data-driven requires a different mindset. Organizations must be prepared to think differently. There is no shortage of analytic algorithms. These need to be matched by critical thinking, human judgement, and a view to creative innovation.
- Fail fast, learn faster. Data leaders understand that individuals and organizations learn through experience, which often entails trial and error. It has been said that failure is a foundation of innovation. Companies that are prepared for faster iterative learning — fail fast, learn faster — will gain insight and knowledge before their competitors.
- Focus on the long-term. Data leaders appreciate that the data journey is a transformation effort that unfolds over time. Becoming data-driven is a process. The French writer Voltaire famously said, “Perfect is the enemy of good.” Perfection is rarely achievable. Data-driven companies recognize that success is achieved iteratively. It will grow and then spread. Successful organizations expect to be at this for a while. They focus on the long-term.
Something to think over during the weekend… and if you have the time, read the full report here: