Deferring to data

James Fisher at Qlik argues that when it comes to decision-making, leaders must embody principles of Active Intelligence

 

When it comes to organizational decision-making, it would be hard to argue against a process based on evidence and data. The ‘gut’ feeling of a single person with leadership clout is hardly strategic. Too often organizations defer to the loudest voice or fall into the trap of doing things the way they always have.

 

Even when so much of our world is driven by digital, data-enabled systems, data is often ignored. Take the fact that more than half of the global employees we surveyed report that it is still difficult to make collective decisions based on data and not just the opinion of the highest paid person in the room.

 

It would be hard to find a starker reminder of the need for evidence-based decision making than a global pandemic. It illustrated why we need to construct strategies and responses based on real-time, reliable data; those countries whose leaders relied on scientific advice based on evidential data responded faster and more effectively.

 

In business, a dynamic relationship with data empowers people across the organization to harness real-time insight that powers the agility essential in today’s digital economy. Without access to data, decisions are made in the dark. Where you fail to harness insight to drive agile responses and future-proof strategies, a competitor certainly will.

 

Leaders are increasingly aware of the need for end-to-end analytics data pipeline – what we call Active Intelligence  - where cloud technology and analytics combine to deliver continuous business intelligence from real-time information designed to trigger immediate actions. They are thirsty to reap the rewards of in-the-moment awareness and data-based decision-making.

 

However, they often fall at the same hurdles. So, what does it take for business leaders to ensure a culture of Active Intelligence in their organizations?

 

Instill top-down deference to data

Although in our research nearly nine in ten (89%) C-level executives expect their team members to explain how data has informed decisions, nearly half of those leaders (45%) still frequently make decisions based on gut feeling rather than data-led insight.

 

The contradiction is apparent, and any such ‘one rule for me’ approach is bound to stymie any attempt to ensure data deference within an organization.

 

While it might be easy to think that leader’s unwillingness to set ego aside drives this divide, we found that it is trust that is a major issue. Part of what’s holding them back is that 42% do not always trust that the data available is up to date and accurate. Making a decision based on poor, unreliable or out-of-date information is as risky as simply ‘going with your gut’.

 

Trusting data is crucial, but trust cannot be granted blindly. It is right to question how explainable it is, plus its validity and data lineage, to ensure the data you rely upon is fit for purpose.

 

Creating a trustworthy end-to-end analytics data pipeline requires quality business intelligence inputs. Once this is established, it then requires top-down deference to this high-quality data to ensure the whole organization is aligned in an evidence-led approach.

 

This leads to data-led leadership’s next key characteristic: the ability to accept new ideas.

 

Enjoy discovering unpleasant truths

Former US President Theodore Roosevelt famously said, “the most unpleasant truth is a safer companion than a pleasant falsehood.” We rely on data not to simply confirm what we think we know but to show reality. That means leaders must be open to acting on what the data says, even if it gives answers they may not like.

 

Take the example of Daniel Kahneman. The Nobel Prize winner, psychologist and economist famously came up with an objective way to measure the characteristics he thought was relevant for military success. In doing so, he was able to strip away the psychological biases in human decision-making. This method is one that is still used by the Israeli army today.

 

Rather than seeing data as a potential naysayer, leaders should see data that goes against preconceived ideas as an opportunity to innovate rather than stagnate. It is the ultimate solution against confirmation bias. Data insights help business leaders better understand market and consumer drivers to evolve products and experiences, adapting and innovating to stay competitive.

 

In short, being open to data proving you wrong - and accepting that - is essential to success.

 

Empower decentralized decisions

An end-to-end analytics data pipeline does not just empower leaders to make evidence-based decisions; it also allows employees across the business to make decisions with the benefit of actionable information and insights.

 

In this way, Active Intelligence is the lynch-pin of a truly collaborative organization, where employees are trusted to make the right decisions based on trusted data. Such empowerment can only breed more engaged colleagues who are confident to deal with problems in the moment, knowing they are doing so with the insight they need.

 

A decentralized, data-empowered decision-making process allows teams to collaborate on equal terms, with agreed parameters, to solve problems or achieve goals that an individual could not accomplish alone. Importantly, using the right technologies, data becomes not only decentralized, but democratized. When data is presented in the right format for the user wherever or whatever their role, it becomes accessible and applicable.

 

Putting it all together

Now is the time to become an active leader of data – to lead by example and pave the way for new working practices that will place your business at the heart of the digital economy.

 

From deference to democratization, there are principles that leaders must embody themselves to ensure Active Intelligence extends throughout the organization.

 

 

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James Fisher is Chief Product Officer at Qlik. You can find out more about Qlik’s Active Intelligence BI service here.

 

Main image courtesy of iStockPhoto.com