Data is important. Without data we have no information that we can use to make effective decisions. As leaders and managers, it is important to understand the data that is required to arrive at those decisions. Often times, we impress upon our associates the importance of collecting data that can be analyzed and assessed for creating value, be it in the form of improving market presence (value for the company) or improving the products or services that we provide (value for the customer or client).
One aspect of data analytics that we must be aware of is that not all data is good data. In other words, you can literally bog your team down in the pursuit of data to drive value. Just as there is a law of diminishing returns in economic theory, so too is there a diminishing return in the analysis of large data sets. This is predominantly manifested in a loss of efficiency as our associates turn their focus of effort solely on every possible data element that can be gathered, rather than their primary responsibilities, whatever that may be.
As managers and leaders, it is important for us to realize this as we pursue the data that drives our decisions. In an effort to control the data mining proclivity, we must identify the valid data that is required to arrive at a specific decision point. This is challenging, especially if you work in a segmented hierarchical organization that relies on subordinates to perform the critical analysis and report results to decision makers. In this type of scenario, we find that the manager may not fully grasp the full amount of data that is being analyzed and how much of that data is actually critical to the success of the particular pursuit. It is vital for managers/leaders to communicate effectively with their associates to determine what data is being analyzed and the characteristics of the data that is being sought to influence decisions. This is no easy task, but the key to this endeavor is understanding the decisions that need to be made, the facts that those decisions are based on, and effective communication.
Allen Consulting Group is experienced in analyzing data and determining what data matters to your business. Reach out today to learn more about our ability to serve your needs and help you manage the data that matters to your growing business.
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