Demystifying The Data-Driven Mindset To Power Better Decision-Making

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Demystifying The Data-Driven Mindset To Power Better Decision-Making
Data-DrivenDecision-MakingDecision Making
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I'm the author of Effective Data Storytelling: How to Drive Change with Data, Narrative, and Visuals (Wiley, 2020). I'm also the founder of AnalyticsHero, LLC, a data storytelling consultancy. I have over 17 years of enterprise analytics experience at Omniture, Adobe, Domo, and Blast Analytics.

Decisions are the lifeblood of business. From the c-suite to frontline employees, decisions are constantly being made at all levels within organizations. Some are consequential and irreversible, but many are routine and amendable. No progress can be achieved, or knowledge gained, without making decisions. Management guru Peter Drucker said, “Whenever you see a successful business, someone once made a courageous decision.

An example of this occurred recently when the audio equipment manufacturer Sonos rushed to market a redesigned product app with insufficient user testing. Instead of modernizing the user interface, the new version removed core functionality that upset loyal customers. Sonos announced its app redesign slip-up willWhile not leveraging data correctly in the decision-making process can lead to problems, data can also make it more difficult.

Human judgment, which balances broader context, situational nuances, ethical considerations, empathy, and compassion, remains crucial. For AI-powered decision support, humans must scrutinize not only the data but also the logic and criteria used by AI tools to generate their recommendations.

Regardless of your preference, this framework will highlight 12 traits that contribute to a comprehensive data-centered approach to decision-making. Just like an operating system governs how a computer functions and interacts with other components, a data-driven mindset will govern how an individual processes, interprets, and acts on data.

Several years ago, a luxury retail brand was introducing a new clearance section to its website for the first time. As the digital team was preparing to run tests on the new page designs, the digital vice president suggested they could skip the testing phase. Due to his extensive experience in off-price retail, he felt confident he knew which page design would work best for discounted merchandise.

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