“Data are just summaries of thousands of stories—tell a few of those stories to help make the data meaningful,” writes Dan Heath, business author, speaker, and teacher. Determining whether to use data for continuous improvement is the first step, but once leaders work with data, then they need a strategic plan for achieving the results they desire. Here is a six step strategic plan for achieving data driven results:
- Choose Data: The first step in using data for results is to identify the appropriate data. The leadership team should discuss the data as a team, and the data should directly align with the larger, strategic goals. The sole purpose of using data is to help move the needle toward reaching the larger vision. What data do you use to consistently move toward reaching the organizational goals?
- Determine Baseline: The second step in using data for results is to gather the baseline data. Gathering baseline data may include collecting it through a survey or pulling the data from an information system. Leaders often get stuck at this point due to the challenge of collecting data or not knowing exactly how to organize it. Collect data in a way that allows for the least friction when organizing it. How do you collect and organize baseline data?
- Communicate It: The third step in using data for results is communicating the baseline data to everyone in the organization. People need to understand the reality of the data, how it aligns with the larger vision, and the appropriate steps to improve it. In a smaller organization, this takes place in a staff meeting; in larger companies, leadership meets and then relays the information. How clearly do you communicate the baseline data?
- Develop Actions: The fourth step in using data for results is to develop 3-5 key actions that align with each data point. Develop a document that lists out the data points, the baseline data, and key actions that people will take to improve them. When identifying the actions, ensure that an individual or a group of people lead those actions. If the actions require the entire organization, communicate exactly what leadership expects of them. How specifically do you develop actions that move the needle?
- Analyze Data: The fifth step in using data for results requires collecting and analyzing the data again. The leadership team should set specific data collection dates: teams often use weekly, monthly, or quarterly as benchmarks. In the same way the data collection occurred with the baseline, collect it again. Ensure that it’s collected in the same or a similar way to get quality results. Organize it and then analyze if the actions implemented moved the needle. How frequently do you collect data for analysis?
- Revise Actions: The final step in using data for results is to analyze the data and revise the actions. As a leadership team, ask the following questions: How is our data similar to or different from the baseline? What actions should we stop doing, start doing, or continue doing? The discussion with the leadership team helps make adjustments to the actions. In many situations, the actions may stay the same for an extended period of time.
One aspect of highly-effective leadership requires collecting, analyzing, and using data to move the needle on results. The best leaders narrow their focus and take relentless action to improve the numbers. Using data effectively requires a strategic system implemented at certain points throughout the year. Decide on the data, collect and analyze it, and develop actions that support results.
What is your strategic system for using data to drive results?