Creating a Data-Driven Culture
Three Overlooked Steps Guaranteed To Succeed
“We need to change the culture.” It is a statement I hear often. It is then followed by a wild set of ideas that have sadly never worked. I have heard a lot of wild ideas. I have seen cultures change. But never one on account of the other.
When a top executive or CEO wants to create a data-driven culture, it is a very positive thing for the business. Support from the top is paramount. This article is not about that. We are going to assume you have it. The question becomes what next? And the answers I’ve witnessed in the past are way off base.
There Are Two Simple Secrets
Just two and unlike most articles, I will deliver them first. It starts with human nature. You don’t need to do half as much as you think for one simple reason — most professionals want to be data-driven. Note — I said most professionals, not most people. It is the truth, people crave feedback and data-driven companies provide it. Also note — there is huge difference between data-driven and micromanaged measurement. The latter is not culture — it is OCD for your business (seek treatment).
The second secret is equally simple, though not terribly easy. If A Corporate Culture is to be EStablished Successfully, then your people need ACCESS. Really that is just — access. If you want a culture of data-driven knowledge, truth, and decision-making then people need to see it, feel it, and experience it. I am only an authority on data-driven culture, but I suspect this speaks to most “cultural” infusions.
So how does something so simple, end so poorly? Too many executives either assume that the necessary access exists or are too concerned with short-term needs to invest in their long term success. But then, you knew that already, didn’t you?
I find that most rank and file knowledge workers understand this far better than their CEO, CMO, and sadly their CIO. Way too many of the latter seem to be on quite the opposite mission; limiting access and complicating things unnecessarily. Don’t vest cultural change in these folks. They can sponsor it, but their nature will keep them from executing on it.
So now that we know this isn’t half as difficult as we thought and that the only thing we really need is access…
Three Simple Steps To Create Access
Access #1 — Data
Data-driven culture is not built on point-and-click, out-of-box, solutions. It is built on data. Your data needs to be accessible to the business. Not some guy in IT. Not to a set of “power users”. To everyone.
And if your answer looks like this diagram, you off to a poor start!
Let’s define data access. It is NOT the ability of every member of the company to query data directly via SQL or some other technology. It is their ability to understand:
- What data is available
- Where is it is found
- When it is collected
- Why it is there
- and How… a whole lot of how
How is an article to itself. It is an occupation in itself. But as an example:
- How does the data reflect the business?
- How do I change it?
- How do I work with it?
- How is it defined?
- and the list goes on…
To create this level of access, your business needs an analytic database. This ADB must represent the production warehouse — IT’s crazy diagram above, but reflect the business. To me, this has always been the job of analysts. At a minimum, they need to design it. A good design will tell a story that even the least tech-savvy professional can nod along with.
Access #2 — Reporting
This section could be called tools or solutions, but I purposely chose the less sexy word ‘reporting’. Reports change culture. They create a common language, a common framework for evaluation, and a common set of goals. They are the true cornerstone of corporate culture, especially the data-driven kind.
People need reports. They are like scorecards, but I cringe to use the word based on the plethora of poorly engineered scorecards I have discarded in my life. They are even worse when the adjective — balanced is used. But getting back to culture — your people need to know what is going on.
Access to great reporting is the most important enabler of data-driven culture. This is also the best form of controlled access to the actual data (for all of those CIOs still cringing from my comments above). Reporting must also reflect the business and represent the data. There is plenty more to say here, but you will need to read that in later articles.
Note — ad hoc reporting is not really reporting or helpful here — more on that here:
Access #3 — Training & Education
The final step is to provide access to education and training. People need education on the data, the reporting, the tools, and on the general analytic thinking of the company.
This CANNOT be the typical new vendor nonsense technology intro. People need to learn and train with your data in your environments. They need to connect with other users and learn how the data helps to connect everyone’s efforts. A great education strategy is also a communication strategy.
The Secret is Out
So now you know the secrets. It is not half as difficult as you think and it is all about access. You know the steps — build great data structures, build great reports (tools, etc), and provide great training. Last question — who is going to do it?
My advise, hire someone. Not your CIO, not you analytics team, not your CMO, or anyone else that this won’t be their primary function. Other priorities will eat this alive! This is why people fail, along with misguided thoughts that their staff doesn’t want it or has the data structure already to support it. I sense another article — the three things that kill data-driven culture — stay tuned.
Thanks for reading! All the best luck building your new culture. If you need a little help — consider:
