Data Driven Leadership | what Struggling Businesses need
Data driven leadership is all that a struggling business needs for that much expected turnaround. The power of big data analytics coupled with the ever continuously improving Artificial Intelligence (AI) Landscape has provided tools that were once reserved for the few management elites.
Becoming a data driven leader is not a rocket science that only the super intelligent are privy to. Any leader with will can easily lead with insight that comes from the power of big data. There is no requirement of becoming a data scientist or data analysts.
Data driven leadership is a common denominator that all failed businesses are lacking. It is possible for one to occasionally get lucky with intuition but that does not happen every day. Decisions have to be based on measurable impactful matrixes in such a way that different people of similar capability can come to same conclusion.
Data is your most valuable leadership asset according to Dearborn and Swanson. A true leader understands that data is the new currency that connects stakeholders when properly harnessed. No meaningful progress can be made without data, no positive feedback can be obtained without data, no fruitful research can be done without data, no leader can be held accountable without data, etc.
This article is written with the intention of showing small business owners how to use data at their disposal for purposeful leadership.
What a data driven leadership?
Simply put, a data driven leadership is that ‘’leadership that understands the importance and value of connecting the dots using data. A data driven leader uses data to connect with every facets of a system while making decisions and allocating resources’’.
How to become a data driven leader
- Equip yourself with the right skills: great leaders are life ling learners. The first step to becoming a data driven leader is to learn the art of the trade which is making use of basic data analytics tools. Some people think that one does not have to know how these things work before one can benefit from it. Yes, that is true but no harm will be done if a leader understands the mechanisms behind data processing- in fact, being proficient in data processing is the ideal data driven leadership that we are referring to in this article.
- Have the right tools to analyse data: there are numerous tools out there that can be used to achieve same goal and objective. It is only a matter of preference in my opinion. I personally use Python programming language and R programming language for making sense of my data.
- Gather data: a data driven leader gather data at every slightest opportunity. There are no short supplies of data in our current world. However, care must be taken not to breach personal data and privacy of people involved.
- Analyse data: the next logical thing to do is to analyse the data that have been gathered into meaningful information that can be used for making sound decisions.
- Make decision: this is the easiest part of the whole process. Data driven leaders always fall back to processed data every time they want to make decision- critical or non critical decision.
- Monitor and review outcome: most decisions are not got right the first time and therefore the need to review and monitor the outcome is paramount. It is at the stage of data driven leadership that data oriented leaders make tweaks in hindsight.
10 Benefits of data driven leadership
- Fair leadership and transparency is assured
- Reduced risk of being misunderstood
- Quick in decision making
- Reliable decision
- Corporate governance will be the order of the day
- Attracting and retaining top talent
- Improved profitability and Cost saving
- Improved efficiency
- Strong public reputation and improved brand
- Room for accountability
Data driven leadership is a kind of management style that modern day businesses needs to make the world continue to go round. The ridiculous continuous drop in the prices of business technologies has even made it easier for dynamic managers to easily adopt data driven leadership.
The whole world of leadership and management has taken a new turn without any sign of changing. Smart and successful business and industry leaders rely on the power of big data and technology to continuously make informed decisions.