How Data Analytics Can Make You A Better Leader

We live in a world surrounded by data and technology, understanding big data analytics can help you make informed decisions and lead a team more effectively

In an era where big data analytics can drive smart and informed decision making, there is a clear opportunity for leaders.  In gathering and analysing large sets of data, organisations can improve customer retention, make operations more efficient, manage risk and performance, and much more.

To make the most of these opportunities, organisations will need leaders who can navigate large quantities of data and use it effectively to make informed decisions.  As an Information and Performance Manager in the National Health Service, I am passionate about both data and the benefits that it affords to increasing performance and productivity.  I believe that the best organisations will not only value the data available, but invest in training and support to their leaders, to ensure that they have the right skills to utilise data effectively, aiding their decision making.

There are three reasons why I believe this to be the case and these will be discussed in the following narrative.

1. Data helps you backup your decisions with evidence 

Organisations have access to unprecedented quantities of data; the nature of decision making is changing. When leaders understand how to analyse and interpret this data, this improves decision making and potentially the performance of the team/organisation.  Whilst large and complex data can be overwhelming, through learning and partnering with data and performance colleagues, it can be easily interpreted.  Whilst data in its raw form may not be the most useful, when this is transformed in to graphs and charts, it is easy to identify trends and areas of concern, as well as periods of high performance.  As a leader, you should be able to recognise organisational activities that have caused adverse performance, for example, a short staffing period may impact productivity, or investment into new research and development may impact the financial resources available to the core aspect of the organisation.

When decisions are made, data can be used to justify the actions and with the support of data analysts, the potential impact of the decision can be projected in to reports and benchmarking can be adopted.  This allows a prediction of the actions to be made and then on a regular basis this can be reviewed.

2. Understanding data helps you act as a bridge between teams 

The ability to communicate technical insights to your team is another vital leadership skill that comes with an understanding of data analytics.  Different data is compiled by different teams, whilst this is usually collectively presented, more detailed analysis is undertaken by the specific team, for example the finance department will look at all costs and its associated performance, whereby a production department will look specifically at output.  In understanding a wide range of data analytics, leaders can have meaningful conversations with peers from other departments and seek to understand how wider data can help inform their decision making.   

There is a clear opportunity to not only build relationships across multiple teams, but to seek new opportunities for joint working, which enhances performance and productivity.  An effective leader will want to explore opportunities to grow, but also to support their team and others, in reaching goals and objectives.

Whilst data certainly can be the bridge between teams, it is not the only component.  But in providing the link between teams, it can promote relationship building and improve performance.

3. Data analytics will help you build convincing narratives

Knowing how to manipulate large quantities of data not only helps you make recommendations, but it can also help you tell a convincing story that will help your team understand and use these insights.  By using data-visualisation tools, managers can more concisely and convincingly get their points across.  A presentation with good pictorial data can be highly effective.

Due to the vast amounts of data available, leaders will be able to slice and dice the elements that they feel are most important.  When this data is analysed, it will prompt thought invoking inquisitiveness, which will lead to narratives being compiled.  Whilst these narratives initially may only be notes and mind maps, they may lead to contributing to strategic level reports.  It is usual for a number of different data sets to be compiled, often offering comparisons, which lead the author to being able to make an informed decision.

Mark Horton

www.engage2perform.co.uk