Making Data-Driven Decisions as a Leader

I have always believed in the power of data-driven decision-making. Today, more than ever, in a fast-changing business landscape, leaders need to be able to gather and analyze data to make informed decisions that will help their organizations succeed. Leadership is not always just about the interpersonal, but data as well!

Peter Drucker said, “What gets measured gets managed.” Leaders must learn to track key performance indicators and identify trends. This allows leaders to make strategic decisions that will positively impact their organizations.

For example, if donations are down at your non-profit and volunteers or attendance (for a church) is up, there is a trend somewhere! If demand is up and productivity is down, there is a trend somewhere! Determining where and what the issue is can help improve and correct it to continue growth.

Nate Silver, the statistician and founder of FiveThirtyEight. Silver once said, “The numbers have no agenda; they just are.” Data speaks for itself, and if we trust it and sift through it, it will help guide our decision-making. The issue is not letting our biases or preconceived notions influence our decisions.

I have seen the benefits of using data for decisions. I’ve worked in analytics and analyst roles for several years, by gathering and analyzing data on people’s behavior, trends, organizational performance, etc. It's part of why my undergrad studies had a focus in Economics! I enjoyed studying people's trends and behavior. In these roles, I’ve reported and clarified what is happening and what to do for improvement!

I'm going to use a church as a unique example. A non-profit but still an organization with metrics that many don't consider. In a church setting, it may not always be simple to find the metrics, but I've determined three. Churches generally operate in three primary areas. (This isn’t exclusively what they focus on; I’m referring to the main functions of their operational side.) Finances (donations/budgets), attendance, and engagement in activities. These can be monitored, but churches generally don’t engage in the same analytics that a business does. The point is that any organization can track and keep up with a level of data!

However, it’s important to remember that data is just one tool in a leadership toolkit. Leaders still need their intuition, experience, and judgment to make the best business or ministry decisions. John Wooden said, “It’s not what you do, but how you do it.” Data is a tool, but it is not the end-all-be-all of decision-making.

It is important to use data when available. Trust it. Just don’t let it drive all your decisions, especially in a setting where the customer or church member is concerned. They’re not simply numbers; they’re people that need attention!

Nick Dyson is the owner of Dyson Leadership and is a

Maxwell Leadership Certified Speaker, Trainer, and Coach. Providing Leadership coaching, training, workshops, Lunch & Learns, and more!

To learn more about training provided by Dyson Leadership, visit our webpage.