United States: 15 Strategies To Use Business Data The ‘Right' Way

Data can provide business owners with a wealth of information if it's leveraged correctly. Many have plenty of data to work with, but may not be sure of the "right" way to use it. This can lead to confusion at best and ill-informed decision making at worst.

To help entrepreneurs avoid using data the "wrong" way, the members of Business Journals Leadership Trust share their expert insights. Read on for 15 strategies you can implement to make the most of your data.

1. Understand how analytics can impact your company.

Having a clear understanding of how data analytics can impact your company is vital when making key business decisions. Many entrepreneurs and corporations experience paralysis by analysis as access to data continues to grow and evolve in an ever-changing marketplace. Business leaders must prioritize business goals, commit to the goals and then use data to analyze efficiency and profitability. – Latria Graham, GLB Media Group

2. Track KPIs and key processes.

Using the data the "right" way could mean several things to an organization. For starters, the "right" could mean using your data to track key performance indicators (KPIs), which are aligned to organizational goals and objectives. It could also mean tracking key processes with a mindset of data-driven decision making. In the end, it's subjective — but having a bit of both drives toward the creation of best practices. – Jacquay Henderson, Square Peg Technologies

3. Start with quality data.

There's an old saying: "Garbage in, garbage out." Start by making sure you have quality data. Clearly define what you are trying to accomplish, measure and answer with data. Identify what inputs will be necessary to go into what system to create your outputs to help answer your questions. You need quality data to power your business just as you need quality fuel to power your car. – Sharon Olson, Olson Wealth Group LLC

4. Get perspective from others.

Leaders need to establish trust to use data effectively. Data needs to align with strategy and business goals. It is crucial to keep an open mind about data. Be able to step back and get perspective from others. – Molly Anderson, University at Buffalo Center for Leadership and Organizational Effectiveness

5. Ensure security.

Data that provides a competitive advantage and is not generally known can be considered a trade secret, but only if it is maintained in a secure manner. Both physical and electronic security, as well as limited access, are important to ensure maximum legal protection in the event of data hijacking. – Jason Mueller, Sheppard Mullin Richter & Hampton LLP

6. Start with focus, then branch out.

When processing information, start with the one or two metrics that truly drive your business. Go deep into the data underlying those metrics. Look at it in different ways and find anomalies. Be curious and discover. Once you have greater insight into these most important metrics and have acted on what you learned, you can go wider into additional metrics. – Nasser Chanda, Paymerang

7. Eliminate inconsequential metrics.

Data around inconsequential levers or actions become distractions and are false positives. Company leaders must understand the few activities and metrics that power the company's flywheel. Most companies track too many things, causing the important things to be overshadowed. Leaders must be honest about what truly drives the business. What matters should be reduced to no more than three things. – Ryan Frederick, AWH

8. Identify your question.

The best way we've found to use data the right way is to start by clearly identifying the question trying to be answered. Using the goal as the starting point allows an organization to ensure they are looking at the right data to start. There is so much data available today, so an organization has to make sure that they know what they want out of it. – Eric Moraczewski, NMBL Strategies

9. Pair data with lived experience.

From a nonprofit perspective, when filling a gap that data indicates is present, nothing beats pairing data with lived experience. The "right" way to use data requires getting the full story from those who have the lived experience, including barriers and engagement preferences. By not pairing the data with perspectives other than your own, you risk missing out on the full story the data can tell. – Carrie Collins-Fadell, Brain Injury Alliance

10. Review data points regularly.

Too much data can be overwhelming and sometimes paralyzing. The key is identifying the right data points for your organization and its key performance indicators (KPIs), then maintaining the intentionality to review it on a regular basis in order to identify trends and make data-driven business decisions. – Melissa Lackey, Standing Partnership

11. Use it to tell a story.

It sounds obvious, but you need to get the basics right first. You must ensure your data is accurate and well-organized before you aggregate it into a centralized dashboard and start your analysis. The most important thing is to use your data to tell a story. The data should support a compelling narrative or make a case for a decision. – Kenneth Bowles, WilsonHCG

9. Pair data with lived experience.

From a nonprofit perspective, when filling a gap that data indicates is present, nothing beats pairing data with lived experience. The "right" way to use data requires getting the full story from those who have the lived experience, including barriers and engagement preferences. By not pairing the data with perspectives other than your own, you risk missing out on the full story the data can tell. – Carrie Collins-Fadell, Brain Injury Alliance

10. Review data points regularly.

Too much data can be overwhelming and sometimes paralyzing. The key is identifying the right data points for your organization and its key performance indicators (KPIs), then maintaining the intentionality to review it on a regular basis in order to identify trends and make data-driven business decisions. – Melissa Lackey, Standing Partnership

11. Use it to tell a story.

It sounds obvious, but you need to get the basics right first. You must ensure your data is accurate and well-organized before you aggregate it into a centralized dashboard and start your analysis. The most important thing is to use your data to tell a story. The data should support a compelling narrative or make a case for a decision. – Kenneth Bowles, WilsonHCG

12. Work backward from your end goal.

I wouldn't say there is a right and wrong way to use data. First, you must make sure the data is accurate and meaningful. Then, you should decide what your end goal is. Finally, determine what data is needed to achieve this goal. Having tools to manipulate that data into usable reports is always helpful too! – Timothy Hess, Azteca-Omega Group

13. Target your research and data collection.

Before you start looking for data, find out what problem you are trying to solve and what kind of data will be most helpful for this purpose. Instead of compiling all the possible data you can find on a particular issue, focus on the types of data you need in order to answer the question in front of you. The more targeted your research and data collection, the more useful your analysis will be. – Peter Abualzolof, Mashvisor

14. Measure what matters.

I've found the best way to use data is to measure what matters. Take data out of the equation for a moment to discuss and agree upon which key performance indicators (KPIs) truly and effectively measure the health of the business. Then determine which data sources are most accurate. Build a dashboard to track that data, and have meetings to discuss progress and obstacles to successfully achieving goals. – Kent Lewis, Deksia

15. Identify inefficiencies.

Use data to determine where there are inefficiencies in your business. Just because something or someone has been there for a long time does not mean those need to be retained. Tradition is not necessarily a good thing if there is a better way. – Zain Jaffer, Zain Ventures

Originally Published by The Business Journals

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