Decision-making is one of the requirements of being a good manager, executive, and CEO. On a day-to-day basis, many decisions have to be made. But it’s not the decisions that are made that are important in most cases, but how you arrive at those decisions. Reliable decision-making data is valuable, as it ensures decisions are being made based on accuracy rather than gut feeling. From inconsistency to no action plan, here are some clues you can miss.
A Reliance on Manual Data
There was once a time when spreadsheets ruled the workplace. While they still have their use, modern data relies on a much more robust strategy for making decisions. This means regular and up-to-date data with as much accuracy as possible. Services that provide business analytics and other types of data wrangling with AI can be what you need to kickstart your personal data revolution, so you no longer have to depend on days-old data from manual entry.
Inconsistent Interdepartmental Information
Even in small businesses, there can be multiple departments that don’t communicate well with each other. This means data is often siloed and can be missed, unshared, or even in conflict. As such, various departments can scramble trying to figure out which sets of data are the best to use. So what is the solution? It’s actually quite simple, and there needs to be a formal and centralized system of ensuring data consistency and accuracy throughout the entire business.
Decision-Making Data that Doesn’t Meet Standards
Even today, in a world of digital information, 60% of managers still make decisions based on a gut feeling. While this is a valued skill, it isn’t fact-based and can lead to terrible mistakes. However, even when you use data, the lack of a formal process for checking accuracy can be just as damaging. That’s why things like mastering digital record-keeping are necessary today. With highly accurate and verified data, you can remove gut feelings while staying compliant.
A Lack of Actionable Real-Time Insights
One of the most powerful tools a modern business has, and many do indeed use, is accurate data from real-time insights. Every second might count in a busy company, especially in sectors such as finance. A team that can’t use data in a real-time way will lack the ability to keep pace with others in the same industry. This also means that your competition will steam ahead as your company still tries to come into the 21st century, which is challenging and damaging.
No Formation of a Data Strategy
A business runs well when it is a well-oiled machine, according to the popular proverb. As such, teams need access to a data strategy that suits the company as a whole. To establish this, a data strategy must be documented, accessible, and coordinated. It also helps to formulate a data strategy that aligns with company goals, such as including KPIs and ESG metrics. If not, there is the potential for severe risk when data is used poorly, adding to governance issues.
Summary
Relying on manual data entry that is relatively slow by today’s standards is one of the decision-making data clues that any manager can miss. You also need data that meets compliance standards, and this can be worked out with a strategy that meets company goals.
