As professionals, we have all heard the term “data-driven decisions,” but have any of us thought about what the phrase truly means, and how do we implement data into our decisions?
We spend years perfecting our decision-making processes. From early childhood, we know what we like, want, and need. Yet, as leaders, we allow other people, situations and emotions to influence our decisions. We fear failure, loss, or not meeting numbers. We allow these fears to drive our decisions.
How many of us allow our emotions to guide business decisions? Emotions have no place in business; they cause us to lose focus, stretch ourselves, and live with an ever-present fountain of hope. While none of these are negative emotions, they are not emotions which will allow us to maintain a clear perspective. Rather, they hide the truth or convince us we have extra time to make difficult decisions.
While we should never allow emotions to drive us, we can and should listen to our gut. Our subconscious will pick up on subtle hints and clues we sometimes miss. Our gut will tell us when a deal looks perfect and all the data aligns, but it appears as though the other person has every intention of taking advantage of us. Learning to differentiate between emotions and gut is a key skill, one which will assist us in all aspects of your life.
Combining gut instinct with data-driven decision-making will make us unstoppable. Decisions will be easier to make, and we will no longer need time to decide. Listing pros and cons will become a thing of the past. Decisions will become effective and efficient, and lingering doubts or feelings of guilt over a decision will disappear.
So how do we implement data-driven decision-making? We learn to embrace data and use it in every aspect of our careers. Once we know what problems we are solving, we know what data we need to collect. Collecting and analyzing this data frequently provides us with continual updates on the reactions, needs, and wants of our target audience. This information will allow us to pivot and adapt as needed. Small fluctuations in the market will be evident to us before anyone else. We will be able to stay ahead of the curve, continually providing the services and products wanted.
Collecting data can be simple. Once we have identified the data needed, we can build a spreadsheet designed to organize the data. Keeping data in a spreadsheet will allow us to access the data instantly, and allows us to make decisions on the fly. Including data in your annual budget will allow us to know if we should take advantage of a sale or work with a new vendor. We should never guess again because we will live in the certainty of data.
This method will alleviate stress, create confidence, and make our businesses or careers stronger. Combining this with gut feelings--true gut feelings--will ensure every decision we make is our best decision.
Sara Orellana is an independent entrepreneur who specializes in strategic planning, leadership, and grant writing. She can be reached at sara@3raptorconsulting.com.