You Are Not Data-Driven

Many people (and companies) say they are “data-driven”. Unfortunately, what that means is “hey, I think this is true, go get the data that supports my idea. No, not that data, get the other data.” This is the common definition I see on a regular basis. If this describes you (or your company), then you are not data-driven.

What it means to be data-driven is this: You collect and use data to make your decisions. I’ve seen this also called “data-informed”, but the point here is to understand the differences in the behavior. You are not data-driven if:

– Team members withhold data from others
– Team members are not able to get insights from data
– Team members do not know what core metrics are important for success

Again, if those items describe you (or your company), then you are not data-driven. You are fooling yourself, and others.

 

How To Use Data in a Data-Driven Company

I see someone as data-driven if they are using data as part of a process that is similar to the scientific method. Here’s how the statistician George Box described the process in a 1976 article called Science and Statistics:

I’ve borrowed the image from this post regarding how Netflix does A/B testing for their streaming service to improve customer experience. In that post, they discuss how Professor Box outlined in his article the use of deduction, data, induction, and theory in order to arrive at a conclusion that can best be described as “data-driven judgment”.

This is what a data-driven company does, every day. They have ideas, they collect data, they refine their ideas and keep iterating until they arrive at a decision.

If this does not describe you (or your company), then you are not data-driven.

 

Summary

You can’t just put up a survey on your website and claim to be data-driven. It takes a bit more than that. And when you do get data, share it with others on your team.