Most businesses rightly see data as a source for making better decisions. But the conventional data-driven approach often falls short because of common errors made by the decision-makers. Many leaders rely excessively on existing data that might not always address the issue at hand, or they pass key decisions to data scientists who don’t understand the business dilemma they’re trying to solve. Decision-makers are also prone to lead with a preference, arrive at a solution, and then find data to back it up.
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Alternatively, decision-driven analytics puts decision-makers at the center, resolving the common mismatch between analytics and actual business decisions. It starts from the decision that needs to be made and works backward toward the data needed. But it also requires more from leaders, who must shift the focus from getting answers to asking the right questions. This approach highlights the strategic importance of what we don’t know, underscoring the importance of intellectual humility. In fact, crafting the right questions is an essential and foundational step in the data-analysis process.
Action steps
1. Clarify the decision
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