How to Become a Data-Driven Organization

Easily accessible, real-time data allows you to spot opportunities you might have missed, put resources where they'll do the most good, and stay one step ahead of your competitors. 

Instead of wrangling data from different teams and drowning in spreadsheets all day, imagine being able to focus on what matters — essentials like keeping an eye on the market, coming up with smart growth plans, and making your operations run like a well-oiled machine. That’s all possible because you have all your important data right at your fingertips, neatly organized in digestible dashboards. 

But to become a truly data-driven organization, you know you’re up against widespread adoption and getting all your teams on board. Not to mention, a big implementation sounds daunting. It can be tough. But you know the benefits of embracing data-driven decision-making are too good to ignore. And getting started isn’t as hard as you may think.

Here’s where to start.

3 Key Principles to Transform Your Organization into a Data-Driven Powerhouse

If you feel like the shift to becoming a data-driven organization is impossible, you’re not alone. NewVantage's 2022 Partner survey revealed that nearly 92% of respondents said company culture is the main barrier to data management system adoption. 

As you’ve probably experienced, it’s hard to get different teams with varying responsibilities, motivations, and expectations all on board with something new. But if we’ve learned anything in over ten years of doing just this, it’s that company-wide data adoption comes down to three driving principles.

1. Ditch Assumptions for Data Dashboards

Visible data is the first step. If everyone’s relying on assumptions, guesses, or biases to make decisions, no one’s winning. That’s where data dashboards come into play. A central, well-crafted dashboard makes it easy to see where and why your business is underperforming, spending too much, or where to increase efficiency — or better yet, profits. 

Here’s a good example of what a dashboard looks like. Once everyone has access to dashboards that surface real-time, relevant data, they’re able to do their job more effectively. And who would say no to that?

2. ABI: Always Be Iterating 

“That’s how we’ve always done it” cannot exist in data-driven organizations. You have to foster a culture of continuous improvement to stay on the winning side. Use your goldmine of data intelligence to figure out friction points in your processes or strategies, then iterate on those to keep going. As you get into a rhythm of iterating, you’ll unblock issues, bring clarity where it’s needed, and increase efficiency in the process. 

3. Develop a Data Roadmap

Don't assume data projects are as time and labor-intensive as an ERP implementation. Instead, start by pinpointing key areas where better information will make an immediate impact. You probably have a few in mind already. 

Whether it's tracking sales or keeping a closer eye on inventory, focus on consolidating and visualizing that data first. As you tackle these quick wins, use what you learn to inform the next project, and the next, until all teams have easily-accessible data that’s relevant to them. This keeps everyone motivated and rowing in the right direction.

As your organization transitions from its current state into a well-oiled data-driven machine, it won’t be long until you start reaping the rewards, such as: 

• Better employee engagement 
• Smoother adoption 
• A sustainable competitive advantage 
• More potential for profit 
  
  

That’s all there is to it. Following roadmaps like this, one of our clients, an industrial distribution company,  boosted profits by 7%, while a commercial services firm cut turnover by over 50%. 

Solutions, Savings, and Time-Savers: All This and More in Your Data

What insights are hiding in your data? A clue into your supply chain problems, an unrealized profit maximizer, or simply a time and frustration saver? Whatever challenges or opportunities your organization is facing, your data is waiting to work harder for you to get you to the next level. 

Whether you need help coordinating your organization’s efforts, aligning your team on priorities, or designing reports to drive sustainable profitability, our managed data service is customized to suit your firm’s needs. 

There’s a dashboard with your name on it, ready to show you the big picture and ready to get down in the nitty gritty. Let’s make it happen. 

About Blue Margin

Blue Margin helps private equity and mid-market companies quickly convert data into automated dashboards, the most efficient way to create company-wide accountability to the growth plan. We call it The Dashboard Effect, the title of our book and podcast. Our mission is to deliver breakthroughs early and often - within your timeline and budget.