"Right now, the biggest challenge for organizations working on their data strategy might not have to do with technology at all." - Harvard Business Review
While the benefits of data-intelligence (i.e., combining data from a company’s software systems to automate reports and dashboards) are widely endorsed in private equity, the lack of adoption has been confounding, with only 26.5% of organizations reporting having established a data-driven organization (Bean, 2022).
The answer seems to be cultural, with nearly 92% of NewVantage's 2022 Partner survey respondents citing company culture as their main barrier to adoption. Over the course of 10 years, we've encountered that very issue in virtually every one of the 200+ clients we've worked with. And we've learned ways to overcome it.
"...becoming data-driven is about the ability of people and organizations to adapt to change."
Becoming data-driven requires thoughtful planning, and the author recommends these three driving principles:
Blue Margin's take on these principles:
Culturally, dashboards help people take ownership of their responsibilities, and we've seen effective data strategies with our clients lead results as significant as a 7% increase in profitability and a 50% decrease in turnover. (Read our Almo and CoolSys case studies for details.)
Has your team found success in adopting a data-driven approach? If you’re part of the 92% still working to adopt a data-driven model, we'd be glad to connect sometime to talk strategy.
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.
Bean, Randy (2022, Feb 24). Why Becoming a Data-Driven Organization is So Hard. Harvard Business Review. https://hbr.org/2022/02/why-becoming-a-data-driven-organization-is-so-hard?