How to Become a Data-Driven Organization with KPI Management
Leveraging data for better decision-making is a crucial component of improving your organization’s overall operations. Your organization’s data analytics should allow you to pinpoint areas where data insights can bring significant value.
Becoming a data-driven organization starts with applying data findings to your operations and decision-making.
Use data analytics to help your organization reach higher peaks of performance and efficiency by identifying opportunities and planning and executing based on your findings.
Identify Opportunities for Data-Driven Operations
Utilizing your data analytics in your day-to-day operations starts with creating processes that incorporate your key performance indicators (KPIs). Our primary strategies for doing so include the following:
- Look for inefficiencies and bottlenecks in your processes
- Conduct A/B testing on new initiatives
- Leverage employee feedback
- Base decisions on KPI metrics
Look for Bottlenecks and Inefficiencies
Analyze operational processes to identify areas with high error rates, slow turnaround times, or frequent rework. Data can reveal root causes of these issues, allowing you to streamline processes and improve efficiency.
You can begin this process with the following practices:
- Map your existing processes
- Drill down your data analytics
- Utilize employee institutional knowledge
Map Your Process
Gaining a clear understanding of your existing operational workflows can help you easily pinpoint inefficiencies in your process. Charting hand-off points, total resources required, and which teams and departments are involved can help you understand where to apply data-driven insights to your organizational workflow.
Data Analytic Drill Down
Assigning a KPI to each step of your workflow makes it easier to track progress and make adjustments after initial changes are made based on data discoveries.
Looking past top-level data when measuring your KPIs can help you craft more carefully considered approaches to the bottlenecks and inefficiencies you do find.
Conduct A/B Testing
Any new organizational initiative that can have an assigned and measurable KPI can be A/B tested. Through an A/B testing framework, you can analyze data to determine which version performs better, allowing for data-backed optimization of your processes and offerings.
A/B testing can:
- Promote safe experimentation throughout your organization
- Build data fluency
- Prioritize data-driven decision-making
Leverage Employee Feedback
Employee feedback is crucial in any data-driven organization as it helps bridge the gap between data and reality. Data can tell a story of its own, but without the institutional knowledge of your employees at-hand, discovering the why behind your data can become a guessing game.
Quantitative data can only reveal so much, especially when you’re targeting hidden challenges or mining for innovative solutions. Encourage data fluency throughout your organization so when it comes to KPI management, employees feel empowered to point out proactive problem-solving solutions and help you monitor the reality behind the data and the decisions you might make from it.
Base Decisions on KPI Metrics and Grow Slowly
Wherever you aim to be with your data, integrating new data analytics dashboards and processes can be done incrementally.
Based on the KPI metrics that stakeholders identified, begin by implementing processes that can be used to monitor related metrics. This may be moving from a spreadsheet into a forecasting platform, which can be a short-term and inexpensive way to grow.
We’re Here to Help
For help assessing your current data structure and implementing more robust data analytics platforms and processes, contact your Moss Adams professional.