Does A Data-Driven Culture Need To Be Implemented From The Top Down?

In a recent report by the Aberdeen Group, organizations classified as data-driven were found to experience a 27% year-on-year increase in revenue, as opposed to 7% for other organizations. Furthermore, 83% saw their process cycle times improve, compared with just 39% of those organizations not classified as data driven, and 12% cut their operating expenses from the prior year, compared to 1% of other organizations.

The benefits of adopting a data-driven culture are many and persuasive. For one, a focus on fact-based insights will greatly reduce the number of arguments within teams as there is less of a reliance on ‘gut instinct’ – a fairly nebulous concept that will often run contrary to someone else’s. A data-driven culture empowers everybody in the organization, regardless of their experience, to bring their ideas to the table, so long as they are supported by the data. They can also identify patterns of customer behavior and potential procedural improvements that only they may be in the position to see, driving innovation while also reducing risk. This also improves staff morale, with employees considering themselves more valued as their ideas take on a higher importance.

Changing the culture of an entire company is incredibly difficult. The importance of making decisions based on data must be constantly reinforced through various mechanisms until it is completely ingrained in the fabric of the company. It needs to be incorporated into every aspect of business strategy, based on business goals, company culture, and business intelligence landscape within an organization. This drive needs to come from both top and bottom, with everyone pushing to ensure that data is being put behind every decision. We recently sat down with David Gainsboro, leader of the Recruiting Analytics Practice at Dropbox, to discuss how best to implement a data-driven culture, as well a range of other issues around data analytics. He will also be presenting at the HR & Workforce Analytics Innovation Summit, which takes place this June 19-20 in San Francisco.

How did you get started in your career and what first sparked your interest in analytics?

I began my career in Sales. I love building relationships with customers and helping them explore and eventually solve challenges.