The Growth and Power of Data Strategy: A Guide for Executives

The Growth and Power of Data Strategy: A Guide for Executives

by Gwen Garrison, PhD, High Sierra Insights 

In today's data-driven business landscape, a robust data strategy is no longer optional—it's imperative.  The growth and power of data strategy has been developing for decades and now is critical for organizations to develop skills, knowledge, and dedicated expertise to enhance an organization's decision-making capabilities and competitive edge. How did this happen and how do senior managers get going?

The Foundation: Statistical Expertise

At the heart of any data strategy lies a strong foundation in statistics. Statistics is routinely taught as part of business and psychology programs but is also now integrated into computing science. 

This expertise enables organizations to:
1. Identify patterns through descriptive statistics.
2. Compare key groups using comparative statistics.
3. Forecast trends with predictive analytics.

While these skills are typically honed on small datasets, their application to complex, large-scale data is where true value emerges for executive decision-making.

Systems-Based Approach: Mitigating Cognitive Biases

Just as statistics coalesced as an academic discipline in the last century, so too did systems-thinking. This is the ability to see the whole, take a larger perspective, and consider external forces at work on many problems. A systems-based perspective is crucial in data strategy, serving as a counterbalance to inherent human biases. 

The Dunning-Kruger Effect, for instance, can lead to a significant overestimation of one's abilities. By adopting a systematic approach grounded in complexity and cognitive systems thinking, senior managers can bridge the gap between perceived and actual performance, leading to more accurate insights and decisions.

Strategic Asset Management

While data itself has been around since computers, perceiving data as an organizational asset has only gained traction in the last two decades. Data has evolved from a mere organizational resource to a valuable strategic asset. 

This shift necessitates deliberate management practices, particularly in light of security and privacy concerns. Executives must now view data strategy as an integral part of overall business strategy, requiring the same level of attention and resource allocation as other critical business functions.

Driving Organizational Improvement

When you bring together statistics, systems-based thinking, and data asset management you get data strategy.

At Strategico, we've seen that successful data strategies often begin with digital transformation initiatives aimed at operational efficiency and enhanced analytics. However, to maximize the impact of these efforts, executives must prioritize data strategy alongside other key organizational priorities.  Include data in our strategic goals and priorities  and manage and monitor them as with any other of your strategic priorities.

By embracing these core elements of data strategy, executives can position their organizations to make more informed, data-driven decisions, ultimately driving growth and maintaining a competitive edge in an increasingly data-centric business world.