3 strategies for using data analytics in the decision-making process
1. Go all in
To realize the full benefits of data analytics, all stakeholders must first be aligned and fully committed to making key decisions based on data. It can be a radical cultural shift to move away from decisions based purely on gut instinct or a compelling argument. But relying on actual metrics regarding machine output and capacity, worker productivity, and sales trends to inform decisions can yield stronger results. If stakeholders are only partially committed, they might not see the improvement they’re looking for and withhold support. Additionally, employees might not adopt the full-scale cultural shift that’s needed if leadership fails to communicate the need clearly and as a united front. Metals leaders should consider implementing an organizational change management strategy to avoid adoption uncertainty in the organization.
2. Simplify
As metals leaders adapt their decision-making process to incorporate data analytics, they should identify ways to eliminate objectives that could slow progress. The question metals leaders should ask is not, “How can we use data analytics to improve every area of the business?” but rather, “Where might data analytics have the biggest impact?” Executives might start by focusing on capital planning, for example, because reducing capital expenses could have a ripple effect on keeping costs low. Once a few key areas have been highlighted, it’s easier to identify what data points need to be collected and evaluated, weigh the risk of potential changes, and create a road map to the future. Attempting to tackle too many problems at once can lead to slow or unrecognizable results. But smaller, simpler changes can lead to a scalable impact.
3. Get quick wins
Change can be difficult, but demonstrating the value of using data analytics in decision-making early in the process can help. Garnering quick wins can boost confidence and buy-in from key stakeholders, build momentum for future growth, and help refine the strategy moving forward. Especially when changes are kept simple, leaders should identify data points where the return on investment can be measured and demonstrated quickly. Rapid results can show what’s working, what’s not, and how to pivot in the right direction. These early improvements are critical in highlighting how data analytics can be a key factor for future success.
Start making smarter, more informed decisions today
Now is the time to put your data to work using the power of analytics. As you begin taking these steps toward better decision-making and greater agility, our team of specialists at Crowe is here to help you navigate the journey. Reach out with any questions you have about data analytics and how you can implement data-driven decision-making to bring your metals company into the future.
