Having a data-informed culture is all about better decision-making. It’s using data to make informed decisions. In the words of H. O. Maycotte, “being data-informed is about striking a balance in which your expertise and understanding of information plays as great a role in your decisions as the information itself.” And it is in this place of balance that organizations can capitalize on huge opportunities. The MIT Sloan Management Review found that top-performing companies are three times more likely than lower performers to be sophisticated users of data – meaning those that know how and when to appropriately use data in their decision-making are more likely to outperform their counterparts. It also found that organizational management and culture rather than with data (itself) and technology are the primary barriers to effective use of data. If the obstacle to moving forward is with the organization itself, then the question really should be: How do we get buy-in from our organization so that we can begin to be sophisticated users of data?
It starts from the top. Leadership is critical to creating an organizational shift in culture. If your Executive Director does not understand the value of data and a data-informed mindset, this is where you must start. Educate through examples, case studies of similar mission and structure, etc. Executive leadership must see the value and begin to lead by example. Provide him or her talking points, statistics and numbers that help to advocate for change, demonstrations of analytics, and if possible, create a vision for what you are trying to do and the questions you are trying to answer (addressing your major obstacles or growth opportunities).
A vision map should be segmented into small enough pieces where you can begin to execute in a data-informed way. These segmented steps may include a series of small measurement pilots; by breaking the vision down into smaller pieces you are setting your organization up for small wins.
Do not underestimate the power of small wins - they should be celebrated in your organization. It may seem like you have only created a small ripple, but a series of small ripples (i.e., wins) can have a tidal wave effect later on.
Also, never underestimate the power of transparency – to your donors as well as your staff. As data begins to surface, there will be things you celebrate for having achieved a step in the right direction. But, data will inevitably tell you where you are not doing so well, and that too, should be celebrated. Knowing where you need to focus your attention (instead of playing a game of Marco Polo with your resources and constituents) allows you to pause, recalibrate, and get back on course to effective work. If we are honest, your staff probably already has a decent handle on what is or isn’t working since they are the ones on the proverbial “front lines;” your ability to validate data through their intuition and experience will build a more unified team. Yes, some may not see the value in data given their actual experience, but in this data age we live in, data will speak more loudly than any internal report.
With donor profiles changing and data being the new currency in town, nonprofits must be able to demonstrate the strategic use of data in their decision-making. Data does not have to trump experience; it must complement it. Federal and state agencies, large foundations, and the emerging new donor all require data for all funding. Organizations that can embed a data mindset (and appreciation for it) will be the ones that continue to thrive.
Remember that cultures never shift overnight. It will take time. Realistically, it may be at least a five year process, so give your nonprofit grace along the way.