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Companies with strong leaders tend to outperform their peers by 2.3X in the rapidly evolving digital world. This begs the question: what do leaders need to do to boost their capabilities? The answer lies in their ability to make intelligent decisions that rely less on gut feeling and more on data-driven insights. C-level leaders that use data and analytics to eliminate functional silos, integrate people and process and enhance communication not only align decision-making with organizational goals but also spark disruptive innovation.
Unfortunately, few leaders are able to leverage the game-changing potential of big data due to traditional business practices, fear of disruption and ROI uncertainties. As digitization alters the playing field, business leaders can no longer afford to overlook the wealth of insights hidden in their data. Switching to a data native culture is imperative to achieving transformation at scale.
Here are two ways leaders can marry data analytics with their people management and communication strategies to enhance decision-making:
1. Linking people management to predictive analytics: Workforce planning is all about preparing for the future by leveraging people data to add tangible value to employee management. Powered by predictive analytics, C-suite leaders can ensure best-fit employees are hired, combine attrition risk with performance data to check churn rates, judge productivity, and boost employee benefit programs. Little wonder, 58% of the CEOs are actively using HR data analytics for their decision making. But to build analytics into the people management discipline, it is critical for leaders to develop the right analytical and critical thinking capabilities themselves. Enrolling in the right L&D programs can help leaders acquire agile analytics capabilities that can, in turn, help them quickly build a data-centric culture for bottom line revenue growth.
2. Incorporating analytics in communication strategy: An important mandate that leaders are tasked with is communicating with transparency, objectivity and rationality. Data analytics equips leaders with right information and insights to create a more connected environment and enable precise communications aligned with the long-term organizational strategy. Smart leaders use data analytics to enable proactive engagement with the employees and encourage participation in shaping the enterprise of the future. 59% C-level executives in India are already leveraging perspective and predictive analytics for decision-making across various levels.
By 2025, the number of connected devices such as smartphones, tablets will grow to 20 billion. By integrating data analytics across enterprise functions, C-suite leaders can drive unprecedented visibility, responsiveness and enhanced operational efficiency. However, setting up and driving analytics success requires the right data analytics capabilities and the ability to connect technical aspects of data management and analytical processes to business strategy. This means skilling in data and analytics must start at the top. Leaders with strong data analytics skills can effectively assess the current usage of analytics, both in the c-suite as well as across the enterprise, to effectively address gaps and future-proof the enterprise.