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Karl Aguilar

How Data Can Make You a Better Leader



When it comes to the attributes or tools that can help build good leadership, data is not something that is foremost in many people’s minds. After all, data is more about hard-coded information which, at face value, does not relate to anything about leadership.


But in reality, it is these insights that data provides that help a business make sound decisions. Whether it is to pursue a specific project or not, address anticipated demand for a product or service, or fix possible issues that may arise based on the findings gathered.


In addition, data defines and measures the metrics which can help quantify a leader’s effectiveness in delivering key metrics for the organization.


Data has much more to offer in helping leaders develop and grow in their roles in a number of ways.


1. Visibility


Data provides managers with a holistic view of their teams and of the ongoing processes that take place each day, from systems integrations to cybersecurity. Through this data, you can identify any blind spots in internal and external business processes, which enables you to direct the focus of their teams towards other aspects of the business that need greater attention.


2. Implement key technologies


Data collection is essential to implementing key technologies such as machine learning automation, which in turn can improve efficiencies and help expedite internal and external processes. This allows employees to work on more important tasks or projects that can help facilitate the organization’s growth without being hampered by having to do mundane, repetitive tasks.


3. Risk mitigation


As noted earlier, data collection provides an overview of a company’s daily performance. However, it can also be used to better understand the threats and risks it might face, as well as the impact these may have on the organization. As such, identifying them beforehand helps companies better prepare for them and implement risk mitigation issues early so the company can minimize the possible damage they might cause, if not avoid them altogether.


4. Employee sentiment and performance


Data can help leaders have a better understanding of how employees are feeling and doing. By relying on large-scale data collection and analysis, leaders can identify gaps in employee performance and address areas of weakness and other problems early. In addition, data from collected employee feedback on matters such as policies, stress, work-life balance, and overall relationships with colleagues and managers helps improve business performance: Being able to satisfactorily address employee concerns and keeping them engaged in turn leads to improved performance.


5. Diversity, equity, and inclusion (DEI) evaluation


Data can also be a valuable tool to measure employee demographics. This allows company leaders to evaluate and, if necessary, adjust hiring strategies to ensure diversity and inclusiveness in the workplace. And having a diverse and inclusive workplace improves business performance with a broader range of perspectives and ideas being considered, some of which might not have been thought of in the first place.


The other critical element


It must be said though that understanding the benefits of data is just part of the story. The other important aspect that leaders should remember is how this data is collected, analyzed, and interpreted. It is important that data is being gathered from the right sources and that the proper information is being gathered to avoid implementation errors. It also goes without saying that it is critical that data is interpreted in a proper and efficient manner in order to attain the benefits that we have enumerated here.


Understanding both elements of the data equation and ensuring the proper steps are done to ensure they are implemented correctly helps in developing leadership capabilities that are needed in ensuring the future growth of the organization.

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