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The Three Big Objections to Data (and why they’re nonsense)

Posted by: John Dillard | Posted on: April 4th, 2012 | 2 Comments

Big Sky is often in the position of helping clients solve tough problems using evidence, but we’re often surprised by just how resistant to evidence many organizations are.  Particularly with all of the “big data” talk lately, leaders and managers are usually skipping a key prerequisite: overcoming the fundamental objections to using evidence in the organization.

Across many industries and government, I’ve narrowed down these objections to three biggies, and I call them the “Three C’s” of data objections:  Competence, Cost, and Culture.

The Competence objection is the misguided assumption that collecting data is just too hard.  We hear this one all the time, particularly from organizational leaders that just aren’t used to making decisions with data.

The Cost objection is focused on an expectation that data collection must always be time consuming and costly. Many of our clients assume that data collection and/or evidence collection is inherently reliant on many man-hours and expensive systems.

The Cultural objection is simply the belief that evidence isn’t necessary or useful to make decisions.  This is the typical refrain from companies or organizations that have had success in the absence or data, or believe that their intuition or “gut” is just as effective.  This is a pervasive belief not restricted to leaders, but to everyone in the organization, making adoption of data particularly difficult.

The bottom line, however, is that each of these is a red herring.  With all the talk of big data, leaders need to recognize that even small data can make each and every decision better.  Tom Davenport of Babson College posted just last week in Harvard Business Review’s blog:

“. . . you don’t need big data, or even big support from senior management, to foment your own revolution in organizational decision-making. With small data to be found
everywhere, there is no excuse not to improve your own judgment calls.”

There are a number of effective tactics I have seen organizations use to overcome these objections, and anyone can put them to work — regardless of his or her level in the organization.  The table below summarizes three tactics that you can use in your organization for each objection.

Objections        Countering Tactics
Competence

It’s too hard

  1. Ask fewer questions. Instead of collecting 10 data points, collect one and see where you are. In many cases, a little data is better than a lot, and always better than none.
  2. Don’t over-analyze. Start with simple reviews of “small data” before moving on to complex statistics. For very small data sets or anecdotes, a simple eyeball test will do. Decide later if you need to get crazy with things like neural nets and simple mean imputation (odds are, you won’t; if you do, you’ll know enough to do it right).
  3. Don’t do it yourself. Draw on public or private communities of expertise to analyze broad trends, like in markets. Look for public data sets on similar topics, or purchasable research that’s close enough.
Cost

It’s too expensive

  1. Don’t be a sucker for big tech; use cheap or free tools. You might not need that big Business Intelligence Suite. Try using lighter, easier tools like SurveyMonkey and analytical and visualization suites like Tableau. You can always upgrade later. Be a guerrilla data collector.
  2. Be FAST; set aggressive deadlines. Nothing consumes time inefficiently like a loose deadline on a research project. Set unreasonably tight deadlines and iterate the results after each one.
  3. Keep the scope narrow. Be very specific in the decision you are making, what data you need to make it, and what the boundaries are. Don’t collect and analyze data you don’t need!
Cultural

Data is only necessary for scientists and fantasy football

  1. Educate. Nothing makes the case better than rolling out 100 examples of where peoples’ “gut” is dead wrong. These are very easy to find. One of my favorite books on the subject is The Science of Fear by Dan Gardner.
  2. Enlist opinion leaders. Find the people in your organization that people view as leaders, and enlist them in a commitment to evidence-based decision-making.
  3. Insist. Leaders in particular, but also every employee, can start a revolution by insisting on data — even a little bit — before a tough call is made. Just by asking the most basic of questions to confirm the facts, you are doing your part.

 

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  1. Todd - Reply
    April 5, 2012

    Great summary… love the three C’s catch

  2. tom read - Reply
    April 5, 2012

    great post!

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