Basics of Data Culture

A simple two step approach to building a strong data culture in any organisation.

Data culture is an essential and vast topic. But at the heart of it, it's about how much an organisation uses data and for what purpose. That's where the journey begins.

Before I get to those basics, I must confess how much I'm not typing here. Data culture is one of my niche, nerdy passions. I never tire of discussing it, and I could happily write at length on the practices, behaviours and beliefs that make up a leading data culture. Plenty of articles have done this, and on more than one occasion, I've done the same and created frameworks and principles for data culture.

However, I've realised these detailed bottom-up definitions fail to engage supportive but cynical senior stakeholders. One CXO, who was very supportive of the data transformation in their company, openly told me that data culture isn't a thing. What's needed at the start of a transformation is an elevator pitch that:

• People buy into as a definition of data culture;

• Gives stakeholders an active role in developing data culture; and

• Enables you to measure improvements in data culture.

It might sound like a tough ask but let's break this down.

How much are you using data?

It is surprisingly common to see "informed" discussions taking place without any data. Fortunately, this is a simple problem to bring to people's attention. Imagine two schools that are following a similar strategy. One is very much data led in how it works, and one isn't.

School without data

The students this year seem to be performing well. Their scores have improved, especially in Math and Science. The new teaching methods and curriculum changes appear to have been effective. We will continue using these methods next year.

Data-driven school

This year, the average student score across all subjects increased by 8%, with a notable 15% increase in Math and 12% in Science. These improvements coincide with our introduction of interactive teaching methods and a revised curriculum. Based on student feedback surveys, 80% of students found the new teaching methods more engaging. As such, we will expand these teaching methods to other subjects and aim for a 10% improvement in average scores next year.

On some level, these paragraphs are saying the same thing. On another level, they couldn't be more different.  

I recommend creating two paragraphs like this that relate to a hypothetical scenario in your organisation. Or, even better, create two summary PowerPoint slides that show the same contrast.

At its simplest, data culture is present when people make decisions in a company. A former Amazon executive gave this description to me. Amazon is one of the world's most data-driven organisations. His experience was that every meeting was supported with facts in Amazon, like our data-driven school. Whereas elsewhere he has worked, he has had to ask for more data as there wasn't enough in the original email/presentation.

The great thing about introducing people to data culture with this example is not just that everyone gets it, it also gives you a request to ask from your senior sponsor. "If you want this company to be more data-driven, you can help by refusing to make decisions off presentations that don't contain enough data. Soon you will set the expectation, and everyone will know to include data in your presentations."

What are you using data for?

The first time I produced a data survey, we asked this question, and the results were so valuable that I've asked it in every survey since. I now use it as an acid test to measure data culture.

The question gave five options. "In my area of the business:

• We don't use data;

• We use data for reporting;

• We use data to reduce costs;

• We use data to increase revenue;

• We use data to improve strategic measures (e.g. customer satisfaction)"

I was surprised the first year that most people selected that they don't use data or that they use data for reporting. They were honest and/or didn't understand that data could ever be about value.

As a data transformation team, this gave us a straightforward measure of data culture. What percentage of people believe they are using data in their roles to deliver value (by reducing costs, increasing revenue or improving strategic outcomes)?  

It also created an essential strand of work in the data transformation programme. First, we communicated with success stories that data work should be about value creation, and second, we set the expectation that all data should have an explicit value objective. We went as far as encouraging analysts to accept data projects only if they understood the purpose of the work. After four years, the survey results had reversed, from 60% saying they didn't use data or used it for reporting to 60% saying they used it to generate value.

Everything that can wait

There is a lot more to data culture than using it and trying to get value from it.  

No-blame attitudes and transparent working methods make it addressing technical debt easy.

Flat hierarchies and continuous learning environments support data innovation.

Clear accountabilities and thorough documentation are key enablers for data management.

However, all of this can wait and will come naturally once everyone is using data and trying to get more value from it this quarter than they did the previous quarter.

Elevator pitch

Bringing this together, if you have 2 minutes with a critical sponsor, here's an elevator pitch:

"I'm seeking your sponsorship and support for an initiative that aims to drive revenue growth and profitability by developing a robust data culture in our organisation.

At its core, a data culture involves two key shifts:

• First, setting an expectation that all decisions should be underpinned by data and facts, eliminating guesswork and vague statements like 'sales are up.'

• Second, reshaping perceptions about the role of data. It's not just for reporting; it's a strategic tool for reducing costs, driving revenue, and boosting customer satisfaction."

Can I count on your support and schedule a time for a more detailed discussion?"

If you want to learn how to get time with senior sponsors, I have a simple tip: work from places they frequently pass by. I have started and grown many relationships with board members at an HQ vending machine. No one will ever object to giving their time to someone who wants to transform and improve their company.

Let me know if you make this elevator pitch and want help on the next steps.