Latest / The Science of Leading / From Data Sprinkling to Data-Driven Decision-Making
Transcript
- 0:00Welcome back to Science of Leading, I'm Claire Monroe with Edwin Carrington.
- 0:03Edwin, I want to open with a gap that stopped me cold.
- 0:07Ninety-eight point six percent of executives say they aspire to a data-driven
- 0:11culture.
- 0:11Only thirty-two point four percent report actually getting there.
- 0:15That gap is the entire episode, Claire.
- 0:17Almost everyone wants it.
- 0:19Almost nobody achieves it.
- 0:20And the reason isn't ambition, it's that most companies confuse having a dashboard
- 0:25with being data driven.
- 0:26There's a phrase in the piece for that exact confusion, "data sprinkling."
- 0:30Which is precisely what it sounds like, bolting one dashboard onto an otherwise
- 0:34intuition-based process and calling it transformation.
- 0:38Real data-driven decision-making is consistent and repeatable across the business,
- 0:43not a report someone pulls up once a quarter to feel better about a decision they
- 0:47already made.
- 0:48So what does it actually look like in practice, day to day,
- 0:50not in a strategy deck?
- 0:52Concretely, it means hiring funnels get tracked all the way through,
- 0:55applicant volume, interviews, offers, and first-year performance,
- 0:59so you can see where quality actually drops off.
- 1:03It means turnover gets segmented, voluntary versus involuntary,
- 1:07by role, by manager, by tenure, so you know exactly where the company is bleeding
- 1:11talent instead of guessing.
- 1:13And it means behavioral profiles get compared against who actually succeeded in a
- 1:18role, building real fit benchmarks over time instead of relying on a gut sense of
- 1:22"we'll know it when we see it."
- 1:24And crucially, none of that requires removing the human from the decision.
- 1:28That's the misconception people default to.
- 1:31Using data doesn't mean stripping out humanity, it means using evidence to reduce
- 1:36bias, surface real patterns, and challenge assumptions about a candidate or an
- 1:41employee that nobody's actually tested.
- 1:44The data doesn't replace the manager.
- 1:46It gives the manager something better to argue with.
- 1:49Let's talk about why this took so long to reach mid-sized companies specifically,
- 1:53because the piece traces this back decades.
- 1:55Quantitative decision models go back to mid-century operations research,
- 2:00then finance and manufacturing picked it up by the eighties.
- 2:03People analytics stayed stuck in academic research and the largest enterprises for a
- 2:08long time after that.
- 2:10What actually changed recently is generative AI and better data integration tools,
- 2:15which made this accessible to a hundred-person company without a data science team.
- 2:20So the tools caught up to the ambition, even if the culture hasn't caught up to the
- 2:23tools yet.
- 2:24Exactly the mismatch, and it's why the culture question matters more than the
- 2:28technology question.
- 2:31Seventy percent of data modernization efforts fail specifically because of culture,
- 2:35not because the software didn't work.
- 2:37Which brings us to what I'd call the operating system underneath any of this,
- 2:41the foundations.
- 2:42Strategy, governance, data quality, literacy, culture, in that order,
- 2:47I think.
- 2:47Strategy first, because every metric you track needs to serve two or three clear
- 2:52business outcomes, cutting ninety-day attrition by a defined amount,
- 2:56improving first-year sales productivity.
- 2:58Without that anchor, you end up measuring whatever's easy instead of what matters.
- 3:03Governance next, because the moment you're handling behavioral profiles or anything
- 3:07protected-class adjacent, consent, role-based access, and compliance aren't optional
- 3:12add-ons, they're the floor.
- 3:13And data quality is the one everyone underestimates, I think,
- 3:16because it sounds boring compared to strategy or AI.
- 3:20It's the least glamorous and most decisive piece.
- 3:23Clean job titles, consistent exit dates, an actual agreed-upon definition of
- 3:28"regrettable turnover."
- 3:29Skip that, and every downstream analysis you run is suspect,
- 3:33no matter how sophisticated the model on top of it looks.
- 3:36And literacy and culture close the loop, because a great dashboard nobody can read
- 3:40or trust doesn't help anyone.
- 3:42Right, managers need to be able to read a basic turnover chart and interpret a
- 3:46behavioral profile without a translator.
- 3:49And leadership buy-in sets the tone for whether that becomes normal practice or a
- 3:53slide that gets shown once and forgotten.
- 3:56Democratize the access, or the insight stays trapped with whoever built the
- 4:00dashboard.
- 4:01If you want a behavioral starting point for building that kind of benchmark on your
- 4:04own team, OAD's free Top Performer Profile is about seven minutes,
- 4:09results in twenty-four hours, no credit card.
- 4:11That's O-A-D dot A-I.
- 4:13Consistency is the whole test.
- 4:16Not whether you have data, whether you use the same reliable data the same way,
- 4:20every time a real decision comes up.
- 4:23Perfect place to leave it.
- 4:24Thanks, Edwin.
- 4:25Always, Claire.