How to Use Behavior Change Strategies to Unlock a Data-Driven Culture
The move toward a data-driven culture
Many firms are trying to become more data-driven, but so far only a minority have succeeded. Across 57 large organizations, almost all senior executives (99%) reported that their firms are attempting to move towards a data-driven culture - but only about a third have succeeded.1
Why are corporations trying to make this change? Having a data-driven culture has compelling advantages. It can:
- Help develop strong business strategy2, 3
- Make the firm more competitive by enhancing product and process innovation4
- Lead to increased revenue and profitability5
- Improve operating efficiency5
References
- Davenport, T. H., & Bean, R. (2018, February 15). Big Companies Are Embracing Analytics, But Most Still Don’t Have a Data-Driven Culture. Harvard Business Review. https://hbr.org/2018/02/big-companies-are-embracing-analytics-but-most-still-dont-have-a-data-driven-culture
- Abbasi, A., Sarker, S., & Chiang, R. (2016). Big Data Research in Information Systems: Toward an Inclusive Research Agenda. Journal of the Association for Information Systems, 17(2). https://doi.org/10.17705/1jais.00423
- Davenport, T. H., & Kudyba, S. (2016). Designing and Developing Analytics-Based Data Products. MIT Sloan Management Review. https://sloanreview.mit.edu/article/designing-and-developing-analytics-based-data-products/
- Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2021). Does data-driven culture impact innovation and performance of a firm? An empirical examination. Annals of Operations Research. https://doi.org/10.1007/s10479-020-03887-z
- Brown, S. (2021, February 9). How to build data literacy in your company. MIT Sloan. https://mitsloan.mit.edu/ideas-made-to-matter/how-to-build-data-literacy-your-company
- Bean, R., & Davenport, T. H. (2019, February 5). Companies Are Failing in Their Efforts to Become Data-Driven. Harvard Business Review. https://hbr.org/2019/02/companies-are-failing-in-their-efforts-to-become-data-driven
- McAfee, A., & Brynjolfsson, E. (2012). Big data: The management revolution. Harvard Business Review, 90(10), 60–66, 68, 128.
- Pfeffer, J., & Sutton, R. I. (2006). Evidence-based management. Harvard Business Review, 84(1), 62–74, 133.
- Bridges, W., & Mitchell, S. (2000). Leading Transition: A New Model for Change. Leader to Leader Journal, 16.
- Data Strategy and Culture: Paving the Way to the Cloud (2020). Exasol.
- Storm, M., & Borgman, H. (2020, January). Understanding Challenges and Success Factors in Creating a Data-Driven Culture. Proceedings of the 53rd Hawaii International Conference on System Sciences. https://doi.org/10.24251/HICSS.2020.663
- Gartner (2017). Gartner Chief Data Officer Survey. Gartner. https://www.gartner.com/en/documents/3834265
- Marr, B. (2017, July 24). What Is Data Democratization? A Super Simple Explanation And The Key Pros And Cons. Forbes. https://www.forbes.com/sites/bernardmarr/2017/07/24/what-is-data-democratization-a-super-simple-explanation-and-the-key-pros-and-cons/
- Yagan, S., & DeLallo, L. (2019, February 14). Building data-driven culture: An interview with ShopRunner CEO Sam Yagan. https://www.mckinsey.com/business-functions/quantumblack/our-insights/building-an-innovative-data-driven-culture-an-interview-with-shoprunner-ceo-sam-yagan
- Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework (Third Edition). John Wiley & Sons.
- Kotter, J. P., & Schlesinger, L. A. (1989). Choosing Strategies for Change. In D. Asch & C. Bowman (Eds.), Readings in Strategic Management (pp. 294–306). Macmillan Education UK. https://doi.org/10.1007/978-1-349-20317-8_21
- The Impact of Stress. (2022, July 24). Psych Central. https://psychcentral.com/lib/the-impact-of-stress
- Shook, J. (2010, January 1). How to Change a Culture: Lessons From NUMMI. MIT Sloan Management Review. https://sloanreview.mit.edu/article/how-to-change-a-culture-lessons-from-nummi/
- Pfeffer, J., & Sutton, R. I. (2006). Evidence-based management. Harvard Business Review, 84(1), 62–74, 133.
- Stevens, L. (2019, October 24). Building a Data Culture: Lessons from the science behind habit formation. LinkedIn. https://www.linkedin.com/pulse/building-data-culture-lessons-from-science-behind-habit-phd-1f/
- Wei, L., & Yazdanifard, R. (2014). The impact of Positive Reinforcement on Employees’ Performance in Organizations. https://doi.org/10.4236/AJIBM.2014.41002
- Gohari, P., Ahmandloo, A., Boroujeni, M. B., & Hosseinipour, S. J. (2013). The Relationship Between Rewards and Employee Performance. Interdisciplinary Journal of Contemporary Research in Business, 5(3).https://www.academia.edu/8906635/THE_RELATIONSHIP_BETWEEN_REWARDS_AND_EMPLOYEE_PERFORMANCE
About the Authors
Lindsey Turk
Lindsey Turk is a Summer Content Associate at The Decision Lab. She holds a Master of Professional Studies in Applied Economics and Management from Cornell University and a Bachelor of Arts in Psychology from Boston University. Over the last few years, she’s gained experience in customer service, consulting, research, and communications in various industries. Before The Decision Lab, Lindsey served as a consultant to the US Department of State, working with its international HIV initiative, PEPFAR. Through Cornell, she also worked with a health food company in Kenya to improve access to clean foods and cites this opportunity as what cemented her interest in using behavioral science for good.
Dan Pilat
Dan is a Co-Founder and Managing Director at The Decision Lab. He is a bestselling author of Intention - a book he wrote with Wiley on the mindful application of behavioral science in organizations. Dan has a background in organizational decision making, with a BComm in Decision & Information Systems from McGill University. He has worked on enterprise-level behavioral architecture at TD Securities and BMO Capital Markets, where he advised management on the implementation of systems processing billions of dollars per week. Driven by an appetite for the latest in technology, Dan created a course on business intelligence and lectured at McGill University, and has applied behavioral science to topics such as augmented and virtual reality.
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