Tag Archives: data-driven

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Let Your Data Do Its Job

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It is likely that most business owners and other company leaders in America today often describe themselves as “data-driven” decision-makers and strategy builders; data driven is such a self-affirming and empowering term. In Real Time, though, it’s more than likely that rather few business owners and leaders are living the dream. Oh, many, if not most, subscribe to software-as-a-service financial tools, like NetSuite and Microsoft Dynamics 365. They’re also hooked up for customer relations management, thanks to HubSpot and Zoho. It’s almost a given that a growing number of them have waded into Artificial Intelligence, probably starting with an AI-powered chatbot, maybe provided by Ada. Some may have already advanced to an AI digital assistant that will, by human command, expertly perform a variety of routine administrative tasks, such as scheduling meetings, sending standard emails (like vendor onboarding correspondence), or conducting research.

So business owners and leaders are mostly all-in with tech advances—I guess it makes them feel in control and secure. But the real question is, do business owners and leaders—you—understand and trust the data? Are you able to rely on the story your data tells you, the scenario it reveals? If your key performance index (KPI) metrics indicate that all is bubbling along as intended, I’m sure it’s safe to say that you understand which numbers indicate good news. But if one or more KPIs signal an anomaly that could be a warning of developing trouble ahead, would the message communicated by your data push you to take an action of some sort? When a red light is flashing, what will you do and when will you do it?

Do you take advantage of the precious resource of time that your data can give you and use it to take a second look at what may be an unexpected bump in the road? Maybe a KPI metric that’s tracking in the wrong direction will inspire you to check out another KPI to get another perspective on the number that you find rather worrisome? A truly data-driven leader strategy has faith in the scenario that the numbers reveal; those who understand and trust their information have confidence in the story that the info tells them, whether the description is a random shiver, or an obstacle that calls for a strategy and a plan to implement it. In other words, what separates winners from also-rans often comes down to one fact—when its time to make an impactful decision, what’s your usual response? Does your data play a starring role, or does it make only a cameo appearance?

Being data-driven means much more than access to reliable information. How and when you typically engage your info when there’s a potential problem to resolve, or a decision on the table—and even when good fortune allows you to enjoy smooth sailing for a while? So, if your relationship with your data resembles a standing appointment, a special occasion meeting that you faithfully keep once a month, it’s time to join the 21st century? Business owners and leaders who are data-driven IRT know that consistent attention to the data is how you leverage the resource. Identify a small set of meaningful “go-to” metrics—KPIs— to consult because you know they reveal pivotal aspects of company performance. You might choose to follow certain CRM marketing metrics; you’ll definitely refer to your monthly financial statements—Balance Sheet, Cash-flow, P & L—and take a once-a-week peek at, business vital signs that shine a light on basic functioning, such as top line revenue, operating margin, operating cash-flow and the quick ratio calculation. The goal when reviewing your numbers is not to sweat every small fluctuation, but to notice and investigate repeating patterns that could signal the need for a response.

Business owners and leaders who know that the best results are achieved by those who pay attention and act when necessary, avoiding the trap of analysis-paralysis. Verification is a good thing, but refusing to heed the story your KPIs tell you is a waste of your investment in data. It is sometimes wise to wait and see, to confirm the context and avoid a hasty response. But many owners and leaders of also-ran companies tend to hesitate when the picture the data reveals is clear, but perhaps unexpected. Being data-driven is about knowing not only which metrics matter, but also having the discipline and confidence to take action before competitors or other marketplace factors get there first. Winners are able to both interpret the data outcomes and trust the evidence, even when it challenges assumptions. That discipline is what ultimately turns data into a long-term advantage. Companies that consistently outperform others tend to:

  • Monitor KPIs—identify a small set of meaningful metrics to track
  • Look for pattern verification—do two or more metrics indicate that something needs your attention?
  • Make a course correction when necessary
  • Learn quickly from results

Make reviewing reports a weekly activity

The many demands and uncertainties of the 21st century marketplace have expanded the responsibilities required to effectively manage a business. Being data-driven means much more than access to reliable information. How and when you typically engage your info when there’s a potential problem to resolve, or a decision on the table—and even when good fortune allows you to enjoy smooth sailing for a while? So, if your relationship with your data resembles a standing appointment, a special occasion meeting that you faithfully keep once a month, it’s time to join the 21st century. Business owners and leaders who are data-driven IRT know that consistent attention to the data is how you leverage the resource.

Monthly, or even quarterly, reviews of certain reports were once standard—but if you aim to be responsible steward, it will be necessary to be more vigilant. By the time a quarterly report suggests that a certain development could be a problem, the trouble may have been brewing for weeks. Even a monthly review of KPIs can give too much of a head start to a matter that’s about to become urgent. One of the ways that stronger organizations maintain an advantage is to proactively pay close attention to business activity. Smart owners and leaders check their guiding KPIs frequently and, depending on your business, that could be weekly, or even daily (especially if you operate a restaurant). Looking to see whether things are moving in the right direction and thinking about an intervention you can put into motion if they’re not, is standard stuff these days. You want trustworthy forecasting that helps you avoid unfortunate surprises. Hot points might include:

  • Change in customer demand patterns—are certain customers not reordering as often as they once did?
  • Weakening customer engagement—are your usual social media groupies responding to posts less frequently?
  • Early signs of margin pressure—are prospects hesitating and pushing back against your pricing?
  • Is a supply chain obstacle increasing the amount you pay to acquire what you sell, or are you waiting longer to receive orders?

Understand which customers deliver the most growth

Business growth can be misleading and make you surprised to find that what appears to be growth has a shadow side. Meaning, your Profit & Loss Statement can reward you with an increase in quarterly revenue and simultaneously punish you with a shrinking profit margin that’s occurring because the cost of producing or acquiring the products or services you sell have increased. If you decide against raising prices because you fear that customers will not accept an increase— A savvy data-driven leader will turn to the metrics to research questions like:

  • What factors have caused production or acquisition costs to increase?
  • How can your company more efficiently produce the product or service that is sold? If you can make better use of your time, what you gain can be applied to another task and that may save you money. If you acquire what you sell, research the availability of vendors who may offer a lower acquisition cost and attempt a supply chain remedy.
  • Consult your CRM data and learn which customer segments or acquisition channels have a positive impact on growth—bring in the most revenue, profit and your highest Customer Lifetime Value. Also, are there certain customers who generate the most repeat business and referrals?

Treat pricing as an experiment

Pricing strategy is one of the most powerful factors in any business and yet many organizations treat it like a permanent decision — something set once and revisit occasionally. You may find, however, that once you’ve decided whether your company’s market position— high end, mid-market, or economy and identified the optimum profit margin range needed to make the entity viable, you can be more flexible about the prices you set than you may have imagined. Why not approach pricing as a learning process that’s supported by your CRM data? They analyze how different segments respond to price changes or special discounts. It may surprise you to learn that what appears to be business growth has a shadow side.

Your P&L is showing you a nice increase in quarterly revenue but disappointing you with a shrinking profit margin—maybe because of a supply chain issue—you may not be boxed in by a competitor who can afford to price more conservatively. Maybe you can make a modest price increase and make it work?

  • Are certain customer segments more sensitive to price increases while others are resilient?
  • Is there a good strategy to help “sell” customers on your price increase?
  • Will a small price increase change customer behavior?

Experimentation doesn’t need to be complicated. Small controlled tests can reveal a lot about what customers can truly value. Price increases can be passed to new customers only. Long-term customers may be more likely to accept the increase when you contact them personally and explain your now higher production, acquisition costs, or other operating expenses. They will get it. Extending the payment terms to customers who may have difficulty adjusting to an increased price might also be a good solution. Over time, these insights and experiences may lead to smarter pricing decisions and healthier margins.

Thanks for reading,

Kim

Image: © The Corporate Finance Institute

Professional Development , , , , , , , , , , , , , Leave a comment

Adopt an Adaptability Attitude

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In a business environment experiencing constant turbulence—from both the advantages and downsides associated with the growing use of Artificial Intelligence powered software tools, to political struggles both domestic and international, to marketplace volatility—adaptability has become a prized leadership attribute. Leaders who can exhibit agility, resilience and foresight when yet another upheaval approaches, showing they can lead, and will not be derailed, by the slings and arrows of instability and uncertainty, stand out among their peers and competitors. Adaptability and its pillars—agility, forethought and resilience— have become the foundation for business transformation, innovation and leadership.

Do you consider yourself able to own the fundamentals of adaptability when the ground beneath your feet starts quaking and you’re wondering what your next move should be? Are you are able to steer the ship when big waves are crashing and causing your Freelance entity to rock and roll? Are you able to decipher when you should stay the course and when a pivot seems the better option? The practical definition of adaptability in a business sense may need some clarification. According to Marlo Lyons, an executive, team and career coach who hosts the Work Unscripted podcast, recommends that leaders prepare for 2026 and beyond should:

1) Model change-ready leadership. Among the many disruptive events that have occurred since the mid-20th century, unexpected shifts in national and global business conditions or new technology may appear and gain traction—like mobile phones (Nokia) and music (Walkman)—that impact the way we live and work. The adaptable leader will display behavior that transforms panic into calm as s/he interprets change and unpredictability as manageable challenges rather than a business threat. The adaptable leader shifts into crisis management mode and is prepared to make sound, data-driven decisions that support responsive strategy development while sharing information and rallying team spirit to maintain trust and productivity. Lyons guides her coaching and leadership development clients to “look through the lenses of growth, transformation and risk and align with that perspective and show that you’re thinking like a leader, shift your language from protecting the past to shaping the future.” She points out that responses such as “This is how we’ve always done it” demonstrate a lack of adaptability; it’s a weak excuse and should be avoided by those who aspire to function as an adaptable, effective leader. Try some version of these inquiries—“What might we gain if we reimagine this?” or “What would this look like if we started from scratch today?” Leadership is demonstrated by asking questions that encourage resourcefulness, creativity, strategic thinking, future-proofing and adaptability.

2) Take data-driven risks, be accountable for outcomes.  The adaptable leader possess the emotional intelligence to balance risk-taking, accountability and empathy when the team is struggling from change fatigue and maybe fear as well. Demonstrating empathy means helping people process the discomfort of change and the unknown while maintaining momentum and keeping both hands on the wheel. A leader who doesn’t attempt to gaslight the team and models transparency by acknowledging that change is often unsettling but reassures team members that s/he is there to help everyone maintain equilibrium while traveling through the unknown, able to meet important deadlines and deliver on mission-critical projects—is the prototype of an adaptable leader. Adaptable leaders create psychological safety and encourage performance consistency. The mission of an adaptable leader is to support your people through uncertainty while continuing to hold them to expectations—high-quality work and timely delivery. Empathy keeps stakeholders and team members engaged and accountability keeps everyone moving forward. Leaders who can demonstrate both will earn trust, model EQ and show the team, clients and competitors that you operate as an adaptable leader.

3) Listen, learn and grow. With the rise of AI, leadgen automation and the powerful algorithms of quantum computing, especially when paired with AI, continuous learning in the form of professional development, self-directed and expert-led, is no longer optional. Leaders aspiring to maintain their skill set understand how emerging technologies will impact their teams and the overall organization.

Adaptability and learning agility have become the foundation for business transformation, innovation, and leadership—in a word, excellence. Strengthening and consistently demonstrating your adaptability is an ongoing professional development seminar—and a required course for those who’d like to function as successful leaders in 2026 and beyond. Lyons says that adaptability is linked to the following:

  • Agility

Agility is the ability to not only pivot quickly when priorities shift, but to also bring others along with you—like your team and other stakeholders. It is not always necessary to blindly agree with every suggestion made by superiors or key stakeholders. Agile thinking is a core component of being forward-thinking and viewing change as an opportunity for innovation.

  • Resilience

Resilience means that you’re able to maintain your composure under pressure. Resilience is a characteristic that supports objective thinking, creativity and your personal best performance—while you’re in the midst of an unexpected turbulent event. Leaders who find a calm focus are prepared to manage the situation, starting with the ability to direct their composure to creating psychological safety for those on their team. Subduing fear and panic, as you know, brings both short and long-term benefits, most notably the ability to contribute and work at their personal best along with you, and thus enhancing productivity and loyalty to both you individually and the company. It will pay to be transparent and acknowledge, rather than attempt to deny, the difficulty of the market and the company’s financial challenges and directed team members to focus on whatever it is they can control. A leader’s continuing steadiness will provide clarity and consistency that allowed their team to keep delivering results amid constant disruption.

  • Foresight

Foresight separates reactive, seat-of-the-pants managers from visionary leaders. A prime differentiator between the two is the willingness to recognize that looking beyond whatever performance metrics are observed in the present to anticipate what tomorrow’s challenges could be. More than staying on top of current company performance and studying market data, as well as paying attention to what key competitors are up to—are there any noticeable pivots?—detecting and studying early signs of instability, or significant change, is how to avoid being blindsided. You always want to be positioned to assess potential remedies (or opportunity) and develop the right strategy in response.

But foresight that pertains to market shifts is just part of the equation. Leaders also need to have foresight in technologies innovation and understand the benefits and outcomes that explain the why and wherefor of leveraging them. Leaders who continuously research and map future capability needs, and upskill their teams to understand how and when to use emerging technologies, will demonstrate the strategic foresight and enterprise readiness that illustrate adaptable leadership.

Thanks for reading,

Kim

Image: © Spencer Platt/Getty Images. Midtown Manhattan July 29, 2025.