Data: Third Priority of The CEO Six
Someone said to me the other day, “Inspect it so you respect it.” YES. And you can do this internally and externally. I have found senior teams and CEO’s to be all over the map with the reasons they don’t want to use data. Some leaders like the flexible nature of their organizations and don’t want to track anything yet so they can remain agile in their strategies. Others want to track data but feel overwhelmed by how to do it in a meaningful way. Because truthfully, you can waste a lot of time in “Data-land.”
Data drives change. Here are 10 ways:
Prove you do what you say you do.
Show alignment between your service or product and your Why.
Empower managers to supervise their teams effectively and consistently.
Write clear, achievable strategic plans.
Underperforming employees leave.
High achieving employees get credit.
Strategic discussions and decisions becomes easier.
People understand each other better because they are speaking the same language.
Tracking data leads to professional and organizational growth.
There are concrete reasons to celebrate.
“Prove you do what you say you do.”
There are many types of data worth exploring. The top ones for CEO’s and senior teams include Key Performance Indicators (or other types of milestone markers like OKR’s) and data tied to the organization’s HOW.
Key Performance Indicators (KPI’s) are actions which drive goal accomplishment. For instance, if you have high blood pressure, your doctor may suggest you take a thirty minute walk every day to lower your blood pressure. GOAL: Lower blood pressure. KPI: daily 30-minute walk for six weeks. If you take seven walks per week for six weeks, you have achieved 100% success rate with your KPI. This data tracking allows you and your doctor to discuss your health with more clarity and a shared language. KPI’s are actually very fun once you start using them because your team will get fired up over how to tweak them to get better outcomes and strategic discussions become rich. Introducing KPI’s to teams who don’t use them can be daunting, however. Patience is necessary as the team wraps their minds around it. The chief concern is that KPI’s may take away creativity and autonomy. That can be true for organizations who assign KPI’s. However, when employees are invited to collaborate on KPI development it gives them authority and creativity to imagine their future and take ownership over the results.
Data tied to the organization’s HOW is my favorite data to track. Most organizations with whom I work are not actively using HOW data. In fact, most organizations look at this type of data as unimportant and fru-fru. The reality is, this type of data is more impactful than any other kind.
Imagine a company called “Community Kitchens.” In order to understand the value of their How data, let’s look at their Why/How/What to understand the alignment between each. Their WHY is healthy communities. Their HOW is to promote family time. Their WHAT is residential kitchen remodels. In order to realize their WHY, they have to carry out their HOW as much as possible. Therefore, they remodel kitchens which will maximize family time so communities will be healthier. They believe families which are connected are happier, and happy families make happy communities. What is the number one data they can track to have a high fidelity to their brand? Kitchens that maximize family time - their HOW. So they may create kitchens which have open plans which blend the living and or dining room with the kitchen. They may put a half-wall between the kitchen and the living room so the person standing in the kitchen can see into the living area. They may have dining nooks inside the kitchen. Or they may make a central place to congregate in the kitchen which allows for collaborative cooking and eating all in the same general area. They may incorporate other types of entertainment in the kitchen area or intercoms connected to other parts of the house. When they achieve high marks from their customers on increased family time, they know they are getting closer to their ultimate WHY. And they can promote that as a part of their brand. When people make referrals, they say, “I love Community Kitchens - they are the folks who ensure you spend more time with your family with their creative use of space and materials.” Or, “Since I had my kitchen remodeled by Community Kitchens a few months ago, my family has only gone out to eat once. We have fallen in love with cooking at home together.”
Is Community Kitchens the only company which applies these strategies to kitchen remodels? No. They are just the only ones who measure if they are doing it, and because they measure it, they can claim it and build a brand out of it.
“Inspect it so you respect it.”
HOW data is a key ingredient to bringing an organization’s brand to life. And it is fun. Community Kitchens gets to do so many creative things with their HOW. For instance, they can have Family Time open houses at their factory HQ. And they can send a Family Time newsletter which covers all the principles of kitchens which are maximized for family time. These types of activities bring attention to their HOW, and remind the public what they stand for. And when they are successful at increasing family time with their customers, they know they are walking the walk of building healthier communities. Imagine an employee from Community Kitchens who says, “I love working here. I never thought remodeling a kitchen could bring me such purpose in my life. But when I see how families grow closer due to our work, I become more enthusiastic about what we do and how many homes we can reach.” That employee is now the best marketer for the business. How many strategies can Community Kitchens think of to maximize family time in the kitchens they remodel? It’s probably an endless number. And the employees can’t wait to think of them because it feels good.
HOW data confirms brands, inspires employees, and proves that organizations are walking the walk. KPI data gives employees individual control over their successes and allows them to see how they fit into the big picture for their organizations. Leaders who focus on these two types of data will be at the forefront of change inside and outside of their organizations.
Want to go deeper into The CEO Six?
The CEO Six Overview: Priorities that Matter Most