"You need a data strategy" is sound advice. Yet it tends to land in the boardroom with the elegance of a lead balloon. The problem? It’s often confused with an operational IT plan.
Say "data strategy" in a meeting and watch executives squirm. While everyone will acknowledge that it's an important topic, the term conjures up images of confusing technical diagrams, visions of tedious roles and responsibility alignments, and a deep fear of creating the next armada of soul-crushing governance committees.
The core problem? Treating data strategy as an operational deep-dive exercise, and not as devising the engine that powers every business decision that matters. The good news? Effective data strategy is simple. All it takes are three questions that cut through the noise and drive action:
First: Where does data actually matter to your business? If the answer is "everywhere", that's probably correct, but it’s not a strategy. Stop trying to boil the ocean and focus. The strongest data initiatives start with precise pressure points – specific problems where better information drives immediate value. Treat data like a scalpel, not a sledgehammer. Don't analyze everything. Analyze what matters most.
Second: What's really blocking progress? New flash: It's rarely a lack of data, technology or data governance frameworks. The real culprits are usually organizational silos, hastily grown tech stacks, and–most tellingly–leaders who treat analytics as validation for decisions they've already made. Valuable data, however, creates change. If your data isn't making anyone uncomfortable, you're doing it wrong.
Third: How do we turn insight into action? Too many dashboards and fancy reports are where insights go to die. Give your teams clear guidelines and air cover to act on data – and expect them to wield this power. When teams and managers can act on real-time signals – and aren't punished for data-driven failures – you'll see undeniable results.
Remember: Most (data) strategies fail because they avoid organizational conflict. Like any good strategy, success lives in clearly making the hard decisions of what not to do. The most effective data strategies aren't the most complex. They target critical business needs, are clear on how to knock down barriers, and enable quick action.
This requires understanding how data powers the business to win. Start small, test fast, iterate at lightspeed and scale what works. In a market where everyone claims to be "data-driven," the winners aren't the ones with the thickest strategy documents – they're the ones making better decisions, faster, every single day. They're not writing their data strategy. They're executing it.