• My Listings
Expert Circle
  • Expert Panels
    Expert panel: What are the benefits of coaching and mentoring?

    Expert panel: What are the benefits of coaching and mentoring?

    Expert Panel: What is one change you recommend making to enhance culture and productivity

    Expert Panel: What is one change you recommend making to enhance culture and productivity

    Expert Panel: Hybrid working – What is the best model to move forward, how should time be split between home and office?

    Expert Panel: Hybrid working – What is the best model to move forward, how should time be split between home and office?

    Expert Panel: How to develop a content strategy

    Expert Panel: How to develop a content strategy

  • Get Featured
    Contribute to the panel: If you could only do one thing in an organisation to improve the sense of belonging, what would it be?

    Contribute to the panel: If you could only do one thing in an organisation to improve the sense of belonging, what would it be?

    Contribute to the panel: How do you deal with the negativity without letting it drag you down as the leader?

    Contribute to the panel: How do you deal with the negativity without letting it drag you down as the leader?

    Contribute to the panel: What are the benefits of coaching and mentoring?

    Contribute to the panel: What are the benefits of coaching and mentoring?

    Expert Panel

    Contribute to the Expert Panel: What are the important factors to consider before starting a business?

    Contribute to the panel: How do you market to two different audiences?

    Contribute to the panel: How do you market to two different audiences?

    Contribute to the Expert Panel: What is one change you recommend making to enhance culture and productivity?

    Contribute to the Expert Panel: What is one change you recommend making to enhance culture and productivity?

  • Join Expert Circle
  • Media Pack
    • Branded Content
No Result
View All Result
Expert Circle
No Result
View All Result
Home Business Management

Why does data-driven decision making fail?

by James Chaplin
November 4, 2021
in Business Management
Reading Time: 4 mins read
0
Why does data-driven decision making fail?
681
SHARES
2.3k
VIEWS
Share on LinkedinShare on Twitter

As increasing amounts of data become available, businesses that are effectively harnessing it are pulling away from competitors. The digital universe is exploding, indeed by 2025, it is estimated that there will have been a 50 fold increase in online data available within just ten years. It is well known that data encourage well-informed decision making. Especially in a situation where there are various stakeholders with conflicting perspectives, hard data can act as the mediator, ensuring that business resources are allocated optimally.

However no strategy is infallible, and making decisions based on data does not always lead to optimal outcomes. Reasons include:

Mistaking correlation with causation and conclusion bias

Two events happening at the same time may or may not be linked where one may or may not be causing the other. There is a risk that superficial analysis can lead to conclusion bias. That is, the person doing the analysis has a personal opinion which they look to validate through the data. One of the most famous examples of this is the correlation between psychiatric disorders and recreational drug use. Is it the case that drugs cause disorders, or that people predisposed to disorders are more likely to take drugs?

Whilst there is a correlation, causation either way is not proven. Within the job market, an example of correlation over causation would be, the economy is growing and more people are employed. This is a great example of why diversity in the workforce is so important, as conclusion bias can be directly attributed to upbringing, socioeconomic status and peer groups. Having a diverse workforce neutralises this. With all this in mind, if your business has a culture of data-led decision making, having multiple people with different perspectives analyse the same data sets will give optimal results. An excellent book to read on this topic is the Black Swan.

Failure to implement insight-led outcomes

As data is integrated from various sources, the complexity can become overwhelming. At that point, there is a danger of paralysis by analysis. With so many variables, it becomes unclear what the correct course of action is, where instead of data being used to drive change nothing happens. Therefore at every step, there needs to be clarity on what the objectives are and how the data on hand can help answer that question. For example, now companies house allows for API integration, what this means is that recruiters could have the financial information about all their medium / large clients contained within their CRM.

That sounds impressive, but unless there is a clear outcome in mind, which will generate ROI, so what? So why not then create reporting that shows for all the key clients, what their year on year turnover and revenue growth is, so to help with resource allocation for key account management? i.e. with faster-growing clients allocate more resources, with loss-making clients, assign less.

Relying on low quality or inconsistent data

Data led decision making is dependent on the quality and consistent data. As an example, imagine you are analysing a client’s hiring activity over the past year as part of an annual review, but six months data is missing. Or, when you analyse hiring by role, jobs are not categorised consistently. Doing any kind of meaningful analysis becomes impossible. You are better off not trying, as the alternative is to make assumptions that could end up being faulty.

At Vacancysoft this is why we have strived to create a data set that is both high quality and consistent. This starts with our company coverage. In the UK, medium to large companies account for over two-thirds of all private sector employment, so our starting point is to monitor them comprehensively. Whenever they republish a job, we know. If they change their career centre, we track the new one. This means that with your key accounts, we are able to provide consistent coverage.

In the same way, our specialist data quality control process means that every posting is categorised using our proprietary taxonomy, so results in standardisation of job processing, meaning that you can analyse activity by client or market segment, without having to worry about false readings due to low-quality data.

If you would like to see how your decision making could be enhanced through vacancy data, contact us for a free consultation.

Share48Tweet170Share272SendShareSend

James Chaplin

Related Posts

black and white typewriter on white table
Business Management

Business criticism: how to manage it when starting a new venture?

February 13, 2022
4.6k
Expert Panel: What is one change you recommend making to enhance culture and productivity
Business Management

Expert Panel: What is one change you recommend making to enhance culture and productivity

February 3, 2022
9.1k
Expert Panel: Hybrid working – What is the best model to move forward, how should time be split between home and office?
Business Management

Expert Panel: Hybrid working – What is the best model to move forward, how should time be split between home and office?

February 4, 2022
8.9k
two women talking while looking at laptop computer
Business Management

Hybrid working: how to make it work for your organisation

February 2, 2022
1.9k
man and woman sitting outdoors
Business Management

How can you effectively collaborate remotely with your team?

February 1, 2022
1.2k
people sitting on chair in front of table while holding pens during daytime
Careers and Education

The three phases of Management Consulting Recruiting

January 28, 2022
1.4k
person writing on white paper
Business Management

Entrepreneurs: top tips on how to scale your business

January 28, 2022
1.3k
Expert Panel: How to Reach Out to a Recruiter
Expert Panel

Expert Panel: How to Reach Out to a Recruiter

November 18, 2021
8.1k
When is the right time to start a business
Business Management

When is the right time to start a business

October 18, 2021
2.5k
Expert Panel: Recommended resources before starting a business
Business Management

Expert Panel: Recommended resources before starting a business

August 19, 2021
9.5k
Next Post
Contribute to the Expert Panel: Hybrid working – What is the best model to move forward, how should time be split between home and office?

Contribute to the Expert Panel: Hybrid working - What is the best model to move forward, how should time be split between home and office?

blue and white bear illustration

How to increase Twitter engagement in 2023: 4 Steps

10 tips on how to write engaging social media posts

10 tips on how to write engaging social media posts

Call to Action

Categories

  • Book Club
    • Book Review
    • Business Library
  • Business Management
    • Accounting
    • Careers and Education
    • HR & Recruitment
    • Startup
  • Current Affairs
    • Notes From Ukraine
  • Expert Panel
  • Finance
    • Investing
  • Get Featured
  • Leadership
    • Motivational
  • Lifestyle
  • Marketing
    • Blogging
    • Design
    • Digital Marketing
    • Email Marketing
    • Networking
    • Podcast
  • Sales
    • Objection Handling

Advertisement

Black Friday Week 2021 v2

Categories

  • Book Club (107)
    • Book Review (18)
    • Business Library (83)
  • Business Management (28)
    • Accounting (1)
    • Careers and Education (2)
    • HR & Recruitment (6)
    • Startup (6)
  • Current Affairs (17)
    • Notes From Ukraine (17)
  • Expert Panel (11)
  • Finance (1)
    • Investing (1)
  • Get Featured (10)
  • Leadership (34)
    • Motivational (12)
  • Lifestyle (9)
  • Marketing (60)
    • Blogging (17)
    • Design (1)
    • Digital Marketing (22)
    • Email Marketing (1)
    • Networking (4)
    • Podcast (2)
  • Sales (4)
    • Objection Handling (1)

An Award-winning Platform

Top categories on Expert Circle

  • Book Club
  • Business Management
  • Leadership
  • Marketing & Sales

Opportunities on Expert Circle

  • Branded Content
  • Promote Your Website
  • Media Pack
  • Get Featured
  • Expert Panels
  • Terms and Conditions
  • Privacy Policy

© 2021 Expert Circle

No Result
View All Result
  • All posts by Experts
  • Get Featured
  • Expert Panels
  • Promote Your Website
  • Branded Content
  • Media Pack

© 2021 Expert Circle

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.