Written by: Roxanne Deurloo, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
In the last few years, a lot more organizations embraced technology for their daily operations. They have implemented management software, automated their processes, and started to use Artificial Intelligence, Machine Learning, and Deep Learning. In this Digital Age we are in, having access to digital information is becoming obvious. The fast pace of the development of these new advancements is not slowing down any time soon. It will only generate more and more information in the years to come. However, it is very important to understand that having access to a lot of information does not guarantee success for a business. Information overload can even be catastrophic.
The digital world is developing tremendously quickly. Especially in 2020, organizations were somewhat forced to embrace technology for their daily operations if they had not done so already. But even before 2020, organizations were implementing management software and focusing on digital transformation—all intending to operate more effectively and efficiently. Management software can generate data automatically, which can be used for decision-making. Additionally, automated processes will mostly do the job less time with fewer errors and eventually lower costs. That sounds promising, of course.
The dangers of information
However, all of these software, systems, and automated processes generate new information and huge data. Suddenly, organizations will spend more time processing and analyzing all this data than they used to. For example, almost every software system can send automated emails to employees to remind them of pending tasks, resulting in jammed inboxes and employees losing their productivity because of it. Or, it is not clear what to do with all that new information. Hence, every bit of new information needs to be discussed in a meeting, resulting in employees attending more meetings than actually doing the work. Or, due to the huge amount of information, they analyze the wrong data and make the wrong decisions based on those analyses. In the end, this will only cost money. It can be very easy to fall into the trap of using all that information and to get lost in numbers.
Incorrectly using the information or lacking control can harm personal well-being, productivity, innovation, and decision-making.
How to use the information correctly.
It is no doubt that organizations need to incorporate the digital world into their businesses to stay competitive. It is a beautiful and promising development that can be of great use to businesses, but only embracing and implementing it will not achieve success. To be successful and create an even bigger value for their businesses, it is crucial to understand the context of the information and what is needed to increase the performance of their businesses. When data is used correctly, it can be incredibly valuable to ensure the growth of businesses.
The Digital Age has made it easier for organizations to connect with their audience and customers. Since (potential) customers also have access to a lot of information about a variety of services or products online and have the power to choose whatever suits them best, businesses need to understand the needs of their customers. Customer experience is the main focus area for many organizations. Going online and having digital processes helps immensely by enhancing the customer journey. This will speed up the workflows and make them more accessible for the customer. Even gathering feedback from customers has become very easy in the Digital Age.
Gathering data is not the end goal, though. The end goal is to utilize this data and turn it into information that can be used to make improvements and adjustments to processes and systems within a business. Eventually, businesses will be able to do more of the right things in less time and generate more profits. To achieve this, a few key elements need to be clear.
Organizations need to have a vision and mission statement, preferably agile, and translate these into measurable business objectives.
The current state of a business has to be analyzed to have a clear view of the current performance of a business.
The desired or future state of a business has to be analyzed and formulated as well. This will allow organizations to find the gaps that need closing. What needs to happen to get from the current state to the desired state?
Organizations need to know which systems and processes are primary and secondary. What is the core business? Which systems and processes have a direct impact on revenue?
Key Performance Indicators (KPI) and Performance Indicators have to be known. What makes the business perform? Which numbers are critical to making sure the targets are achieved? What is classified as performing well or poorly?
Key Results have to be formulated to be able to keep track of the progress. These are the milestones to ensure the business objectives are achieved.
If applicable, business objectives need to be aligned throughout the entire organization. Everything and everyone should be working towards the same end goals. Every department, every job role has a specific task to ensure achieving the mission of the business.
Based on all the above, data can be generated accordingly, and this varies per business. Having a plan to use the information correctly will increase focus and give a formula for data-driven decision making, which results in a higher-performing business and higher revenue. There are no distractions, and this helps to avoid an information overload. Honestly, all other data is only distracting from achieving the business objectives. For example, knowing exactly how much the number of followers on a social media platform has increased is useless information if the goal is to generate all the leads through the website.
Businesses who know exactly what makes their business run great, have their eyes on the prize, and use the information to adjust and improve their processes if needed, will grow faster than businesses who use information incorrectly or not at all.
Use the correct data and turn it into information necessary for enhancing your business. Skip the rest.
Roxanne Deurloo, Executive Contributor Brainz Magazine
Roxanne Deurloo is a Business Performance Consultant and Performance Coach who helps and guides entrepreneurs, small business owners, and professionals to turn their potential into performance. She focuses on performance management and making data-driven decisions.
In 13 years working as a Human Resources and management professional, she set up departments within a Health Care Organization after a merge and within an Energy Industry Company after the commissioning phase. She took them to the next level of performance by implementing automation and management systems. She also set up a Recruitment Agency before turning to entrepreneurship to help others increase their personal or business performance.
She believes there is always room for improvement, and you should always strive to create a more effective and efficient process. Do more of the right things in less time.
