How To Properly Evaluate Data For Better Business Decisions

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Business Strategy News

Data Analysis,Decision Making,Business Leadership

This article argues that business leaders should avoid blindly accepting or rejecting data presented to them. Instead, they should engage in rigorous discussions to assess the evidence's validity and applicability to their specific situation. The authors provide a systematic approach to evaluating data, including separating causation from correlation, considering sample size and generalizability, and looking for corroborating research.

When considering internal data or the results of a study, often business leaders either take the evidence presented as gospel or dismiss it altogether. Both approaches are misguided. What leaders need to do instead is conduct rigorous discussions that assess any findings and whether they apply to the situation in question.. To avoid missteps, you need to separate causation from correlation and control for confounding factors.

By employing a systematic approach to the collection and interpretation of information, you can more effectively reap the benefits of the ever-increasing mountain of external and internal data and make better decisions.When managers are presented with internal data or an external study, all too often they either automatically accept its accuracy and relevance to their business or dismiss it out of hand.

 

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