Data literacy: tripping leaders up at the tech race finish line
Australia’s business executives are lagging behind other countries in adopting technologies such as AI and data analytics, according to the Productivity Commissioner. While local businesses are proactive with basic digital adoption, there's a noticeable lag when it comes to adopting more advanced technologies, such as data analytics and AI.
Taking that first step is often the hardest, but some are tripping at the starting line. In the never-ending tech race, businesses can have all the shiny AI tools they want, but if the employees using them don’t understand data, they won’t have the skills to derive insights from AI and will not invest to ensure accuracy, quality and timeliness of data to support the digital transformation and AI initiatives.
What makes data literacy so important?
The best decisions are grounded in successful business strategies, and the best strategies are informed by data. Data literacy looks at an individual’s ability to read, work with, analyse and communicate with data; in short, the capacity to use data confidently as part of their regular job, which is why it’s critical for business success.
From sparking innovation to identifying cost efficiencies, data literacy equips businesses and leaders with the added knowledge to make better decisions, but most importantly, it helps to develop a deeper understanding of the key control points in the business processes, which in turn help to envision new business models and drive efficiencies.
The OECD estimates that the productivity gains from upskilling managers could be three times higher than upskilling workers, and understandably so. If leaders cannot work with data efficiently, it can lead to inaccurate insights, wrong decisions and even mistrust of the very tools designed to empower better outcomes, such as AI. But if the benefits are so clear, why do some businesses still struggle?
Data literacy is a marathon, not a sprint
While chief data officers (CDOs) and chief data analytics officers (CDAOs) lead the charge in enhancing data literacy, they also face significant hurdles due to the sheer volume and complexity of data today. The abundance of data can often lead to confusion and indecisiveness, wherein the way forward becomes buried by overthinking or overanalysing information.
What’s more challenging is even if leaders can interpret data efficiently, they may lack the skills to communicate these insights to the broader business or the tools and resources to implement them correctly. This means that data literacy is not something that employees or leaders can be trained in immediately; it’s a continuous process, and you’re either working on it or behind.
How to approach an effective data literacy program
Getting buy-in
Making sure employees understand the value of data to the business is important, but it’s communicating the impact it will have on their careers and day-to-day work that drives these programs forward.
Finding the right tools
Finding the right tools is the next step to laying the foundation of any data literacy program, understanding what already exists within the business and what needs to be procured.
Building levels of access
Whatever the goals of the program are, employees will need access to the data they’re training to use. Is that data well understood, documented and trusted? Additionally, employees will need user-friendly access to data with tools that provide enough context not to overload them with unnecessary information.
Tailored learning and development
Recognising individuals’ varied learning styles is crucial. Effective data literacy programs must cater to these differences, as not all employees benefit from uniform training programs. The effort involved could be minimal if the tools being used are easy to adopt or are already being used by the business. Alternatively, if they have a steep learning curve, training materials may have to be developed by the business itself.
Sustaining the program
Once implemented, supporting sustained adoption and continuous learning is essential. This could involve regular meetings with employees and providing weekly tips and tricks for new ways to leverage insights from the tools they’re using. Alternatively, the experience could be gamified, giving participants badges or kudos for completing learning plans. Sustaining adoption helps foster a data culture within an organisation, one that promotes the value and use of data to improve decision-making.
Data literacy: enhancing the culture
Beyond equipping employees with the ability to leverage data for better decision-making, data literacy builds an empowered and loyal workforce. It not only creates a culture where everyone can drive the company’s success, but one in which employees are proactive in seeking insights and improving with every action they take.
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