Learn To Drive Change Management and Build Data-driven Culture

NewVantage Partners' 2022 Big Data and AI Executive Survey of Fortune 1000 firms reported that organizations continue to struggle to become data driven, with only 26.5% reporting to have achieved this goal. An organization becomes data driven when it maximizes the value of data it has, treats data as a strategic asset, and makes critical business decisions based on data. More than nine out of ten respondents felt that the primary challenges to becoming data driven were due to culture, people, and process issues. 

These results demonstrate the need to shift the focus toward building a data-driven culture and driving change management. Here are seven practical steps with real-life examples to achieve this:

1. Envision success and make a compelling case for change.

Ask, "Why do we need to change? Why now? What benefits will this transformation provide?" Then assess the current state, envision the future state, and map your plan to get there. 

At Reynolds, we aligned on five pillars that would make us data driven. Then, we assessed the current maturity (on a five-stage maturity scale) and came together on detailed plans to reach stage five. 

• Data-Driven Culture (organization-wide)
• Intelligence (AI/ML-powered use cases, advanced analytics engines) 
• E2E Data Management (reliable data, governance, optimal infrastructure) 
• Single Version of Truth (for key datasets)
• Upskilled Talent (data literacy, tool literacy)

2. Identify key barriers that are holding back transformation.

Identify the most pressing pain points in your organization and form an actionable plan to resolve these in a prioritized manner. Over the last few years, we have conducted a series of interviews and discovery workshops to identify pain points that typically derail data-driven transformation. These include: 

• Resistance to adopting new solutions and new ways of working.&nbsp
• Performance delays and issues with analytics and reporting tools.&nbsp
• Data illiteracy or a lack of understanding of what’s possible with data. 
• Manual work where too much time is spent on data blending and manipulation. 
• Inconsistent data or lack of harmonization and connection across data. 
• Limited impact, meaning limited value is gained from existing data.&nbsp

3. Map key stakeholders that you need to influence to drive the change. 

Start by listing all relevant stakeholders and map them according to their level of change impact and influence over change. Prioritize stakeholders that you need to "manage closely" and "keep satisfied." 

4. Set up a "change champions network." 

This network should comprise selected leaders who will enable change and drive adoption in their respective teams. Before the network is set up, be clear about why you need this network, what role the change champions will play, and what’s in it for them. Here are a few benefits: 

• Visibility to data-driven initiatives.
• Clarity on roles and responsibilities.<
• Opportunity to prioritize roadmap.
• Escalation of issues.
• Adoption of data-driven solutions. 

5. Inspire and engage the broader organization. 

The change should impact the entire organization, not just a few employees. Some of the ways you could engage the broader organization are: 

• Communicate your vision to inspire the organization. We ran a roadshow on data-driven transformation, which was attended by 180 colleagues across teams and seniority. Post roadshow, we asked senior leaders to assess the current level of understanding, the importance of being data driven, and the commitment to drive change. Thanks to upfront planning and clear communication, we received very high scores (3.8 out of 4 points). 

• Create a community of practice. We established a cross-functional "data-driven ambassadors" community that includes anyone who deals with data on a regular basis. Within three months, the community grew to 261 members (about 10% of office employees). 

• Recognize colleagues who apply data-driven behaviors. We introduced a "data-driven ambassadors of the month” award at Reynolds to award the top three colleagues every month. The nominations are sourced from the "data-driven ambassadors" community and winners are selected based on votes from senior leaders. 

6. Prompt them to apply data-driven behaviors. 

A habit takes a long time to form, so it is critical to remind people to exhibit the desired behavior. It’s important to send alerts about data-refresh, feature upgrades, and release of new solutions, as well as communicate regularly in relevant forums.

7. Upskill teams on data literacy and tool literacy to drive usage and adoption. 

Take time to proactively upskill resources linked to aligned use cases and desired outcomes across these three levels:

• Data Literacy:  Grow knowledge about datasets and applications. 
• Tool Literacy:  Provide training to adopt tools, and build and use dashboards. 
• Citizen Development Program:  Conducttraining to build use cases without writing codes. 

These seven steps will enable you to drive change and realize your vision of creating a data-driven culture. 

To measure the impact of change at Reynolds, we used three metrics:

• Understanding of data-driven vision and plan.
• Commitment to become data-driven.
• Application of data-driven solutions in daily work. 

We conducted semi-annual surveys (e.g., “Do you have clarity on data-driven plans?” on a rating scale from “not at all” to “completely”) to measure the current state of our data-driven culture among key stakeholders. We achieved high scores ranging from 3.4 to 3.8 on a 4-point scale on these metrics. 

About the Author

Jit is a global analytics leader with 23 years of experience driving profitable growth based on breakthrough analytics in leading global organizations. At Reynolds American, Jit is responsible for driving the conception and implementation of a state-of-the-art Data Analytics COE with focus on enablement strategy and capability building across commercial functions. Prior to this, Jit held various analytics leadership roles at Nestle, Coca Cola, J&J, and Mondelez. Jit is the Global CDO (Chief Data Officer) Ambassador for the State of North Carolina, and a member of the Forbes Technology Council. He is also on the Advisory Board for the Master of Informatics and Analytics (MSIA) program at the University of North Carolina, Greensboro. In 2017, Jit was awarded the “Researcher of the Year” award for developing and implementing a best-in-class toolkit for Integrated Marketing Communication. Jit has lived in the US, Singapore, and India.