The biggest differentiator between a growth-oriented CEO and an execution-oriented CEO is the former focuses on growing the business where the latter focuses on the day-to-day operations. In today’s society, we cannot afford to just be execution-oriented. The greatest growth-oriented CEOs are strategic by nature. They also know how important it is to leverage the expertise of others in overcoming the big strategic issues and obstacles to growth they are battling daily.
As we come out of this pandemic and get back to a place of normalcy, we need to be aware that the same ole tricks may not cut it. If we look around, a lot of businesses have already closed their doors for good. So what is helping those that are thriving in today’s economy?
RedRover is here to help answer those questions. We will be sharing the top 10 pain points that most every CEO is facing in 2021 — those gut-wrenching, keep-you-up-at-night issues – and how to navigate them and come out with your tail wagging!
Pain Point #4: Drowning in Data: How to Push Your Company From Reactive to Predictive
CEOs today have a wealth of data at their fingertips. As technology has continued to grow smarter, business leaders have gained access to a database of information that can inform their decision-making.
But there’s a catch.
CEOs receive so much data on a daily basis that they are drowning in it. A Deloitte survey of U.S. executives found that 67 percent were not comfortable accessing or using data from their resources. Similarly, 67 percent of CEOs surveyed in a KPMG study said they have ignored insights provided by data analysis in the past three years.
C-suite executives are quickly discovering that there is such a thing as too much data after all, and not every dataset is a good one. Determining the quality of your data ultimately boils down to three questions:
- Is it accurate?
- Is it objective?
- Is it forward-looking?
Too often, business leaders hinge their decision-making on data that is inaccurate, politically-motivated or reactive. Instead of tracking every piece of information you can find about your company’s sales and marketing efforts, hone in on the data that counts: leading indicators.
Predicting the Future
There are two main types of data indicators that companies use to keep tabs on their operations: lagging and leading.
Lagging indicators are reactive, telling you whether or not you reached a previous goal. For example, companies may track their sales revenue, products sold and deals won to determine whether their sales are exceeding expectations or falling behind.
Though valuable, lagging indicators are exactly that — lagging.
By the time you have enough data to begin tracking a lagging indicator, you are already behind. You can’t travel back in time and change what you did in the past, so if you are only measuring your successes through lagging indicators, it may take a while for you to see any forward momentum. These indicators only show you the outcomes of your efforts, while ignoring the smaller, everyday steps that lead up to those results.
On the other hand, a leading indicator is the closest thing the business world has to a crystal ball. It measures the progress you are making by tracking the ongoing activities that will help you achieve a goal. Leading indicators show you whether current initiatives and projects are working and allow you to make adjustments in real-time.
Moving From Reactive to Proactive
Incorporating leading indicators into your daily data diet is a simple way to hold yourself and your team accountable for their everyday actions.
For example, instead of only counting on revenue or deals won to tell you everything you need to know about your sales, start tracking the number of new leads contacted and the number of new meetings booked. Or if you know that content consistently earns you fresh leads and traffic, then track how many new blogs or forms of gated content you’ve published this month.
Don’t like what you see? Because these are all leading indicators, there’s still time to turn things around before the quarter ends.
The most data-savvy organizations use a combination of leading and lagging indicators. While leading indicators allow you to make continuous improvements to your daily operations, lagging indicators can help you reflect on what went right or wrong.
Changing the way your company tracks data is not something that will happen overnight, and some CEOs are so caught up in the weeds that they don’t know where to begin to become a more forward-looking organization. In these instances, outside consultation from objective advisors like RedRover may be exactly what you need.
RedRover is ready whenever you are.