Do you lead with data rather than letting the data lead you? Take this quick test. Answer yes or no to the following statements.

• When I receive a report, the first thing I do is scan through all of the data to see what the report is telling me
• I first collect data and then determine what analysis to perform and what questions to answer.
• My presentations/papers are full of charts, graphs, and tables
• I pass along data and fact as I receive them in order to avoid introducing my bias or subjectivity.
• I diligently read all of the reports that I receive.
• I use standard, corporate reports to make decisions and take actions

If you answered “yes” to more than three you may be letting data lead you. As a result, you might not be as effective as you think.

Leaders who are led by data fall into some common traps:

• Thinking they are making objective decisions – no matter how hard we try our brain filters and distorts information
• Having the data lead them to the opposite decision that is needed
• Trying to ignore/remove their bias – it can’t be done. The trick is to learn how to change where and when it is used
• Seeking and collecting “all” of the data available– Less data will often provide a better answer than more data (what matters is that you are looking at the right data)

Good leaders understand their business and the story that is unfolding within it. They combine that understanding with data to create a more complete picture. However, they know that data is just one of many inputs they use to make decisions and take actions.

Here are a few tips for ensuring that you are leading with data:

1. Always use a question or hypothesis to guide your search. Don’t look at data blindly.

2. Build your own reports. Most corporate reports are created by someone whose job is to make reports not run your business. Those reports are often generic and not geared toward the decisions and actions you must take.

3. Interpret and recommend. Don’t just pass along data. People can’t make decisions from facts. Figure out what it means and share that. The closer you get to passing along a recommendation or interpretation, the faster you move to decisions and actions.

4. Remember the big picture. Any data you look at is just a piece of the full story. Instead of looking at the data in isolation, figure out how it ties to the bigger story of your business.

5. Get comfortable with reasonable and factual conclusions. There is no such thing as an absolute, “right” set of data. You can always find more. Instead ensure that you’ve asked the right questions and that your data leads to a logical solution. If it does, vet it with others but don’t keep searching for more data. You’ll never stop.

6. Harness your bias but keep it in check. Use your bias to generate questions rather than determine answers. Let the data confirm or refute those questions.