Sometimes it seems we have data coming out our ears. From marketers to religious leaders, from school officials to medical providers, from farmers to baseball team owners, everyone wants to “see the data.”
Oh yeah, let’s not forget the taxman. From the time the first king came on the scene, there was a need for data. “How much did you make? Well, give me this much of it.”
And if the only reason you needed to keep accurate records was to keep the IRS off your back, it would be a simple matter of addition and subtraction. But as it turns out, data is much more valuable than that.
In recent years, much emphasis has been put on making data-driven decisions. After all, it just makes sense. Winston Churchill said, “Those that fail to learn from history are doomed to repeat it.”
Data to Decision
Data is not the be-all and end-all in the life of a construction contracting business. It is a tool that aids in making decisions when used wisely.
Human decision-makers can’t (and shouldn’t) be replaced; instead, they should be complemented by the power of data. A combination of common sense and practical experience gives data dimension and magnitude.
There are three essential reasons for that.
Data requires interpretation or extrapolation of insights.
Upcoming opportunities or pending disruptions depend on human cognition.
No decision stands on its own.
Taking Data-Directed Steps
Deciding to use your abundant supply of data (You already have it, why not use it?) to make better and faster decisions is part of your leadership challenge.
The first step is asking what data is meaningful – what needs to improve or what pain are you experiencing?
Then look to find insights that would produce a better outcome – for example, identify patterns or trends.
Finally, take action – make the decision.
“The companies that have moved to fact-based, evidence-based decision making—which is honed against managerial instincts—are simply making decisions superior to those of the companies that still make decisions based on gut feel. What these superior companies are doing differently is building an analytics ecosystem that really changes the value of what analysts can contribute, so executives understand all the linkages and connections and historical bases for their decisions. Consequently, they make wiser and more strategic decisions today than they were able to make before.” – Christopher C. Williams, strategy executive of J.P. Morgan Chase.
The shortlist of areas that can be examined includes:
Improved financial performance
Increased productivity
Reduced risks
Faster decision-making
No Longer Relegated to “Report Producers”
A recent Harvard Business Review study, The Evolution of Decision Making: How Leading Organizations Are Adopting a Data-Driven Culture, said, “Organizations at the forefront of analytics adoption create an ‘analytics ecosystem’ over time that encourages data-driven decisions. As a part of this, business users are forging deeper, more consultative relationships with analysts who in the past were simply viewed as ‘report producers.’”
We admit it. There was a time when those in the accounting industry were known as data entry report producers. That time is long past. Some might say, “We’ve come a long way, baby!”
Shameless Plug
The team here at The Profit Constructors cultivates “consultative relationships” with each of our clients.
It isn’t only about producing historical reports or having a pretty set of books to present to the tax preparer or the banker. (Although we do that.)
It is a matter of helping our clients move to fact-based, evidence-based decision-making to improve the health and well-being of their construction businesses.
Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:
Clients and customers
Employees and subcontractors
Vendors and service providers
Governmental entities
Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:
Remain informed
Avoid hassles
Reduce risks
Be future-ready
Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735