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Edition 475 – Data Informed

Written by Dean Robinson.

It’s a Subaru Outback Touring XT Wagon that’s made it’s way into our garage. As regular readers might recall, it’s been a long drawn out process that has led us to our first Subaru, and our first Japanese car. The fit and finish is simply incredible, the de-tuned WRX motor is a lovely, punchy thing to drive and the whisper quiet interior is comfortable, functional and top class.

The early favourite, the Lexus NX 350 F Sport, fell at the final hurdle. It led the pack from the outset, and continued to be at the top of the tree, as we entertained a wide range of alternatives.

Being an accountant at heart, I couldn’t help but put together a spreadsheet, assessing all the options we were considering. Length, width, ground clearance, power in kilowatts, price, you name it. All of the key markers were listed, along with 3 pros and 3 cons for each vehicle that was considered, visited in a showroom, sat in and evaluated, pre test drive. 20 cars all up. A bit OCD, in some respects but that was the level of analysis I insisted on, given this was such a big transition in terms of motor vehicles for us.

The data was important in terms of recording what worked, and what didn’t, about the various options.

The data helped me to understand the differences that were at play, when I was considering such a wide array of vehicles. On more than one occasion, I revisited a showroom to re-assess an option, when some more expert reading was undertaken, to determine whether or not I’d made an incorrect assessment.

In the end, it was whilst reading “The Human Being’s Guide to Business Growth” by my friend and colleague, Greg Chambers from Omaha, Nebraska, USA, that something jumped out at me. He remarked that we shouldn’t be data driven, but data infomed when making decisions in our business. And that was the case in terms of making a final decision. The data helped to narrow down the options but in the end, only 2 vehicles reached the point of being test driven. From there, it was the Outback that was the standout winner.

There’s so much data available in small and family businesses today, but for the most part, most owners don’t take the time to:

  1. Make sure the data is entered correctly.
  2. Analyse and interpret the data.
  3. Ask questions about what the data might mean.
  4. Scenario plan around alternatives available.

What then happens is that most businesses meander through the day to day, often relying on the gut feeling of the owners, more than anything else. Except, as I’ve often seen, that sixth sense can often be clouded by:

  1. Historical analysis, not forecasted outcomes.
  2. Old mindsets.
  3. Asking the wrong questions.
  4. Not seeking counsel from wide enough sources.

 What’s the data you rely on in your business, on a regular basis, and how are you using it to better inform you?

This Week’s Tip

“Numbers are reasons in disguise.”
Greg Chambers – The Human Being’s Guide to Business Growth – A Simple Process for Unleashing the Power of Your People for Growth – Business Expert Press – 2018 – page 145