12 Reasons Why Data Is Important - The Council on Quality and Leadership (2024)

If you work in human services because you hate math, terms like “data,” “quantitative analysis,” or “pivot table” might sound scary. Don’t be intimidated! Data does not have to be complicated. Simply stated, data is useful information that you collect to support organizational decision-making and strategy.

The list below shares twelve reasons why data is important, what you can do with it, and how it relates to the human services field. You can also download ’12 Reasons Why Data Is Important’ to print out copies and share with your colleagues and other stakeholders.

1. Improve People’s Lives

Data will help you to improve quality of life for people you support: Improving quality is first and foremost among the reasons why organizations should be using data. By allowing you to measure and take action, an effective data system can enable your organization to improve the quality of people’s lives.

2. Make Informed Decisions

Data = Knowledge. Good data provides indisputable evidence, while anecdotal evidence, assumptions, or abstract observation might lead to wasted resources due to taking action based on an incorrect conclusion.

3. Stop Molehills From Turning Into Mountains

Data allows you to monitor the health of important systems in your organization: By utilizing data for quality monitoring, organizations are able to respond to challenges before they become full-blown crisis. Effective quality monitoring will allow your organization to be proactive rather than reactive and will support the organization to maintain best practices over time.

4. Get The Results You Want

Data allows organizations to measure the effectiveness of a given strategy: When strategies are put into place to overcome a challenge, collecting data will allow you to determine how well your solution is performing, and whether or not your approach needs to be tweaked or changed over the long-term.

5. Find Solutions To Problems

Data allows organizations to more effectively determine the cause of problems. Data allows organizations to visualize relationships between what is happening in different locations, departments, and systems. If the number of medication errors has gone up, is there an issue such as staff turnover or vacancy rates that may suggest a cause? Looking at these data points side-by-side allows us to develop more accurate theories, and put into place more effective solutions.

6. Back Up Your Arguments

Data is a key component to systems advocacy. Utilizing data will help present a strong argument for systems change. Whether you are advocating for increased funding from public or private sources, or making the case for changes in regulation, illustrating your argument through the use of data will allow you to demonstrate why changes are needed.

7. Stop The Guessing Game

Data will help you explain (both good and bad) decisions to your stakeholders. Whether or not your strategies and decisions have the outcome you anticipated, you can be confident that you developed your approach based not upon guesses, but good solid data.

8. Be Strategic In Your Approaches

Data increases efficiency. Effective data collection and analysis will allow you to direct scarce resources where they are most needed. If an increase in significant incidents is noted in a particular service area, this data can be dissected further to determine whether the increase is widespread or isolated to a particular site. If the issue is isolated, training, staffing, or other resources can be deployed precisely where they are needed, as opposed to system-wide. Data will also support organizations to determine which areas should take priority over others.

9. Know What You Are Doing Well

Data allows you to replicate areas of strength across your organization. Data analysis will support you to identify high-performing programs, service areas, and people. Once you identify your high-performers, you can study them in order to develop strategies to assist programs, service areas and people that are low-performing.

10. Keep Track Of It All

Good data allows organizations to establish baselines, benchmarks, and goals to keep moving forward. Because data allows you to measure, you will be able to establish baselines, find benchmarks and set performance goals. A baseline is what a certain area looks like before a particular solution is implemented. Benchmarks establish where others are at in a similar demographic, such as Personal Outcome Measures® national data. Collecting data will allow your organization to set goals for performance and celebrate your successes when they are achieved.

11. Make The Most Of Your Money

Funding is increasingly outcome and data-driven. With the shift from funding that is based on services provided to funding that is based on outcomes achieved, it is increasingly important for organizations to implement evidence-based practice and develop systems to collect and analyze data.

12. Access The Resources Around You

Your organization probably already has most of the data and expertise you need to begin analysis. Your HR office probably already tracks data regarding your staff. You are probably already reporting data regarding incidents to your state oversight agency. You probably have at least one person in your organization who has experience with Excel. But, if you don’t do any of these things, there is still hope! There are lots of free resources online that can get you started. Do a web search for “how to analyze data” or “how to make a chart in Excel.”

12 Reasons Why Data Is Important - The Council on Quality and Leadership (2024)

FAQs

12 Reasons Why Data Is Important - The Council on Quality and Leadership? ›

Data-driven leaders rely on actionable insights to navigate rough waters, and shine a light on all aspects of their operations. Trusted, actionable insights give leaders a superpower that helps accelerate the decision-making process, making it possible to adapt swiftly to every shifting headwind.

Why is data important in leadership? ›

Data-driven leaders rely on actionable insights to navigate rough waters, and shine a light on all aspects of their operations. Trusted, actionable insights give leaders a superpower that helps accelerate the decision-making process, making it possible to adapt swiftly to every shifting headwind.

What are the 5 importances of data? ›

Those five areas are (in no particular order of importance); 1) decision-making, 2) problem solving, 3) understanding, 4) improving processes, and 5) understanding customers.

What are four reasons why data quality is important to an organization? ›

Imprecise analytics, profit loss, unreliable business strategies, and operational errors can all be traced to poor-quality data.

Why is data important in quality management? ›

No matter which industry, the role of data in quality management cannot be understated. It helps in decision-making, understanding patterns and evaluating the organisation's performance as well as areas of improvement.

Why is it important to use data in an organization? ›

Data will help you to improve quality of life for people you support: Improving quality is first and foremost among the reasons why organizations should be using data. By allowing you to measure and take action, an effective data system can enable your organization to improve the quality of people's lives.

How leaders can get better at using data to make decisions? ›

Essential Steps to Implement Data-Driven Decision Making
  1. Define Clear Goals and Metrics. Start by identifying the key goals and objectives that you want to achieve through data-driven decision making. ...
  2. Collect Relevant Data. ...
  3. Analyze the Data. ...
  4. Make Informed Decisions. ...
  5. Continuously Monitor and Refine.

Why is data so powerful? ›

Good data allows organizations to establish baselines, benchmarks, and goals to keep moving forward. Because data allows you to measure, you will be able to establish baselines, find benchmarks and set performance goals. A baseline is what a certain area looks like before a particular solution is implemented.

What is the main purpose of data? ›

It can tell us what is happening around us, or around the world, and how it might affect us. We can use the data to plan and evaluate. Researchers use data to understand why something occurs and to find solutions to problems.

What are five data values? ›

A summary consists of five values: the most extreme values in the data set (the maximum and minimum values), the lower and upper quartiles, and the median. These values are presented together and ordered from lowest to highest: minimum value, lower quartile (Q1), median value (Q2), upper quartile (Q3), maximum value.

What are the positive impacts of data? ›

The rich variety of data that enterprises generate contains valuable insights, and data analytics is the way to unlock them. Data analytics can help an organization with everything from personalizing a marketing pitch for an individual customer to identifying and mitigating risks to its business.

What are six benefits of using high quality data? ›

What Are the Benefits of Good Data Quality?
  • More Informed Decision-Making. ...
  • Better Audience Targeting. ...
  • More Effective Content and Marketing Campaigns. ...
  • Improved Relationships With Customers. ...
  • Easier Implementation of Data. ...
  • Competitive Advantage. ...
  • Increased Profitability.
Apr 30, 2019

Why is data important in quality improvement? ›

First and foremost, you collect data and plot it out over time to answer the second question in the model for improvement: How will you know that a change is an improvement? Without the data, you revert to having an opinion about whether change is causing any good effect on your service.

What is the goal of data quality? ›

Accurate and reliable data is fundamental for making informed decisions, reducing errors, and avoiding costly mistakes. Data quality tools help organizations identify and rectify data inaccuracies, ensuring that their data remains a valuable asset rather than a liability.

What are the benefits of improved data quality? ›

High data quality has multiple advantages. It saves money by reducing the expenses of fixing bad data and prevents costly errors and disruptions. It also improves the accuracy of analytics, leading to better business decisions that boost sales, streamline operations, and deliver a competitive edge.

Why is it important for leaders to gather information? ›

Information Gathering and Relationship Building

Before a new leader is able to decide, initiate action or communicate intelligently, he/she needs good information quickly. It is vitally important to have information from different perspectives and different levels in an organization.

Why do managers need to understand data? ›

Data management helps minimize potential errors by establishing processes and policies for usage and building trust in the data being used to make decisions across your organization. With reliable, up-to-date data, companies can respond more efficiently to market changes and customer needs.

What is the importance of data in management? ›

Data management overview

Data is essential to how a business operates and functions. Businesses must make sense of data and find relevance in the noise that's created by diverse systems and technologies supporting today's highly connected global digital economies. In this regard, data takes centre stage.

How do you present data to leadership? ›

How to Present Research Insights to Executives with Ease
  1. Understand who your audience is (and what they want from the presentation) ...
  2. Back up your research with numbers, videos or powerful resources. ...
  3. Prepare yourself for pushback. ...
  4. Pitch the story at the right level. ...
  5. Tell a story that connects with your audience.

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