The move towards digital has recently been turbo-charged thanks to impacts like COVID and the democratization of generative AI. Data fuels digital, yet it can only bring desired benefits if people know how to use it. In digital organizations, data literacy is personal and engaging. Data literacy is an essential skill that companies of all sizes and levels of digital maturity1 should invest in. To remain competitive, data literacy initiatives should increase skillsets and fuel interest in the topic. Yet often, this isn’t working, and one big reason is the words used to describe what exactly data literacy is.
What exactly is data literacy?
The most common definition used is “Data literacy is the ability to read, understand, create, and communicate data as information.” 2 While this definition is factually correct, it isn’t ideal because it doesn’t arouse any emotion in the reader. It is neutral and informative but will not inspire most people to want to know more. An alternative definition by Angelika Klidas and Kevin Hanegan is much better. Theirs is “Data literacy is a combination of skills and mindsets that allows individuals to find insights and meaning within their data to enable effective, efficient data-informed decision-making.” 3 It exudes positivity, clarifying what benefits a person will have by investing time in the subject. Also, it clearly states expectations and tangible outcomes.
This move from a neutral definition of data literacy to an engaging one is crucial. It will help staff see the benefit and engage in this vital subject. They understand they are developing new skills, changing their mindset, and making effective data-driven decisions. This, in turn, will support digital initiatives in achieving desired results.
How is data literacy personal in a company?
There is no one-stop shop when considering the data literacy needs of companies. Skills needed will vary depending on the industry, the current level of digital maturity, and specific ongoing digital initiatives. That said, some general mindsets and skills are universal for companies with a digital way of working. A few examples are:
- Desire to identify trends and learn from them
- Willingness to put every step of every process in question
- Aspiration to improve everyone over time while taking into account the different stages of digital maturity
- The mentality of digging deep into questions and finding underlying root causes
- Ability to process data and present it in a high-quality, understandable way
- Capability to combine data with personal experience to get powerful insights
Taken together, this creates an organization with a digital mindset. People are engaged and understand the benefit of data not only for themselves but also for the organization. This is why talking about data literacy in a positive, engaging language like that from Angelika and Kevin is essential. It helps people be more engaged, because they see the value personally.
What is the future of data literacy for companies?
Data literacy needs to evolve with digital advances, which are developing at a neck-breaking pace. Specifics depend on how far a company has transformed the culture towards digital and what industry trends are. Yet, three elements are universally essential.
Identification and support of personally engaged data leaders
As I pointed out in this post, Know your data leaders! Transformation is impossible without them. (corvaglia.me) digital transformation is impossible without data leaders. These leaders will often be the differentiating factor ensuring the widespread adoption of new working methods. They already have the data literacy mindset and a robust skill set to help lead others along the way. But, they will always need support to help them be recognized as mentors by others in the organization.
Maintenance of a digital culture of questioning everything
The most critical mindset in an organization with a digital culture is that no process or established idea is immune to change. This is very important, as transformation doesn’t mean automating existing processes. It means completely rethinking methods based on the new technical possibilities to multiply benefits. Without this, there is a risk that investments in digital will be “so-so technologies ” 4 that automate without bringing any additional value.
Staying laser-focused on people
No matter which digital advances are made in an organization, people will always make or break its success. They must be willing to make the extra effort to ensure the data is quality. Data-driven decision-making is about looking into data and finding valuable information added to the report from personal experience. Insights cannot come from data alone, so people must be treated as an integral part of any digital solution.
How to get staff engaged in a digital organization
As I mentioned at the beginning, data literacy is personal and engaging in digital organizations. Each organization’s data literacy needs will differ according to the specifics of its industry, people, and digital initiatives. Regardless, the first step is to find the data leaders. They provide a group of people that can support the change process on all levels of the organization. In addition, it is crucial to put a culture in place where all processes can be openly scrutinized to see how they could be better in a digital context. Finally, no matter the organization’s specific situation, it is vital to remember that people are their first asset, even in digital. Digital literacy initiatives should be planned with these three aspects in mind.
Another aspect of preparing staff for data literacy is the Digital Readiness Assessment, which you can read more about here: Analyze your digital readiness and discover its power – Leaders of Digital Change (leaders-of-digital-change.com)
1 Digital Leadership defines digital maturity as “an organization’s ability to respond to the developments quickly and shifting technology trends. More here: https://en.wikipedia.org/wiki/Data_literacy
2 Source: https://en.wikipedia.org/wiki/Data_literacy
3 Source: book “Data Literacy in Practice” by Angelika Klidas and Kevin Hanegan, intro page to Part 1
4 Source: https://mitsloan.mit.edu/ideas-made-to-matter/lure-so-so-technology-and-how-to-avoid-it