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Building a Data Culture Depends on Building a Culture

For organizations that are committed to leveraging data and AI in truly transformative ways, experts nearly universally agree they must integrate that notion tightly into their corporate culture. Businesses that try to graft a data-driven mindset onto an unsteady foundation, however, will likely not be as successful as those who have established a winning culture in general.

In his 2018 bestselling book The Culture Code: The Secrets of Highly Successful Groups, author Daniel Coyle examined some of the most successful organizations in the world, looking for the common characteristics that made them that way. His interviews with members of organizations as diverse as animation house Pixar, the four-time NBA Champion San Antonio Spurs, internet retailer Zappos, the U.S. Navy Seals and others surfaced similar things each group did that contributed to team cultures that drove success.

While Coyle didn’t target the establishment of data-driven cultures, the pathways he identified to establishing winning cultures in general can address some of the problems organizations face as they journey toward digital transformation.

Alistair Croll, data analytics expert, author and conference chair of Data Universe, outlined in the Data Universe 2025 Manifesto some of the challenges organizations face as they try to establish data-driven cultures so they can make better decisions. The obstacles he says prevent action—hidden motivations, groupthink, social death, and coordination problems that result in a lack of trust—are handled far more easily if the people in a group exhibit the characteristics Coyle says signify a strong culture.

According to Coyle, the people responsible for a winning organization—especially the leaders—either naturally have or develop three skills when dealing with their coworkers or staff: they are adept at making people feel safe, they show vulnerability, and they are able to instill a sense of purpose. Each of these skills, when applied to relationships within an organization or team, engenders a high degree of trust among the individuals who comprise that team.

When thinking about the obstacles that hinder action and the formation of a data-driven culture set forth by Croll in the Data Universe Manifesto, it becomes apparent how groups with a strong general culture can overcome them more handily.

Building Safety

When people feel safe, Coyle says, they trust in their worth and place in the organization. As a result, they invest more energy in exchanges with colleagues, they value individuals and their ideas, they tell each other the truth, they take more risks and they are oriented toward longer, fruitful relationships and collaborations.

Croll says different motivations—often hidden—are one of the barriers to action in data-driven environments.

“Someone who’s afraid of losing their job wants safety and predictability, while someone who’s exhausted just wants the meeting to end, which affects how they interpret information,” he says. “We’re often in unspoken, even unconscious, competition with our colleagues, each of whom have their own goals and needs. As a result, even a team that starts with the same data can reach different conclusions, and act in very different ways.”

A team in which individuals feel safe is one where people are less likely to hide what they think and less likely to feel competitive with each other.

Showing vulnerability

Coyle argues that when individuals within a group openly share their weaknesses, fears, and mistakes, it not only builds trust but also creates a learning culture that thrives on continuous improvement.

An environment where fear of social death trumps a willingness to acknowledge mistakes and learn from them is one that will not perform optimally.

“If you never have that vulnerable moment,” Coyle writes, “then people will try to cover up their weaknesses, and every little micro task becomes a place where insecurities manifest themselves.”

This is especially important for those in leadership roles who have committed to building a data-driven organization.

According to the Harvard Business Review, the top driver of data-centric culture is a senior leadership team that sets an expectation that all decisions must be anchored in data, and that they lead through example.

High expectations drive high performance, Coyle notes, but leaders who have not built trust by showing vulnerability, knowing they don’t have the answer to every question, and gathering meaningful input from their reports cannot hope to get the buy-in that requires the entire organization to reach for challenging goals.

Instilling purpose

Successful groups devote a surprising amount of time to telling their own story, reminding each other, precisely, what they stand for, Coyle says. Purpose can serve as a north star that guides decision-making, aligns individual efforts, and galvanizes the group's collective energy. High-purpose environments are filled with small, vivid signals to create a link between the present moment and a future ideal.

The Data Leadership Collective agrees. In a recent article on how organizations can more readily embrace data culture, the DLC advises businesses to use examples from everyday life to foster inspiration and purpose.

“As you begin to understand how to build a data culture, raise examples from daily life to show how relevant data has become. If you interact with a Fitbit or another brand of sports watch, you’ve already achieved a certain level of data literacy. If you’ve spent a few moments reading a chart showing Covid rates, you are interpreting data.”

And keep raising those examples. Successful groups do not use subtlety when communicating their purpose, according to Coyle. They do it boldly and often. Statements of priorities were painted on walls, stamped on emails, incanted in speeches, dropped into conversation, and repeated over and over until they became part of the oxygen.

Foundation of a foundation

Building a data-driven culture in an organization is inextricably linked to the foundational elements of a strong corporate culture that already promotes trust, accountability and risk-taking. By prioritizing safety, vulnerability, and purpose, organizations can more effectively navigate challenges that inhibit data-driven decision making.

As leaders embrace these practices and actively model them, they not only enhance decision-making processes but also create an environment where data-driven insights can flourish. Team members can require their thinking from “protect my status” and “don’t do anything stupid” to “I want to do everything I can to help my team succeed.”

By aligning these elements, organizations position themselves not just for digital transformation, but for sustained success in an increasingly data-driven world.

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