Principled Innovation LLC

The use of data has its limits

October 15th, 2006

ASAE & The Center’s recently-released 7 Measures of Success report, argues that one of the attributes of so-called “remarkable” associations is the use of data to drive strategy. According to the report, these highly-successful organizations:

…continuously track member needs and issues as well as the wider environment, then collectively analyze the data to reach a shared understanding through asking, “What do we now know? What are we going to do about it?” These associations then incorporate the findings into their strategic and operational planning.

I don’t know anybody who would disagree with the assertion that the appropriate use of data can help facilitate decision-making in some areas. Indeed, the agreement on this point is so widespread, that it doesn’t really resonate as an indicator of an association being “remarkable.” Rather, I would describe the intelligent use of data as simply one more thing that all well-managed organizations do as a matter of course.

It seems to me that truly remarkable associations will also recognize the limitations of data, especially when trying to identify ways to create new value for members, customers and other stakeholders. Consider the following observations from innovation expert Clayton Christensen, author of The Innovator’s Dilemma:

The root of the problem is that concrete data only exist about the past. Companies that rely on data to make decisions, then, consign themselves to making decisions based on what has happened, not what will happen.

In stable environments where the future resembles the past, making decisions on past data can work just fine. In changing environments where the future is materially different from the past, it can be disastrous.

Last week, I spoke to a group of staff and volunteer association leaders from around the country, and I asked them a question very similiar to the point made by Christensen above: how many of you believe your organizations operate in a stable and predictable environment? No one raised his or her hand, a response (or lack thereof) that I actually take as an extremely encouraging sign. Association leaders who continue to believe that decisions about the future can be made by relying on the past will fail at the challenge of 21st century stewardship. It is important to respect the past, of course, but it is a far lower priority today than the need to constantly adapt to the challenges of the present while acting confidently to create the future through innovation.

So, my advice to association leaders is to situate the data used in decision-making in their proper context. While data can be a useful lens for viewing and assessing past performance, they do not help us develop a perspective on where our organizations are headed. Remarkable organizations and their leaders understand you need both insight and foresight to be truly successful.

Entry Filed under: Principled Innovation Blog, What's New?, Social Media, Innovation, Associations, Extreme Makeover, The Association Innovator, We Have Always Done It That Way