What does "data-driven decision-making" refer to?

Data-driven decision-making refers to the practice of using data analysis to guide decisions rather than relying on personal experiences, gut feelings, or team consensus. This approach emphasizes the importance of using quantifiable evidence to inform choices, ensuring that these decisions are grounded in objective information. The analysis of relevant data allows organizations or individuals to identify patterns, assess performance, and forecast potential outcomes, leading to more informed and effective choices.

Using data in this way can improve accuracy and accountability in decision-making processes. It allows decision-makers to reduce biases and assumptions that can often lead to suboptimal outcomes. By focusing on empirical evidence derived from data, organizations can make strategic choices that are more likely to lead to success and can adapt more quickly to changes in their environment.