Why Data Is Important


In today’s competitive environment only a few entities are accumulating most of the success as well as wealth. To seek improvement you must make the best use of your available resources and data might be your most valuable resource. 

Why Data is important

Improve People’s Lives

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

Make Informed Decisions

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

Stop Molehills From Turning Into Mountains

Data allows you to monitor the health of important systems in your organization: By utilizing it 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.

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.

Find Solutions To Problems

Data allows organizations to more effectively determine the cause of problems and 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.

Back Up Your Arguments

Data is a key component to systems advocacy. Utilizing it 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.

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 information.

Know What You Are Doing Well

Data allows you to replicate areas of strength across your organization. Analyzing it 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.

Keep Track Of It All

Good data allows organizations to establish baselines, benchmarks, and goals to keep moving forward. Because it 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.

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 it 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.”

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 information.

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