The CEO's Guide to Data-Driven Decision Making
Narinder Kumar, Co-Founder & CEO, TO THE NEW, 0
In today’s business world, data is no longer a back-office function; it is the currency of confident decision-making. Whether it’s an established enterprise navigating disruption or a startup scaling new markets, leaders are discovering that the real competitive edge lies in how well they translate data into their business decisions.
As per Gartner, 79 percent of corporate strategy leaders believe analytics and AI will be critical to their success within the next two years. And while the majority of companies are attempting to capture value from data and AI, only eight percent have reached maturity, according to BCG, and those few are pulling away in both profitability and innovation.
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We all have seen how quickly consumer expectations evolve, how technology changes overnight, and global events test even the best-laid plans. What separates resilient companies from the rest is not luck, but the ability to use data as a compass: to validate instincts, to uncover opportunities, and to respond with agility when the unexpected happens.
The good news? With the right intent, culture, and leadership, any organization can harness data to unlock growth, resilience, and innovation.
1. Start With a Clear Purpose
Data by itself is noise, and it means nothing unless it connects to clear business goals. Leaders need to know what results matter most to the organization in the next two to three years, whether it is growing into new markets, improving customer experience, or increasing efficiency. Once the goals are set, the right measures can be chosen to check progress. Without this clarity, “improve customer experience” is just an aspiration.
Reports suggest that companies using data as a strategic asset perform far better in profits and innovation than others, showing that clear goals combined with the right data are a big advantage.
Research confirms the link: companies in the top third of data maturity are ~five percent more productive and ~six percent more profitable than their peers. Goals plus discipline unlock advantage.
2. Build a Culture of Curiosity
The culture built around data is also equally important. We need to understand that while dashboards and algorithms are crucial for insights, they don’t make decisions; people do. A good CEO builds a culture where employees trust data, ask uncomfortable questions, aren’t afraid to challenge assumptions, and support decisions with facts.
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When employees see data as a helpful tool instead of something scary, they start owning their decisions. I recall a meeting where a junior analyst hesitated to point out anomalies in revenue forecasts because “the VP already signed off.” We had to deliberately reshape norms, train on data literacy, reward those who spoke up, and treat mistakes as learning opportunities.
Even today, a survey by Pecan and VentureBeat shows that 84 percent of marketing leaders use predictive analytics, yet many still struggle with day-to-day decisions because data remains siloed, slow, or mistrusted. Culture determines whether data becomes a lever for change or a report no one reads.
3. Invest in Infrastructure and Governance
Early in our journey, we discovered that customer data, operational metrics, and financial reports were stored in different formats, with different definitions, and often riddled with errors. Integrating them was painful, but it revealed blind spots we had been flying with for years.
Decisions lose credibility if the data is incorrect, confusing, or stored separately. Strong policies
ensure that data is accurate, timely, and gathered properly. Combining data from different teams, such as customer feedback and operational performance, prevents blind spots and provides a complete view, bringing a new perspective. Companies with good governance and smooth systems are better at getting real benefits from data.
Data is only as valuable as its accuracy and integrity. CEOs must insist on governance frameworks, common definitions, clear ownership, regular audits, and ensure data is timely, secure, and privacy-compliant. With regulations like GDPR and India’s Digital Personal Data Protection Act, poor governance is not just inefficient; it is a legal and reputational hazard.
4. Start Small, Prove Value
Initially, large changes can feel overwhelming. The key is to begin with a few high-impact use cases. For us, predicting which customers were most likely to churn in the next 90 days allowed us to design targeted retention campaigns.
Recent global crises show that companies that used data and analytics were better able to respond to shocks and keep growing. Globally, predictive analytics is projected to surpass $22 billion in market size by 2025. But most companies struggle to scale because they lack momentum. CEOs must celebrate early wins, make them visible, and reinvest the returns.
5. Democratize Access to Insights
Making data available to everyone is another key step. Data locked in specialist teams limits its impact. Self-service dashboards and AI-driven tools enable frontline managers to act in real time. When everyone works from the same, trusted source of truth, decisions accelerate and accountability deepens.
The CEO’s role here is twofold: ensure accessibility while maintaining guardrails on privacy and security. Transparency breeds responsibility; secrecy breeds bottlenecks.
6. Move From Descriptive to Predictive and Prescriptive
Looking backward is useful; looking forward is transformational. Machine learning models now forecast demand shifts, optimize pricing, and detect risk patterns far earlier than human intuition alone. But algorithms are not infallible.
I remind my teams that data augments judgment, not replaces it. Ethical oversight, human review, and transparency must be embedded from day one. The skill to adapt quickly and improve with every step turns data into a lively asset rather than just a report.
7. Lead By Example
Ultimately, culture cascades from the top. In board meetings, I ask for the metrics, not just the narrative. A CEO who works actively with data by using metrics in meetings, questioning ideas with facts, and funding based on insights sends a strong message to the whole company.
When a leader visibly uses data to allocate budgets, approve strategies, and challenge ideas, the entire organization follows. Without this sponsorship, data initiatives remain “projects.” With it, they become the “DNA of the business.”
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8. Balance Data With Judgment
We must also acknowledge limits. Not every decision can or should be quantified. Values, ethics, and long-term vision often outweigh short-term financial gains. A merger decision, for example, may hinge as much on cultural fit as on EBITDA.
The best CEOs know when to let instinct guide them, but they also know when ignoring the data is reckless. In today’s volatile economy, it is not “data or instinct.” It is data and wisdom together.
Conclusion: The CEO’s Commitment
Data-driven decision-making is not about chasing dashboards; it is about building resilience, agility, and trust. For CEOs, the path is clear—define goals, build culture, invest in systems, democratize access, scale responsibly, and lead by example. The companies that will thrive are not those with the most data, but those that use it with purpose, integrity, and courage. As leaders, we owe it to our people, our customers, and our shareholders to make data not just a tool, but a competitive advantage that compounds over time.
Data is only as valuable as its accuracy and integrity. CEOs must insist on governance frameworks, common definitions, clear ownership, regular audits, and ensure data is timely, secure, and privacy-compliant. With regulations like GDPR and India’s Digital Personal Data Protection Act, poor governance is not just inefficient; it is a legal and reputational hazard.
As leaders, we owe it to our people, our customers, and our shareholders to make data not just a tool, but a competitive advantage that compounds over time.
4. Start Small, Prove Value
Initially, large changes can feel overwhelming. The key is to begin with a few high-impact use cases. For us, predicting which customers were most likely to churn in the next 90 days allowed us to design targeted retention campaigns.
Recent global crises show that companies that used data and analytics were better able to respond to shocks and keep growing. Globally, predictive analytics is projected to surpass $22 billion in market size by 2025. But most companies struggle to scale because they lack momentum. CEOs must celebrate early wins, make them visible, and reinvest the returns.
5. Democratize Access to Insights
Making data available to everyone is another key step. Data locked in specialist teams limits its impact. Self-service dashboards and AI-driven tools enable frontline managers to act in real time. When everyone works from the same, trusted source of truth, decisions accelerate and accountability deepens.
The CEO’s role here is twofold: ensure accessibility while maintaining guardrails on privacy and security. Transparency breeds responsibility; secrecy breeds bottlenecks.
6. Move From Descriptive to Predictive and Prescriptive
Looking backward is useful; looking forward is transformational. Machine learning models now forecast demand shifts, optimize pricing, and detect risk patterns far earlier than human intuition alone. But algorithms are not infallible.
I remind my teams that data augments judgment, not replaces it. Ethical oversight, human review, and transparency must be embedded from day one. The skill to adapt quickly and improve with every step turns data into a lively asset rather than just a report.
7. Lead By Example
Ultimately, culture cascades from the top. In board meetings, I ask for the metrics, not just the narrative. A CEO who works actively with data by using metrics in meetings, questioning ideas with facts, and funding based on insights sends a strong message to the whole company.
When a leader visibly uses data to allocate budgets, approve strategies, and challenge ideas, the entire organization follows. Without this sponsorship, data initiatives remain “projects.” With it, they become the “DNA of the business.”
Also Read: Industry, Academia and Government Synergy Disentangling Societal Challenges
8. Balance Data With Judgment
We must also acknowledge limits. Not every decision can or should be quantified. Values, ethics, and long-term vision often outweigh short-term financial gains. A merger decision, for example, may hinge as much on cultural fit as on EBITDA.
The best CEOs know when to let instinct guide them, but they also know when ignoring the data is reckless. In today’s volatile economy, it is not “data or instinct.” It is data and wisdom together.
Conclusion: The CEO’s Commitment
Data-driven decision-making is not about chasing dashboards; it is about building resilience, agility, and trust. For CEOs, the path is clear—define goals, build culture, invest in systems, democratize access, scale responsibly, and lead by example. The companies that will thrive are not those with the most data, but those that use it with purpose, integrity, and courage. As leaders, we owe it to our people, our customers, and our shareholders to make data not just a tool, but a competitive advantage that compounds over time.