By Chris Probert, Partner and Data Practice Lead, and Zaheer Kaled, Principal Consultant, at Capco

Data literacy has become a fundamental imperative for organisations, determining their ability to read, analyse, utilise and communicate data. A data-literate organisation is critical to minimise new risks that arise from data not being correctly handled, to contain costs that arise from the changing technology landscape and to grow new data driven avenues for business.

As the volume, velocity, variety, and veracity of data continue to increase, organisations will naturally produce a vast amount of data, and data literate employees will be required to contribute more to their roles and help businesses to sharpen their competitive edge.

Data literacy is accordingly crucial, as it not only has the ability to transform an organisation, but also builds loyalty with workforce empowered by the investment in their professional development. However, a lack of data literacy skills at all levels means that, on average, companies make only 48 percent of decisions based on quantitative information and analysis – leaving significant room for improvement for organisations to become truly insights-driven.

Having evaluated the journeys that firms need to take, the best practices they should adopt when looking to enhance their data literacy capabilities, and how they can minimise the new risks that arise when data is not correctly handled, there are five clear takeaways.

1. The meaning and importance of data literacy: breaking down data literacy into two key dimensions – as an organisation and through its people. These dimensions complement one another and empower firms to ask the right questions, build knowledge, make effective decisions, and most importantly, cultivate a data capability among individuals. The organisation needs to constantly address how best to utilise data to inform or enhance decisions, processes and the way it earns revenue and brings value to its customers.
2. How to understand your organisation’s current state of data literacy: being data literate does not mean everyone learning to code, however everyone needs to be data literate. Companies must identify the different personas and roles in their organisation to design and tailor effective training programmes for all that will foster greater learning across the diversity of their workforce.
3. What the journey to data literacy looks like: as training is completed across the organisation, data literacy and fluency can be a social utility, enabling positive socioeconomic change. As an organisation’s data literacy initiatives progress and improve, they can help disrupt established learning platforms and institutions to become a source of revenue and innovation.
4. Key cultural factors and risks surrounding data literacy: Augmenting data literacy initiatives with structured post-training support will help your organisation realise the benefits from it for longer. Culture and accountability can be integrated to enable the growth of data literacy, with learning milestones linked to performance objectives and performance frameworks significant accelerators. In addition, identifying and recognising potential risks to deployed initiatives is essential to mitigate them.
5. Data training programmes: an organisation’s journey to improve data literacy should be based on deep expertise and include global, enterprise-level data-training programmes with classroom and online training modules, and immersion events. A range of post-training ongoing support measures, such as ‘clinics’ and working groups, keeps the newfound knowledge fresh and increases the likelihood of a real change in behaviours and decision making.

The ability to comprehend and communicate a common data language is a core necessary skill for organisations. Data literacy has accordingly become a key component for organisations – and should not be considered as the remit of just one team, but the responsibility of an organisation of data literate people.

The best organisations have tailored their learning and development to reflect and accommodate the diverse nature of their workforce. In order to achieving long lasting data literacy in an organisation, it is not just about having best-in-class learning and development initiatives. It is important to identify risks early and mitigate, and most importantly use culture as a mechanism to make it stick.