Businesses are making difficult decisions about costs, including staffing, as they prepare for economic uncertainty. It’s more important than ever for professionals to have a wide variety of in-demand skills that drive real results.
One such skill is data literacy: in today’s competitive job market, data skills are essential for managers who want to remain effective.
While some managers rely on their organization’s data analysts to turn raw data into actionable insights, the strongest leaders take initiative rather than allowing their projects to remain idle in the queue. There isn’t always time to wait for data to be gathered by one person, sent to another for analysis and then to another to develop action steps. Now, the world moves quickly, and managers need to as well.
What Is Data Literacy?
Data literacy, broadly, is the ability to meaningfully explore, understand and communicate using data. In business, strong data literacy means that individuals, teams and the organization as a whole can:
- Work with raw data (summarize, analyze, etc.)
- Understand what data points mean and how they connect
- Make decisions based on the data to support organizational goals
For example, an effective marketing manager should be using customer behavior data to identify underperforming campaigns. Analyzing this data enables them to adjust budgets to prioritize higher performing campaigns or to add resources that would make an impact, resulting in better ROI and more effective marketing.
Data literacy can encompass a variety of technical and interpersonal skills, from the most advanced data analysis to the basics of communicating the numbers in front of you.
Why Is Data Literacy Important?
In a data illiterate organization, decisions might be made based on inaccurate information or even no information at all. This can lead to devastating consequences, such as:
- Lost revenue
- Increased costs
- Wasteful resource use
- Biased thinking
- Unoriginal strategies
- Lower employee engagement levels
61% of business leaders are making snap decisions without reviewing data. Over half of these leaders are making the decisions because of difficulty accessing real-time insights.
With stronger data literacy skills, these leaders would be able to rapidly access, analyze and make decisions based on the data.
While not every decision needs to be made using a comprehensive data analysis, weaving data into your daily workflows so you can use it effectively is valuable at all levels in the workplace.
The Demand for Data Literacy Skills
Data literacy is an umbrella term that covers several job skills, but it encompasses any skill related to the collection, analysis and interpretation of data.
87% of business owners expect basic data skills from their employees at all levels. However, only 40% of employees have been trained on the data skills they’re expected to have.
These skills continue to grow in demand as organizations, especially their leaders and managers, need to ensure that every business decision has a strong positive impact. With a market that’s evolving at a breakneck speed, poor decision-making can lead to failed projects, lost revenue and even layoffs.
As managers make decisions that affect their direct reports, departments and entire organizations, they need to make those decisions based on relevant data. Simply making calls based on gut instinct isn’t a good enough reason for more choices anymore — you need to back up your decisions with statistics and facts.
What Are The Benefits of Data Literacy?
How Do Organizations Benefit?
- More efficiency: Managers can make data-driven decisions using their own data analysis, without waiting for other teams to do it for them.
- Improved operations: Middle managers with these skills don’t need as much oversight, freeing up the time of high-level leaders.
- Better communication: Teams can communicate how their decisions led to specific business results using detailed data instead of general before-and-after information.
- Cost savings: If more managers know how to use data effectively, organizations can find cost savings everywhere.
- Higher organizational value: Organizations with strong corporate data literacy have up to 5% higher enterprise value (a ~$500 million difference).
How Does an Individual Benefit?
- More competitive in the job market: An additional 30% of the workforce is expected to use data regularly in 2025.
- Better decision-making: Managers with data skills can make decisions that drive results for the business.
- Stronger communication: Managers can use data to ensure that top-level leaders and team members are informed about the status and methodology of projects.
- Less risks: By analyzing data early and thoroughly, managers can recognize potential issues with their approach and course correct as necessary.
- 94% of people using data in their job agree that data helps them do their job more effectively.
How Does Data Literacy Help Managers Do Their Job?
Managers are expected to have skills that allow them to:
- Make decisions that lead to positive business outcomes
- Ensure that team members are excelling
- Communicate progress and results with leadership and other departments
Why be the manager that infuses data into employee workflows?
72% of workers say that having access to data helps them be more productive, and 30% of them say that data is the more important factor in their productivity.
Your employees need data to be effective, and with data literacy skills, you can support them better.
How Can You Improve Data Literacy?
Whether you are already proficient in data analysis or find it challenging to access the correct data, here are some ways that you can improve your data literacy skills:
Data Literacy Skills & How To Develop Them
Data literacy involves an array of technical and nontechnical skills.
| Skill | How To Develop It |
|---|---|
| Technical Skills | |
| Data visualization | Try new methods (charts, graphs, maps, etc.) to see what works best, consider visual correlations, use software that helps you create better visualizations |
| Data management | Evaluate different tools that can automate data cleaning and storage |
| Programming | Python, R and SQL are great for data analysis. Consider taking courses in these areas. |
| Interpreting AI outputs | Short courses in AI or workplace training programs can help professionals better understand why AI returns certain recommendations and results. |
| Non-Technical Skills | |
| Critical thinking | Use logic to consider different problems, question your “first thought” about how to solve a problem, diversify your information streams |
| Research | Learn how to evaluate the validity of sources, find ways to narrow searching, discover how to spot bias |
| Communication | Practice active listening and public speaking; ask peers for feedback; try a new communication style |
Source: Tableau
How Does a Master’s in Management Enhance Data Literacy Skills?
Earning an online Master of Science in Management degree can jump-start your management career by providing advanced skills in a variety of areas, including data literacy. As an MS in Management student, you’ll take courses in data-driven decision-making and data analysis, such as Decision Making and Data Analysis.
Prepare to Lead With GW’s MS in Management
Advance your career with the GW School of Business’s Master of Science in Management, available online or in-person. Our expert-led blend of live discussion, real-world case studies and multimedia learning will help you develop the strategic thinking skills and global perspective needed for leadership.
The MS in Management curriculum will also cover cutting-edge data tools and valuable strategy concepts.
We believe in supporting our students through their academic journeys: every student accepted into our online graduate programs will receive an automatic tuition scholarship.
Learn more by requesting a brochure, or start your application today!
Since 1928, GW School of Business students have leveraged our global presence to pursue practical, insightful expertise in the world of business from an enviable vantage point. One of the most diverse cities in the United States, D.C. is home to leading organizations in the health care, hospitality, media, government, defense and technology sectors. Our faculty are thought leaders and educators in these areas and more, and they’re ready to provide you with the business and management expertise you need to succeed.