Data driven culture in startups (2013 report)

A global survey on the
state of data driven
culture within startups

Contents

SECTION ONE

About Geckoboard 1
SECTION TWO

About Econsultancy 2
SECTION THREE

Foreword 3
SECTION FOUR

Executive Summary 4
SECTION FIVE

Methodology 7
Respondent Profiles 7

SECTION SIX

Findings 9
Data Driven Culture 9
Data Collection 10
Data Communication 15
Decision Making 19
Metrics 19
Optimisation 26
Culture 27

SECTION ONE

About Geckoboard

Geckoboard is a hosted status board able to better assess that information — with
that collects business information from dashboards being the mainstay for how it’s
many online services and customers’ own presented and consumed.
data sources, summarises it to distil the
key messages and displays it in a way 90% of customers have reported
that is easy to understand and interpret. improving their decision-making thanks to
Businesses use status boards to pull Geckoboard.
important information locked up in disparate Since launching in February 2011,
services together into one place to give a Geckoboard has picked up some 2,500
real-time status on the health of all aspects customers, including Atlassian, Groupon,
of a business. Gdgt, SecondMarket and Stack Exchange.

Geckoboard has called itself the “Chartbeat Stop spending time checking services and
for everything else” — in reference to the start monitoring your business in real-time.
tool used to monitor traffic and other metrics All your information available all the time, at
on websites. Geckoboard’s rise speaks a glance. In 30 days, you won’t remember
of a growing trend among businesses to how your business ran without it. Get a free
consolidate ever-growing lists of diagnostics trial here.
and information into simpler views to be

1

SECTION TWO

About Econsultancy

Econsultancy is a global independent decisions, build business cases, find the
community-based publisher, focused best suppliers, accelerate their careers and
on best practice digital marketing and lead the way in best practice and innovation.
ecommerce, and used by over 400,000
internet professionals every month. Econsultancy has offices in London, New
York, Singapore and Sydney,and we are a
Our hub has 185,000+ subscribers leading provider of digital marketing training
worldwide from clients, agencies and and consultancy. We trained over 5,000
suppliers alike with over 90% subscriber marketers and ran over 200 public training
retention rate. We help our subscribers build courses in 2012.
their internal capabilities via a combination
of research reports and how-to guides, Join Econsultancy today to learn what’s
training and development, consultancy, happening in digital marketing – and what
face-to-face conferences, forums and works.
professional networking.
Call us to find out more on +44 (0)20 7269
For the last 10 years, our resources have 1450 (London) or +1 212 971 0630 (New York).
helped subscribers learn, make better You can also contact us online.

2

SECTION THREE

Foreword

Geckoboard is pleased to present the data, how metrics are being chosen,
results of the first Global Report on Data how resources are being assigned, the
Driven Culture Within Startups, which was importance of data visibility and the most
designed to offer insights on how startups popular tools for data communication.
are dealing with an ever growing influx of
data and the key challenges faced when The report reveals that businesses are,
building organisations that embrace data as in general, actively looking to improve
much as intuition. their efforts towards building a data driven
culture. So far, most of the efforts have been
Data driven decision-making has been made in data gathering and analytics, with
fuelled by terms like ‘Lean Startup’ and very little progress in data communication
‘Lean Analytics’. Eric Ries coined the term and mechanisms to ensure that data is acted
‘lean startup’ in 2008 and since then, it has upon. Surprisingly, most respondents do
grown in popularity among entrepreneurs. not feel confident about their KPIs and their
The term has now become a movement that current challenge is to understand what the
has brought innovative thinking around how key drivers of the business are, to ensure
to design, build and develop sustainable that they build the right context for data
businesses based on customer feedback. analysis.

As the lean movement evolves, the We hope that you find the results of this
emphasis on data driven decision-making survey to be informative, and thank you
becomes more relevant. This report offers again to those who participated. We look
an overview on how startups are using forward to your participation in the future.

3

SECTION FOUR

Executive Summary

This report explores the general attitude of startups towards metrics and data communication.

It offers an overview on:

1 How startups are gathering, analysing and communicating data.

2 How much time and resources are spent on analytics.

3 What challenges are involved in building a data driven culture and monitoring the
right metrics.

4 Data visibility and its impact on decision-making.

This report is based on a global survey of 368 startups carried out by Geckoboard and
Econsultancy.

We would like to thank all the organisations that took part in the survey and those who
contributed with insights, analysis and valuable comments.

4

SECTION FOUR: EXECUTIVE SUMMARY

The findings of this research can be summarised as follows:

The vast majority of respondents Metrics democracy. In more cases than
identified themselves as data driven not, respondents who choose metrics in a
businesses; only 5% of respondents collaborative manner felt more confident
stated that data is not a priority within their about their metrics in comparison to those
organisation. who do not involve the team.

Intuition is still highly valued in decision- Data vs. Data communication: 44% of
making. Despite the rapid adoption startups spend substantially more on data
and evangelisation of the lean startup gathering than on data communication,
methodology (see Section 3) and the with 34% of respondents spending equally
constant emphasis on data collection and on both. This highlights the importance of
measurement within the startup community, developing mechanisms to guarantee that
it is surprising to find that intuition and data is collected with a purpose and that
experience are still heavy components of key insights can be derived from it. The
the decision-making process. Only 27% improvement of data communication can
of respondents believe that data is crucial lead to a better understanding of what is
when it comes to decision-making. important to measure and what is not.

There is a marked lack of confidence
around data and metrics. Almost half of
the respondents (49%) do not feel confident
about the metrics they are currently
“If you can't explain
monitoring. Based on analysis of data it simply, you don't
gathered in this report, this group is also
less likely to have processes in place to understand it well
ensure that data is understood and acted
enough.”
upon.
ALBERT EINSTEIN

5

SECTION FOUR: EXECUTIVE SUMMARY

The survey also showed that real time data and dashboards are increasingly being
adopted by startups as a communication tool although traditional formats like Excel are still
the most popular.

Despite the investment on tracking, data gathering and analytics, 59% of respondents do
not have processes in place to make sure data is understood and acted upon.

6

SECTION FIVE

Methodology

This report is based on a global survey of Econsultancy also promoted the survey via
368 business professionals working in the social media. The incentive for taking part in
startup community, but also included larger the survey was a complimentary copy of the
businesses so that general attitudes towards report.
data management were represented. The
survey was live during January and February If you have any questions about the
2013. research and methodology, please email
Sofia Quintero at Geckoboard (sofia@
Geckoboard promoted the survey to its geckoboard.com).
customer data base and via social media.

5.1 RESPONDENT PROFILES

A total of 368 business professionals took the United Kingdom are also significantly
part in the survey. The greatest proportion represented.
of respondents work in the internet/software
industry (42%), though a range of other The following chart shows that the
industries are represented. survey respondents are typically senior
within their organisations, with over 70%
Respondent organisations are primarily classifying themselves as founders, CTOs,
based in North America, although Asia, Latin CEOs, directors, or presidents of their
America, Western Europe and specifically organisations.

7

FIGURE 1: WHAT IS YOUR POSITION IN THE ORGANISATION?

FOUNDER / CEO

FOUNDER / CTO

OTHER

DIRECTOR

DEVELOPER

MANAGER ANALYTICS

EXECUTIVE

MANAGER MARKETING

PRESIDENT

ADMIN / SUPPORT

0% 10% 20% 30% 40%

The aim of the survey was to look at the Figure 2 shows the size of the responding
attitude of startups towards data collection companies. More than 80% of responding
and analysis; therefore the survey was companies have less than 100 employees,
marketed towards respondents from reflecting the startup focus of the report.
companies with less than 20 employees.

FIGURE 2: WHAT IS THE SIZE OF YOUR ORGANISATION?

30
NUMBER OF RESPONDENTS

23

16

9

2
1-4 5-9 10-19 20-99 100- 500- 10,000+
499 9,999

NUMBER OF EMPLOYEES 8

SECTION SIX

Findings

6.1 DATA DRIVEN CULTURE

Definition: A ‘Data Driven Organisation’ is uses technology to communicate data
one that cultivates a culture where data is in a clear and approachable way. In this
valued as much as intuition and experience; kind of organisation, decision-making is a
where data is visible and accessible to collaborative process and metrics are set
everybody. A data driven organisation based on very specific business goals.

FIGURE 3: BASED ON THE DEFINITION ABOVE, WOULD YOU CONSIDER YOUR ORGANISATION TO BE
DATA DRIVEN?

Yes 26% - since the
very beginning we made
sure data was part of our
culture

No 7% - this is not a
priority in my
organisation; only
management make
decisions

Yes 44% - we have
made great improvement
and are still working on it

9

SECTION SIX: FINDINGS - DATA DRIVEN CULTURE

Figure 3 shows that the majority of this area. A total of 70% of respondents
respondents not only understand the consider their organisation to be data-
importance of building a data driven driven, with only 7% of respondents
culture, but are also proactively looking into believing that being data driven is not a
mechanisms that will allow them to improve priority.

6.2 DATA COLLECTION

As the industry moves forwards with new ever growing data points available to
technologies able to track data in very organisations, the illusion of having all the
granular and sophisticated ways, there data needed in order to make decisions
is also a need for simplification. With starts to blur with information overload.

FIGURE 4: TO YOUR BEST KNOWLEDGE, HOW MANY THIRD PARTY SERVICES OR SYSTEMS DOES
YOUR ORGANISATION CURRENTLY USE TO GATHER DATA?

60%
PERCENTAGE OF RESPONDENTS

45%

30%

15%

0%
1-4 4-9 10+ DON’T
KNOW

NUMBER OF SERVICES

10

SECTION SIX: FINDINGS - DATA COLLECTION

Nearly a fifth (18%) of respondents in the assessment of business performance.
survey said that they used more than 10 Google Analytics alone offers over 200
different services to gather data, revealing pre-defined dimensions and metrics to
the wealth of data that can be collected. The choose from and combine. Choosing the
list of potential metrics available to decision right metrics within the right context is one
makers represents a constant challenge of the most crucial tasks for data driven
when it comes to executing a focused organisations.

FIGURE 5: HOW MANY FULL TIME EMPLOYEES DOES YOUR COMPANY CURRENTLY HAVE WORKING ON
DATA GATHERING, ANALYSIS AND DISTRIBUTION ROLES?

60%

45%

30%

15%

0%

1-4 4-9 10+ NONE

NUMBER OF EMPLOYEES

77% of respondents have at least one full- and analysis.
time employee working on data gathering

11


Figure 6 shows the number of employees employees, however also reveals that a
working on data, against the size of surprisingly large proportion of respondents
the company. As expected, the larger have no employees working on data, even
organisations are more likely to have a in organisations with up to 100 employees.
higher number of data-dedicated

FIGURE 6: THE NUMBER OF EMPLOYEES FOCUSED ON DATA, CHARTED BY THE TOTAL NUMBER OF
EMPLOYEES IN THE ORGANISATION.

60%

45%

30%

15%

0%
1-4 5-9 10-19 20-99 100-499 500- 10,000
9,999

SIZE OF ORGANSIATION (EMPLOYEES)

BETWEEN 1-5 BETWEEN 5-10 10+ NONE

Based on respondents’ comments data of data-focused employees, with it being
collection and analysis is not always the part of the role of many, but the sole role
responsibility of a dedicated staff member, of none. It is evident that software is also
being a shared responsibility across multiple relied upon by many respondents to do
teams and with roles extended to include the data gathering and analysis, but many
data management. This could affect how organisations assign no specific person to
respondents were counting the number pull insights from this analysis. 12


RESPONDENT COMMENTS: ‘HOW MANY FULL-TIME EMPLOYEES DOES YOUR COMPANY CURRENTLY
HAVE WORKING ON DATA GATHERING, ANALYSIS AND DISTRIBUTION ROLES?

“I do product, and “There is no dedicated
“This is distributed
one other guy does staff – it is a shared
across the team.”
core-business metrics.” responsibility.”

“One person “We can’t afford a
“Support and Services
is delegated salary of £35k+ to
focus on customer
responsibility and analyse our data;
data and our software
accountability for this. many of us have
itself is geared
However, it is not a managed people and
towards data analysis
full-time equivalent roles which do this
and gathering.”
aspect.” kind of work. We have
extended our roles
to do this, as this will
drive decisions in the
company.”

“Right now I am the only person. I am using software
to try to do automatically, such as the integrations with
Sugar CRM and other apps to help do auto tracking.”

13


FIGURE 7: WHAT IS THE BALANCE BETWEEN RESOURCES SPENT IN GATHERING DATA (BIG DATA) AND
COMMUNICATING DATA (REAL TIME METRIC DASHBOARDS, REPORTS)?

44% - We spend
34% - We spend equally substantially more in data
on both gathering

22% - We spend
substantially more in data
communication

Data gathering rather than data 34% of respondents put equal emphasis in
communication seems to be the priority both processes. Data becomes irrelevant
among startups with 44% of respondents if organisations cannot make sense of it or
spending more on data gathering. Only communicate insights clearly throughout the
22% put more emphasis on how data is organisation.
communicated. It is surprising that only

14

6.3 DATA COMMUNICATION

FIGURE 8: WHAT IS THE MOST COMMON FORMAT FOR DATA COMMUNICATION IN YOUR
ORGANISATION?

6% - Other 32% - Dashboards or
real time display
technology
8% - Powerpoint
presentations

24% - Reports exported
directly from third party
systems and applications 30% - Excel
Spreadsheets

Excel spreadsheets and dashboards are to share data among teams are: Google
seen to be the preferred tools used to Docs, Trello and proprietary tools and
share data within organisations. Real-time dashboards.
technology has been rapidly gaining in
popularity among startups due to its ability Given the volume of metrics that can
to rapidly show data, which is vital in a be tracked and gathered, it is crucial
business as agile and changeable as a for startups to find appropriate tools to
startup. communicate that data and make sure it is
understood throughout the organisation,
Based on comments provided by and, vitally, that it is acted upon.
respondents, other tools and formats used

15

SECTION SIX: FINDINGS - DATA COMMUNICATION

FIGURE 9: ARE THERE ANY PROCESSES IN PLACE TO MAKE SURE THAT DATA IS UNDERSTOOD AND ACTED
UPON?

60%

45%

30%

15%

0%

YES NO

Respondents were asked if they had any that data is understood and actionable.
processes in place to make sure that data
is understood and acted upon; the majority Below are some examples of processes
answered no. It is surprising to find that even given by responding companies. Meetings
though 70% of the respondents consider and verbal discussions are popular to
their organisations to be data driven, the decipher data, with dashboards and KPIs
same organisations are also typically also used to prompt discussion and reviews.
currently lacking mechanisms to make sure

16


RESPONDENT COMMENTS: ‘ARE THERE ANY PROCESSES IN PLACE TO MAKE SURE THAT DATA IS UNDER-
STOOD AND ACTED UPON?’

“Analysts and managers “Bonuses based on key “Creation of a data
review reports.” metrics” warehouse”

“Trending service usage “Verbal report out, each
“Custom dashboard”
prompts management section is discussed for
review.” clarity”

“Tied directly to feature
releases, watching “We are looking at “Weekly meetings to
metrics move, metric- dashboards to make comment on metrics
driven goals, etc.” data accessible” (founders and investors);
benchmarking cross-
portfolio”

“We write blog posts. We set OKRs (objectives and key
results) that are basically hypotheses that require data
to prove them (or disprove them) within a set period of
time.”

17


Figure 9 shows a chart of the data in Figure It may be the case that these companies
8, combined with data from the question: analyse their data in a more fluid way, in
‘Would you consider your organisation to meetings and ad hoc by individuals, rather
be data driven?’ (Figure 3). It is interesting to than having stringent processes in place
see that 12% of respondents said that their for acting upon data. Due to the nature of a
organisations were data driven, and had startup, these processes may not have yet
been since the very beginning, but at the been put in place, but the case may be that
same time did not have any processes in in some companies a lot of data is being
place to make sure that data is understood collected, without much meaningful insight
and acted upon. being gained from it.

FIGURE 10: CROSS TABULATION ANALYSIS OF ‘WOULD YOU CONSIDER YOUR ORGANISATION TO BE
DATA DRIVEN?’ (FIGURE 3), AGAINST FIGURE 9: ‘ARE THERE ANY PROCESSES IN PLACE TO MAKE
SURE THAT DATA IS UNDERSTOOD AND ACTED UPON?’

Are there any processes in place to make sure that data is
understood and acted upon?

Yes No

No, but we are
mobilizing resources
and efforts to improve
8% 15%
in this area

No, this is not a priority
in my
Would you consider organization; only 1% 4%
management
your organisation to makes decisions
be data driven?
Yes, we have made
great improvements and 19% 27%
are still working on it

Yes, since the very
beginning we made
sure data was part of our
13% 12%
culture

18

6.4 DECISION MAKING - METRICS

FIGURE 11: IS YOUR ORGANISATION CONFIDENT THAT IT IS MEASURING THE RIGHT METRICS
AND KPIS?

60%

45%

30%

15%

0%

YES NO

Almost half of the respondents do not 61% of respondents said that the key
feel confident about the metrics they are challenge in choosing the right metrics
tracking. When viewed in the context of was in understanding the key drivers of
a startup culture, these results are not all the business. Uncertainty is at the core of
that surprising. Most of the respondent startups so being flexible to test and try
comments on this question are around the different approaches to measurement is
need to be flexible and open minded to more a survival practice than an option.
changes. It is part of the lean startup culture
to avoid making assumptions without having Comments from the survey respondents
a way to prove them. Being confident supported this theory, with many stating that
about the current metrics could be, to they were still evolving and that there was
some companies, like declaring that the always more data that they could look at.
organisation has stopped learning. Agility is a key requirement for startups, with
changing metrics being part of learning and
This is also reflected in Figure 11, where evolving for the benefit of the business.

19

SECTION SIX: FINDINGS - DECISION MAKING - METRICS

RESPONDANT COMMENTS: ‘IS YOUR ORGANISATION CONFIDENT THAT IT IS MEASURING THE RIGHT
METRICS AND KPIS?’

“We could always “You never can be sure “I’d say yes... but always
measure more!!” until enough data has learning new ones. So
arrived and fine-tuning is 75% confident.”
always needed.”

“At least confident that
we’re evolving in the
“Reasonably, there’s
right direction.” “Metrics are under always space for
continual review for improvements.”
relevance and validity.”

“We are in the early
stages - trying to “Working on switching
tackle one area of our “We’re still in our search from vanity metrics to
operations at a time.” mode.” pirate metrics.”

“Can’t ever be totally “Our KPIs are in “We’re doing our best
confident, we’re always significant flux as the as we remain agile.”
trying to improve our company is still in a
metrics” development phase.”

“We’re constantly
iterating, whilst
“We are confident that we have some good KPIs but expanding
are confident they can always be better. We evolve as geographically and in
we learn more.” scale, so it would be
hard to ever say ‘yes’.”


A cross tabulation analysis of the questions the group that is not confident that they are
‘Is your organisation confident that it is measuring the right metrics, also seem to
measuring the right metrics and KPIs?’ and be less likely to have processes in place
‘Are there any processes in place to make in ensure that data is understood and
sure that data is understood and acted acted upon. A third (33%) of respondents
upon?’ is shown below. There is a lack of answered ‘No’ to both questions.
confidence around data and metrics, and

FIGURE 12: CROSS TABULATION ANALYSIS OF FIGURE 9 AND FIGURE 11.

Are there any processes in place to make sure that data is
understood and acted upon?

Yes No
Is your organisation
confident that it is Yes 26% 26%
measuring the right
metrics and KPIs?
No 16% 33%

21


FIGURE 13: HOW DOES YOUR ORGANISATION DECIDE WHICH METRICS AND KPIS ARE IMPORTANT?

60%

45%

30%

15%

0%

IT IS A COLLABORATIVE NON-STRUCTURED, KPI’S
PROCESS. EVERYBODY CHOSEN BY DIFFERENT
CONTRIBUTES PEOPLE. CASE-TO-CASE

BASIS

TOP LEVEL MANAGEMENT ONLY SPECIFIC

MAKES THE DECISION DEPARTMENTS GET

INVOLVED

Just over half (51%) of respondents embrace seems to be an important characteristic
collaborative thinking around metrics. of data driven organisations, with 51% of
A quarter (25%) still depend on the top respondents deciding their metrics and
management level to define key metrics KPIs through a joined-up process. As seen
and 19% have a non-structured/informal in the comments provided in Figure 5,
approach to metrics management. The responsibility for data gathering and analysis
remaining 5% choose metrics in isolation, is often shared among several people in the
potentially by department. organisation, and it therefore makes sense
to choose metrics as a team and not in
A collaborative approach to metrics isolation.

22


FIGURE 14: CROSS TABULATION ANALYSIS OF ‘HOW DOES YOUR ORGANISATION DECIDE WHICH
METRICS AND KPIS ARE IMPORTANT?’ AGAINST FIGURE 11: ‘IS YOUR ORGANISATION CONFIDENT
THAT IT IS MEASURING THE RIGHT METRICS AND KPIS?’

Is your organisation confident that it is measuring the right
metrics and KPIs?

Yes No

Top-Level
management makes 11% 14%
the decision

It is a collaborative
How does your process. Everybody 31% 20%
organisation decide contributes.

which metrics and KPIs
are important?’ Only specific depart-
ments get involved in 2% 3%
measurement

It is non-structured, KPIs
are chosen by different
people in a case-by-
7% 12%
case basis

Figure 13 shows that respondents who only category in which more respondents
choose metrics in a collaborative manner answered that they were confident in their
feel more confident about their metrics in metrics (31%) than those that said they were
comparison to those who do not involve the not confident (20%).
team. ‘It is a collaborative process’ is the

23


FIGURE 15: WHAT WOULD YOU SAY IS THE TOP CHALLENGE IN CHOOSING THE RIGHT METRICS?
[RESPONDENTS COULD SELECT MORE THAN ONE OPTION]

UNDERSTANDING THE KEY
DRIVERS OF THE BUSINESS

HAVING THE RIGHT TRACKING
IN PLACE

DEFINING PRIORITIES AND
BUSINESS GOALS

HAVING THE RIGHT CONTEXT

LACK OF SKILLS AND RESOURCES

HAVING CONSENSUS WITHIN
THE ORGANIZATION

0% 20% 40% 60% 80%

The majority of respondents said that a key challenging to identify the key drivers of
challenge in choosing the right metrics to the business when, in some cases, the
measure was in understanding what the key business model has not been fully defined
drivers of the business are (61%), followed by or implemented. However, concentrating
having the right tracking in place (42%) and on one key metric can help to minimize
defining priorities and business goals (39%). ‘paralysis by analysis’. This is what the
authors of Lean analytics call ‘The One
The nature of startups implies that historic Metric That Matters’. They explain:
data is not always available, so it is

“The One Metric That Matters is the one number you’re completely focused on
above everything else for the stage you’re at. Looking at CLV (customer lifetime
value) isn’t meaningful when you’re validating a problem, but it might be the right
metric to focus on as you’re approaching product/market fit. It most certainly is not
a vanity metric!”

1 “Customer Lifetime Value (CLV) is a formula that helps a marketing manager arrive at the monetary value associated with long term
relationships with any given customer, revealing just how much a customer relationship is worth over a period of time” http://hbsp.
harvard.edu/multimedia/flashtools/cltv/index.html 24


Having the right context, skills and crucial as being clear on what the business
consensus seem to be important but not as direction is.

FIGURE 16: WOULD YOU SAY THAT YOUR ORGANISATION HAS MISSED BUSINESS OPPORTUNITIES IN
THE LAST 12 MONTHS AS A CONSEQUENCE OF NOT HAVING ENOUGH DATA VISIBILITY?

60%

45%

30%

15%

0%

YES MAYBE NO

A third (34%) of respondents believe that enough data visibility.
they have missed business opportunities as
a consequence of not having enough data There seems to be some inconsistency
visibility, and 47% answered ‘maybe’. in the perceived effectiveness of
those mechanisms, and it is clear that
It is interesting to note that respondents organisations see data collection as almost
who said that their organisations had unlimited, with many commenting that it
mechanisms to ensure data was acted is impossible to measure everything,
upon also said that they have, or may have, so missed business opportunities are
missed business opportunities in the last somewhat inevitable.
12 months as a consequence of not having

25

6.5: DECISION MAKING - OPTIMISATION

FIGURE 17: HOW OFTEN DOES YOUR ORGANISATION REVISE AND CHANGE ITS METRICS OR KPI FOCUS?

40%

30%

20%

10%

0%

WEEKLY MONTHLY 6 MONTHS YEARLY NEVER

Respondents were asked the frequency Only once everyone understands the
in which they change their metrics or KPIs key metrics, can they collectively work to
focus. 37% said every 6 months, and 27% optimise them. The frequency with which
said every month. For startups, the key this is done depends on the industry and
metrics for driving revenue, profitability and service provided by the organisation, but
productivity need to be established and revision of metrics and KPIs is important to
understood across the business. ensure a business is collecting the right data
and acting on it.

26

6.6: DECISION MAKING - CULTURE

FIGURE 18: ARE EMPLOYEES IN YOUR ORGANISATION ENCOURAGED TO BACK UP THEIR DECISION
MAKING WITH DATA?

60%

45%

30%

15%

0%

YES, THIS IS NO SOMETIMES

CRUCIAL

YES, BUT WE ALSO

BELIEVE IN INTUITION
AND EXPERIENCE ON

ITS OWN

When asked if employees are encouraged of the key mantras of the lean startup
to back up their decision making with data, methodology is to base all decisions
51% of respondents said that they also on metrics, assumptions and validation.
believe in experience and intuition when Feelings and intuition are not necessarily
it comes to decision-making. Just over a part of the equation. However, as startups
quarter of respondents (27%) said data is try to move fast and manage uncertainty,
crucial. some decisions are inevitably made based
on experience and the data availability and
The lean startup and lean analytics gut feelings. The challenge will always be in
community would strongly agree with establishing the right balance.
the latter quarter of respondents. One
27

SECTION SIX: FINDINGS - DECISION MAKING - CULTURE

FIGURE 19: WHAT IS THE BIGGEST CHALLENGE YOU HAVE FACED WHEN BUILDING A DATA DRIVEN
CULTURE?

LACK OF RESOURCES FOR THE RIGHT
DATA COMMUNICATION TOOLS

ATTITUDE: DATA NOT
CONSIDERED A PRIORITY

DATA OWNERSHIP. UNCLEAR WHO
SHOULD GATHER, ANALYSE AND REPORT

LACK OF RESOURCE TO
INVEST IN TRAINING

LACK OF CLARITY ABOUT WHAT DATA
CAN BE DISTRIBUTED OR NOT

INTERNAL POLITICS. PEOPLE
REFUSED TO SHARE INFORMATION

0% 10% 20% 30% 40%

The SaaS data communication industry in creating a data driven culture. Lack of clarity
fairly new and even though status boards was also a challenge; specifically in data
technology and real time solutions are ownership (18%) and data distribution issues
emerging rapidly, the benefits of data (10%).
visualization and visibility are still widely
unknown. In an industry where data is needed to
analyse performance and rapidly make
Respondents were asked to select the changes to remain agile, having the
biggest challenges they have faced when resources to invest in data communication
building a data driven culture. Resources tools is important, as without the data,
were a key issue; 37% of respondents said the drivers of the business cannot be
that a lack of resources to invest in the ascertained, and performance cannot be
right data communication tools was their improved. The lean startup methodology
main challenge, with 10% citing a lack of would advocate that organisations should
resources to invest in training. be built on their data, and therefore
investing in resources for data collection
A fifth (20%) of respondents blamed and communication is vital.
attitudes towards data for difficulties in
28

THANKS TO EVERYONE WHO RESPONDED TO THE SURVEY.

COMMENTS OR QUESTIONS - EMAIL SOFIA@GECKOBOARD.COM

A global survey on the
state of data driven
culture within startups

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Data driven culture in startups (2013 report)

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