5 Tips for Making Better Decisions by Analyzing Project Data

If there is one word that can summarize today’s business environment, it is data-driven.  The practical project manager realizes that the ability to make informed decisions is critical to the success of any project. Data analysis transforms raw information into actionable insights, enabling project managers and teams to navigate complexity with clarity.  Here are 5 tips for using project analytics data to make better decisions.

1. Understand What Decision You need to Make

To make good data-driven decisions, you need to understand what decision you need to make. Are you determining the best mitigation strategy for risks? Are you evaluating the feasibility of a new project phase? Are you evaluating whether additional funding should be requested?  Once you know what decisions you need to make, define clear goals so that you can focus your analysis and ensure you’re examining the right data.

2. Set Clear Measurable Objectives for the Decision

Decisions are only as good as the data behind them. Set clear, measurable objectives for the decision and then align the data collection process with these objectives. Poor quality or irrelevant data can lead to flawed conclusions, so it is important to prioritize accurate, timely and context-specific data collection from reliable sources.

3. Regularly Validate the Accuracy of Your Data

As you perform your analysis, use project management tools to gather metrics like budget performance, task completion, adherence to quality standards, etc. Raw data can be overwhelming and difficult to interpret. Data visualization tools like Power BI, Tableau or Excel can help transform data into patterns and trends and outliers that aid in interpreting the data. Use direct observations (interviews, surveys) and cross tabulations to aid in validating the data.

4. Make Collaborative Interpretations of Data

Data analysis should not be a siloed activity. As you analyze trends, recurring patterns and historical data to gain insight, it is important to collaborate with stakeholders so that diverse perspectives are considered, reducing the risk of bias or oversight. Share your data findings with your team and stakeholders and encourage open discussion about potential interpretations. Leveraging the expertise from team members with different backgrounds can greatly enhance your understanding of the data and lead to better decision-making.

5. Monitor the Impact of Your Data-Driven Decision

After the decision has been made, monitor the outcomes focusing on desired results.  Implement post-decision performance metrics as part of a feedback loop for future decision-making. Conduct retrospective reviews to evaluate the decision-making process and adjust strategies based on acquired feedback.

Conclusion

Analyzing project data empowers teams to make informed, effective decisions that drive success. By defining clear goals, collecting quality data, leveraging visualization tools, and engaging in collaborative analysis, you can transform data into actionable decisions. A data-driven approach will better equip the practical project manager to navigate challenges, seize opportunities, and achieve project objectives.