What does "data-driven decision making" mean?

Data-driven decision making refers to the practice of utilizing data analysis to inform and guide decisions, rather than relying solely on intuition, personal opinions, or anecdotal evidence. This approach emphasizes the systematic evaluation of quantitative and qualitative data to identify trends, patterns, and insights that can lead to more effective and rational choices.

The focus on data analysis allows for a more objective understanding of the context in which decisions are made. By grounding decisions in factual information rather than subjective perspectives, organizations can reduce bias, enhance accountability, and improve outcomes. This method is particularly important in continuous quality improvement, where ongoing assessment of processes and results is crucial for achieving sustained enhancements.

In contrast, relying on team discussions, past experiences, or managerial opinions, which do not incorporate a structured analysis of relevant data, may lead to decisions that are less informed and potentially flawed. Therefore, making choices based on data analysis fosters a more reliable decision-making process that supports continuous improvement efforts.