Data Literacy - Decide Before You Analyse

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Start With the Decision

Decide what action or choice the analysis needs to support
A clear decision reduces wasted exploration and scope creep
The decision defines which metrics matter and which do not
If no decision exists, the output becomes a report with no purpose

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Translate Decision into Questions

Turn the decision into 2 to 4 focused questions
Good questions are specific, measurable, and time bound
Questions should include a comparison point like target or prior period
Clear questions prevent analysis from chasing every possible angle

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Define Success Criteria Early

Set thresholds that indicate when to act, pause, or investigate further
Agree on definitions so everyone interprets results the same way
Choose the right level of detail for the decision maker
Success criteria turns analysis into a repeatable decision process

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Select Only the Data You Need

Start with the smallest dataset that can answer the questions
Unnecessary columns and granularity increase noise and confusion
Choose segments that matter, like region, product, or customer type
Better focus often improves performance and clarity at the same time

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Analyse to Reduce Uncertainty

The goal is not to find every insight, but to reduce uncertainty for a choice
Use comparisons, drivers, and exceptions to explain what changed
Confirm whether patterns are stable or caused by one off events
Where uncertainty remains, capture what data is missing and why

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End With a Recommendation

Summarise what the evidence suggests and what action to take
Call out risks, assumptions, and what could change the conclusion
Assign an owner or next step when follow up is required
A recommendation is what turns analysis into impact

Best Practices for Decision Led Analysis

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Write the Decision Statement

Write a one sentence decision statement such as whether to hire, invest, or change a process. This forces clarity on what the analysis must enable. When the decision is explicit, it becomes easier to ignore distractions and irrelevant metrics.

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Limit the Question Set

Keep the analysis anchored to a small set of questions that directly inform the decision. Each question should map to a metric and a comparison point. If a question does not change the decision, it probably does not belong.

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Define Action Thresholds

Agree on thresholds that trigger action, such as a variance range, risk level, or service target. Thresholds prevent analysis paralysis by making outcomes clearer. They also allow reports to be reused as a consistent decision tool.

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Document Assumptions and Definitions

State key definitions and any assumptions used in the numbers, such as exclusions, time windows, or estimation methods. This reduces debate and makes interpretation consistent. It also makes it easier to update the analysis when conditions change.

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Start Small, Then Expand

Begin with the minimum data required and add detail only when needed to explain a change. This keeps the first view clear and keeps analysis effort focused. Expanding gradually reduces noise and avoids over modelling early.

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Close with a Decision and Next Step

Finish with the recommended decision, the evidence behind it, and the next step or owner. If the evidence is insufficient, specify exactly what is missing and what to collect next. A clear close turns analysis into action.