Why Many Companies Struggle to Use Their Data and What Makes a Good Business Leader
Photo: Nick Fewings

Why Many Companies Struggle to Use Their Data and What Makes a Good Business Leader

Wendy Lynch, an Analytic Translator, has spent decades working with data in businesses. Over that time, she has seen companies succeed, fail, and sometimes completely miss the point when it comes to using data effectively. According to Lynch, a good business leader does more than make decisions—they actively seek to understand the organization as a whole. Effective leaders are curious, willing to ask difficult questions, and ready to look beyond comfort zones. They rely on evidence rather than assumptions and encourage collaboration across departments to solve complex problems. Leaders with these traits are more likely to see the full picture and make decisions that truly improve performance.

“Every company above 500 employees would benefit from internal analytic expertise about their own business,” Lynch says. She adds, “I believe running a company without an integrated data platform is corporate malpractice. It is the same as piloting a plane on a cloudy night without instruments. Perhaps you know the general direction you’re headed and where you hope to land, but you remain under-informed about the current status of the flight or what problems you might have.”

Despite the importance of data, many leaders rely on industry trends and benchmarks instead of their own internal metrics. Lynch explains this is often because following external authority feels safer than confronting uncertain or uncomfortable truths. “Those who rely on industry trends often prefer the comfort of authority to the uncertainty of what they might uncover when they dig in,” she says. She continues, “It requires a certain level of courage to actively understand problems that may not have an easy answer. While some leaders say they want to be data-driven, not all of them mean it.”

Another challenge is what Lynch calls “artificial separation.” Companies often treat different areas of their business as independent when they are deeply connected. “It is only through integration that companies learn just how interconnected everything is,” she explains. “Turnover is a function of work schedule, culture, engagement, compensation, and performance. Absence and injury are a function of health, burnout, training, experience, and policy. Net revenue reflects how people are performing as well as how they use benefits. It’s one big puzzle, not a collection of little ones.”

Even when data is integrated, companies sometimes ask the wrong questions or assume the usual answers will work. Lynch recommends including multiple departments in data investigations. “Once data is integrated, the investigative team should include many stakeholders around the business plus people who have seen some of these sorts of connections before,” she says. “Don’t just ask benefits professionals about benefits and operations managers about operations. Ask bigger questions across stakeholders.”

A final pitfall is overreliance on visualization tools. While charts and dashboards can make data easier to understand, Lynch says they are often overestimated. “Don’t assume you, or your clients, will be able to make use of them easily,” she warns. “I estimate that over 90% of hands-on tools that I’ve seen sold to leaders have sat unused and/or were assigned to their direct reports to figure them out. Pretty pictures are secondary to having solid skills and systems.”

Lynch’s observations highlight a broader truth about leadership. Good business leaders do more than monitor metrics or follow trends—they actively engage with their organization. They connect different parts of the business, ask meaningful questions, and focus on turning information into actionable insight. Data alone does not improve performance; it is how leaders integrate, interpret, and act on that information that makes the difference.

The takeaway is clear. Companies need leaders willing to move beyond assumptions, break down silos, and invest in both people and systems that turn raw data into insight. Organizations should train employees, build cross-departmental teams, and focus on integrating data rather than relying solely on visualization tools. By doing so, they can make smarter decisions, improve outcomes, and understand how all parts of the business contribute to success. Ultimately, the difference between a company that struggles and one that thrives may come down to the curiosity, courage, and decisiveness of its leaders.