“Analyze your life your love your future with your improved analytical skills.”
In the digital age that we live in, in order to be able to run a business –either a start-up or large company- it is really important to acquire strong analytical skills; collecting, organizing, analyzing and interpreting data plays a key role in running successfully a business. It is clear to all entrepreneurs of all ages that data is a powerful weapon and, if used wisely, it can help them achieve their goals faster and more effectively and outrun the competition.
Analytical skill is the ability to visualize, articulate, and solve both complex and uncomplicated problems and concepts and make decisions that are sensible and based on available information. Such skills include a demonstration of the ability to apply logical thinking to gathering and analyzing information, designing and testing solutions to problems, and formulating plans.
It is really important to be able to analyse information as, the economic decisions we make impact how we live and the future of companies and markets; The political decisions we make can change the course of legislation locally, regionally and globally; The business decisions we make can enhance the quality of our work and even open doors to new opportunities; The personal decisions we make affect the relationships we have with family, friends and coworkers.
Big data has changed the way startups channel their efforts and the way they create their strategies because it clearly highlights if the company is going in the right direction. Data-driven metrics allow entrepreneurs to make more informed decisions, to create result-driven marketing strategies, to increase sales and better understand their customers and the way their products address the customers’ needs and pains.
A combination of better understanding, filtering, and application of data can help you solve problems faster – leading to smarter and more effective decision-making. You have to learn how to use Microsoft Office, like Excel, PowerPoint and other common data analysis and communication tools, and maybe most importantly, you have to know how to present data to others in a way that gets them engaged in your story and motivated to act.
There are many examples of analytical skills. A few examples include:
- Analyzing abilities: The ability to take large volumes of data and then analyze trends and produce a result
- Dealing with problems: Give examples of problem-solving at work
- Programming: Write a systems programme with accurate results output
- Reporting: A written report on the effectiveness of a particular event such as a political campaign
- Handling assignments effectively: Discovering a more efficient and productive way to complete a particular job task.
- Process: Creating a set of steps to implement a process that may have an outcome.
- Problem handler: Identifying a problem and then finding a solution to avoid becoming a major problem.
- Collect information, analyze the resulting, and a solution to a problem
Supporting evidence and practices
In order to be able to further develop your analytical skills, you have to always ask the right questions; realize what you don’t know; make no assumptions; don’t take what you see at face value; turn information into knowledge. Also, you have to have in mind: Why do you want to achieve? What support do you need? How will you achieve your goal? How long will it take you to carry out your plans? Where do you want to give emphasis? Thus will be easier for you to analyse all the information and data collected and make the right decision.
A logic tree is a tool that can help you to push the thought process to cover all aspects of a problem, analyse the collected information and data and make a decision. The logic tree will help you determine right focus and priorities; form foundation for data collection; support establishing stakeholder buy-in; facilitate teamwork. A logic tree cannot replace thinking and creativity, and it cannot replace detailed analysis. There are three main types of logic trees:
- issue tree – breaks up a problem in subcomponents to identify possible causes;
- hypothesis tree – structure to test/evaluate a hypothesis by finding and verifying sub-arguments;
- decision tree – structures key questions to select one of several solutions.
Books
Simon, Herbert (1991). “Bounded Rationality and Organizational Learning,“ Organization Science 2 (1): 125–134
Simon, Herbert (1955). “A Behavioral Model of Rational Choice,” Quarterly Journal of Economics, vol. 69, 99-188
McShane, S. L. & Glinow M. (2009). Organizational Behavior. McGraw Hill