What is data literacy?
A working definition from MIT Sloan
data literacy (noun)
The ability to read data, work with data, analyze data, and communicate about data.
Data scientists might be in demand, but data literacy — the ability to work with and understand data to drive business impact — starts with leaders. Leaders need to trust and understand data well enough to make good decisions. They also must drive organization-wide literacy efforts and create a culture of trust in data.
“The goal for a leader, from a data literacy perspective, should be, ‘How can I be a fast but effective consumer of analysis that is produced by my organization?’” said MIT Sloan professor of the practice Rama Ramakrishnan. He suggested keeping the following in mind:
- Before being shown data, think about what you expect to see. The contrast between what you expect and what shows up will highlight relevant parts of the report.
- Remember that data is uncertain. Leaders will need to live with this uncertainty or ask their team to get more data.
- Use the “common sense” test. If something is true, different data paths will lead to the same outcome.
- Don’t confuse causation and correlation.
Working Definitions: Data
MIT Sloan's Working Definitions explore the words and phrases behind emerging management ideas.
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