How to avoid a common data mistake and improve performance

There is a mistake I often see made with data.

It’s avoidable and is made from the start before a piece of data is even looked at. It’s starting with the wrong approach, and leaves people wondering why they’re not getting the value they expected from their data.

In the world of data-driven decision-making, there can often be two contrasting approaches, each with its own philosophy and application.

💡The first, popularised by figures like Sir David Brailsford in the realm of sports performance, centres around the concept of marginal gains – the relentless pursuit of incremental improvements in every aspect.

💡 The second, whispering ‘less is more’, is grounded in Pareto’s Principle, suggesting that focusing on a crucial 20% can yield 80% of the desired results. Note, the values in that premise are not always exact but the principle is there will be a small number of factors driving a considerable portion of your overall output.

The Marginal Gains approach gained fame through its association with the success of Team Sky in cycling. The idea is simple but powerful:

by optimising every conceivable detail, even those seemingly insignificant, an accumulation of marginal gains can lead to a substantial overall improvement and competitive edge.

However, the Marginal Gains philosophy isn’t universally applicable. In reality, many organisations might not need to delve into the granular details to succeed. It can be resource intensive and not every business or team requires the same level of scrutiny on minor details to stay competitive. Indeed, doubt can even creep in when the once-promising strategy starts to create unnecessary complexity and feel like a maze of diminishing returns.

This is where Pareto’s Principle, often known as the 80/20 rule, can come into play. The principle posits that 80% of outcomes come from 20% of efforts. In the context of data analysis, it suggests that a focused examination of key factors can provide the majority of insights needed to make informed decisions.

Adhering to Pareto’s Principle can offer a more pragmatic and streamlined approach.

By identifying and focusing on the critical 20% of factors that drive 80% of outcomes, organisations can optimise their efforts and resources more efficiently. This approach acknowledges that not all data points are of equal importance. But. the challenge can be uncovering exactly what those handful of important factors are.

As so often the case, it’s not about choosing one philosophy over the other, but striking a balance, and finding the equilibrium between detail and efficiency.

Perhaps, the meticulousness of Marginal Gains is preserved for key areas where it truly matters, while Pareto’s Principle guides the team in efficiently allocating resources.

It’s about the right approach to help achieve your goal. If you know what that is of course.