In today’s business landscape, executive decisions are informed by increasingly large and complex datasets. As such, strong data literacy can help you get ahead by enabling you to ask sharper questions, spot red flags, communicate more effectively, and make better decisions.

Interpreting Data

1. Evaluate the Source

Not all data is created equal. Consider:

• Who provided the data? Consider the source’s intent. A vendor might share glowing statistics to promote a product. That doesn’t invalidate the data, but it should prompt you to take a closer look at how reasonable the claims seem.

• How close is this source to the original data? Primary sources (like peer-reviewed studies or internal reports) are ideal. Secondary sources (like media summaries or third-party blogs) may introduce bias or strip away context.

• Are claims supported by traceable evidence? If a secondary source makes dramatic claims, follow the chain of references to check if the original source is credible and/or being misrepresented. If the claim isn’t traceable, use search engines or AI to look for a trustworthy source that says something similar.

💡 Tip: When using AI to check claims, always verify that the AI’s sources are real and have relevant passages.

2. Look at the Presentation

Analyse your sources critically to filter out the facts. Consider:

• Are the findings sensationalized? Headlines designed to provoke emotion may exaggerate the actual data.

• Is the context clear and applicable? Studies done in highly controlled environments may not reflect real-world scenarios.

• Does the data provide actionable value? Summarize the findings in the simplest terms possible to see whether they’re truly relevant or just appear so because of buzzwords.

3. Run a Quick Reasonability Check

You don’t need a data science degree to check if a study’s claims make sense. Consider:

• Do the conclusions logically follow from the data? If a report says, “X caused Y,” could something else have caused Y instead?

• Were predictions validated? If a study makes forecasts, look for follow-up data. Have those predictions held up over time? In general, have the study’s predictions been validated by other researchers?

• Is the study design transparent? Reliable research usually explains how the data was collected and analyzed. If methods are vague or missing, the research can’t be validated by other experts, and the claims are more likely to be exaggerated.

Sharing Data

Regardless of who you’re presenting data to, there are some consistent strategies you can use to communicate as effectively as possible.

1. Frame the “Why”

Before sharing any data, explain why you believe it’s important for others to see. Important context includes: the business objective the data relates to, the issue/opportunity the data is focused on, and the potential decisions the data may inform.

2. Simplify for Clarity

Effective data visualizations should reduce cognitive load so that leaders can quickly understand the situation and focus resources on strategizing. Prioritize clarity, using visuals and text that your audience can understand most efficiently.

3. Know Your Audience

Tailor your data presentation based on who’s in the room. For example, sales teams may want customer trends and market insights whereas customer success teams would prefer churn indicators and satisfaction data. Also remember to protect sensitive information according to your organization’s data privacy policies.

4. State Conclusions Clearly

Don’t assume everyone will interpret the data the same way. Always spell out your conclusions, highlight any assumptions or limitations, and call out any potential misinterpretations in advance. Your transparency will build trust while ensuring alignment between stakeholders.

Final Thoughts

Applying these frameworks can help you adapt to the modern business environment while becoming a better executive all-around.

At NetNow, we’re committed to giving credit teams easy access to trustworthy, actionable data. If your organization is ready to accelerate credit approvals and reduce bad debt, book a demo to see how our solution supports smarter decisions, faster.