How to actually build a data-driven team

As a leader in supply chain operations, I’ve learned that building a data-driven culture is not just about implementing the right tools or technologies — it’s also about creating an environment where every team member feels empowered to ask challenging questions, dive deep into the data, and use insights to drive meaningful change.

And it happened almost as an accident. 

At my company, where I’ve been for almost five years, we’ve transformed our operations team into an absolute powerhouse of data-driven decision making. While we’ve always had our finger on the pulse and could report on all of the standard supply chain metrics, our culture began to shift when we onboarded Parabola to drill deeper into our data. 

Instead of accepting the status quo, my team started to ask questions, to dig deeper, to build on their own. I really believe with a tool like Parabola that when my team imagines a new reality, then can take it upon themselves to bring it to life.

It’s really invigorating for all of us. 

But taking a step back: Here’s how we built a truly data-driven culture on my team, what it’s meant for our business, and how other leaders can replicate our success.

Building the foundation

The foundation of our data-driven culture comes from a crystal-clear understanding of individual contributions to company goals. 

We use an OKR model, which gives each team member ownership over specific, measurable outcomes. This ownership is crucial — it’s not about holding hands and sharing responsibility. It’s about saying, “You can prove to me that you are achieving what we as a team have laddered up into the company and said that we will achieve.”

This approach fosters a performance-driven culture where team members can see their individual impact. It’s motivating because they can clearly track their contributions, and it also provides a framework for continuous growth. As a leader, I’ve found that when team members can say, “I’m the one that did this,” it creates a sense of pride and accountability that drives the entire team forward.

We’ve also invested in tools that empower our team to harness the instincts that they already had for getting super deep in the data. 

Onboarding Parabola has been huge here. It’s reduced the time it takes to build reports and analyze data by 50-75%, freeing up our team to dig deeper and ask more challenging questions. This has led to a notable shift in how we approach problems — we’re no longer content with blanket averages or high-level insights. Now, we’re drilling down to specific units, containers, and dates to uncover micro-opportunities that can drive significant impact.

Why it’s worth putting data first

The results of fostering this data-driven culture have been remarkable. We’ve seen impacts across several key areas:

1. Faster decision making: What used to take a quarter to analyze and decide upon can now sometimes be turned around in one to two weeks. This speed allows us to be more agile and responsive to market changes.
2. Deeper insights: We’re no longer looking at just high-level trends. Our team is now able to analyze data at a granular level, uncovering insights that were previously hidden. For example, we can now look at shipping costs not just by state, but by zone and postal code, allowing us to optimize our logistics more effectively.
3. Cross-functional collaboration: Our approach to working with data has broken down silos within the team: Our inbound and distribution teams, which previously had limited interaction, are now working together closely, sharing insights and driving collective improvements.
4. Employee growth and retention: Team members are developing new skills and taking on more strategic roles. They’re not just executing tasks; they’re driving strategy and feeling more invested in their work. This has led to increased job satisfaction and retention.
5. Tangible cost savings: We’ve been able to identify and capitalize on cost-saving opportunities more effectively. For instance, we’ve built Flows in Parabola to understand our utilization footprint at all distribution centers, leading to inventory storage and consolidation improvements.

Recommendations for others looking to do the same

For leaders looking to foster a similar data-driven culture in their teams, here are my key recommendations: First off, start with clear objectives. 

Ensure every team member understands how their work ladders up to company goals. Use frameworks like OKRs to create clarity and accountability. How can your team get excited about data if they don’t see their impact laddering up to it? This also aligns with my passion for fostering individual growth on my team. With clear goals and accountability, it provides a roadmap for teammates to expand their skills and take ownership of projects. 

From there, you need to make sure you have the right tools and tech stack in place. 

Without Parabola, we wouldn’t have 1) freed up the time used on data-heavy tasks to start asking bigger questions and 2) been able to actually access the level of data granularity that we do today. Be sure to give your team the resources they need to actually make decisions based on data. 

Up next, it’s all about stoking curiosity and being open to change. Create an environment where team members feel empowered to chase their instincts and dig deeper into the data. Celebrate when they uncover new insights or challenge existing assumptions.

As your team becomes more data-driven, be prepared for them to challenge the status quo. Be open to restructuring processes or teams based on the insights they uncover. Encourage your team to tackle both immediate, high-impact projects and longer-term, strategic initiatives that require more thoughtful development.

Stay committed to the end goal

Everywhere you look these days, you see articles emphasizing the importance of a data-driven culture — but actually walking the walk is an ongoing journey, not a destination. 

It requires continuous effort, openness to change, and a commitment to empowering your team. But the rewards — in terms of business impact, team engagement, and personal growth — are immeasurable. As we look towards 2025 and beyond, I’m excited to see how our data-driven approach will continue to transform our operations and drive our business forward. 

The possibilities are truly limitless when you have a team that’s empowered, curious, and puts data first.