‘Fail fast, Learn faster’ – because there’s no substitute for lived experience

Intuition, informed by user feedback, can help you identify potential problems and refine your product or service

Here are some key strategies early stage founders can implement to use their intuition in right direction

Today’s early-stage founders often receive an overwhelming amount of guidance and information on the importance of data usage. Data may be  ‘the new oil’ but that isn’t entirely true in your earliest days since internal data won’t be readily available! And, like oil, it still needs to be refined before it can really be used. 

The challenge lies in finding an approach that truly works for you. Knowledge is power, but in a world of information overload, the maxim “too much of a good thing” can also ring uncomfortably true.

This article will equip you with a framework to deal with this deluge and give you the mental tools to incorporate intuition alongside data in your strategic decision-making. This delicate balancing act is pivotal to success, so let’s get started. 

The Dangers Of Data Overload

Jim Barksdale, the legendary CEO of AOL, once famously stated, “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” This beautifully encapsulates the challenge startups face today. 

In your formative phases, an influx of analytics can lead to ‘analysis paralysis,’ where decision-making can stall under the weight of too much information. 

My mantra at this formative stage is ‘Fail fast, Learn faster’ – because there’s no substitute for lived experience. Select  3-4 key metrics to track for every experiment, set a reference benchmark and constantly re-calibrate as per the outcomes. 

Intuition As The Guiding Force

Forget the idea that data can solve every business challenge and your multiple daily dilemmas. It can tell you how many people visited your website, but not why they dropped off without converting. More often than not, it can help you form hypotheses, but won’t concretise your conclusions. 

Here’s where intuition, informed by user feedback, can help you identify potential problems and refine your product or service. 

It might be helpful to think of data providing the map, but intuition acting as the compass. As a founder, your point of difference is you – your own personal experience, knowledge and gut feel. You must find a way to trust that experience and intuition to guide your organisation through uncharted waters in those early days, especially where data might be sparse. 

Striking The Perfect Balance

But to prosper, you still need to balance that intuition with hard facts. Navigating that interplay demands structure and agility. 

Here are some practical strategies that could help you:

Set Clear Metrics

Effective goal setting hinges on defining clear, actionable metrics tightly aligned to strategic business objectives. Companies that set specific and challenging goals are 10 to 25% more likely to perform at a high level than those with easy or vague goals, according to the Harvard Business Review. 

Your metrics should be quantifiable, directly tied to critical success factors and regularly reviewed to ensure they remain relevant. Make their ownership within the team clear to foster accountability and prompt action when they are not met.

Embrace Contextual Analysis

Using external data such as market trends and economic indicators is essential for informed decision-making. It’s crucial too to know your enemy and tailor your strategy to actual market demands – so figure out how you stack up against your competitors, what it will cost to switch to you and how their sales and marketing approach compares. 

Just make sure to balance those external inputs with your own data, like user activity, to avoid giving them too much weight. By synthesising external and internal data, early-stage startups can tailor their strategies to actual market demands rather than theoretical models.

Focus On Leading Indicators

Early on, leading indicators such as customer engagement metrics (product usage metrics, inbound customer inquiries) or your  forward-looking sales pipeline; are likely to be far more reliable signposts of future success for you than lagging indicators like ACVs, sales figures or NPS, especially where traditional metrics may not yet yield much insight. 

A report from Bain & Company suggested companies that excel in customer engagement practices grow revenues roughly 2.5 times faster than their industry peers and deliver two-to-five times the shareholder returns over the next decade.

Iterate And Refine

Adopting a mindset of ‘prudence over perfection’ involves using real-world outcomes and user feedback to refine strategies and metrics. It should lead to more agile and responsive decision-making across your organisation and a cycle of continuous improvement. 

As per Deloitte, iterative cycles increase the chances of project success by 50% compared to traditional project management approaches. This iterative cycle allows startups to adapt quickly to changes and refine their approach based on actual results and user feedback.

Prioritise Customer Interaction

Interacting directly with customers provides irreplaceable insight. It will help you validate business hypotheses and ensure your product or service aligns with customer expectations and needs. 

A Salesforce study revealed that 84% of customers say being treated like a person, not a number, is crucial to winning their business. Regular customer feedback sessions, whether through direct dialogue, surveys, or user testing, can help you make significant improvements in product development and customer satisfaction.

I cannot emphasise this last point enough. Customers are always telling you something. No data, no beautiful dashboard or excel spreadsheet can beat it. Establishing a regular feedback loop can lead to substantial improvements in product development and overall customer satisfaction.

This proactive approach goes beyond mere data collection; it embeds a customer-first culture within your organisation. Engaging directly with your customers and sharing the insight that comes with it helps every team member feel like they know the customers too – leading to better, more customer-centric decision-making. 

Don’t just rely on dashboards and spreadsheets, picking up the phone or meeting face-to-face with customers can provide the nuanced context for your team that quantitative data often misses. 

Cultivating The Right Culture

Ultimately, the goal is to foster a culture that values both data and intuition. Each has its place and when harmoniously integrated, they form a robust framework for strategic decision-making. Encouraging every team member to experiment without fear of failure can help foster valuable ideas. Such a culture encourages agility and responsiveness, allowing startups to thrive in dynamic environments.

‘Fail fast, Learn faster’ – because there’s no substitute for lived experience

Intuition, informed by user feedback, can help you identify potential problems and refine your product or service

Here are some key strategies early stage founders can implement to use their intuition in right direction

Today’s early-stage founders often receive an overwhelming amount of guidance and information on the importance of data usage. Data may be  ‘the new oil’ but that isn’t entirely true in your earliest days since internal data won’t be readily available! And, like oil, it still needs to be refined before it can really be used. 

The challenge lies in finding an approach that truly works for you. Knowledge is power, but in a world of information overload, the maxim “too much of a good thing” can also ring uncomfortably true.

This article will equip you with a framework to deal with this deluge and give you the mental tools to incorporate intuition alongside data in your strategic decision-making. This delicate balancing act is pivotal to success, so let’s get started. 

The Dangers Of Data Overload

Jim Barksdale, the legendary CEO of AOL, once famously stated, “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” This beautifully encapsulates the challenge startups face today. 

In your formative phases, an influx of analytics can lead to ‘analysis paralysis,’ where decision-making can stall under the weight of too much information. 

My mantra at this formative stage is ‘Fail fast, Learn faster’ – because there’s no substitute for lived experience. Select  3-4 key metrics to track for every experiment, set a reference benchmark and constantly re-calibrate as per the outcomes. 

Intuition As The Guiding Force

Forget the idea that data can solve every business challenge and your multiple daily dilemmas. It can tell you how many people visited your website, but not why they dropped off without converting. More often than not, it can help you form hypotheses, but won’t concretise your conclusions. 

Here’s where intuition, informed by user feedback, can help you identify potential problems and refine your product or service. 

It might be helpful to think of data providing the map, but intuition acting as the compass. As a founder, your point of difference is you – your own personal experience, knowledge and gut feel. You must find a way to trust that experience and intuition to guide your organisation through uncharted waters in those early days, especially where data might be sparse. 

Striking The Perfect Balance

But to prosper, you still need to balance that intuition with hard facts. Navigating that interplay demands structure and agility. 

Here are some practical strategies that could help you:

Set Clear Metrics

Effective goal setting hinges on defining clear, actionable metrics tightly aligned to strategic business objectives. Companies that set specific and challenging goals are 10 to 25% more likely to perform at a high level than those with easy or vague goals, according to the Harvard Business Review. 

Your metrics should be quantifiable, directly tied to critical success factors and regularly reviewed to ensure they remain relevant. Make their ownership within the team clear to foster accountability and prompt action when they are not met.

Embrace Contextual Analysis

Using external data such as market trends and economic indicators is essential for informed decision-making. It’s crucial too to know your enemy and tailor your strategy to actual market demands – so figure out how you stack up against your competitors, what it will cost to switch to you and how their sales and marketing approach compares. 

Just make sure to balance those external inputs with your own data, like user activity, to avoid giving them too much weight. By synthesising external and internal data, early-stage startups can tailor their strategies to actual market demands rather than theoretical models.

Focus On Leading Indicators

Early on, leading indicators such as customer engagement metrics (product usage metrics, inbound customer inquiries) or your  forward-looking sales pipeline; are likely to be far more reliable signposts of future success for you than lagging indicators like ACVs, sales figures or NPS, especially where traditional metrics may not yet yield much insight. 

A report from Bain & Company suggested companies that excel in customer engagement practices grow revenues roughly 2.5 times faster than their industry peers and deliver two-to-five times the shareholder returns over the next decade.

Iterate And Refine

Adopting a mindset of ‘prudence over perfection’ involves using real-world outcomes and user feedback to refine strategies and metrics. It should lead to more agile and responsive decision-making across your organisation and a cycle of continuous improvement. 

As per Deloitte, iterative cycles increase the chances of project success by 50% compared to traditional project management approaches. This iterative cycle allows startups to adapt quickly to changes and refine their approach based on actual results and user feedback.

Prioritise Customer Interaction

Interacting directly with customers provides irreplaceable insight. It will help you validate business hypotheses and ensure your product or service aligns with customer expectations and needs. 

A Salesforce study revealed that 84% of customers say being treated like a person, not a number, is crucial to winning their business. Regular customer feedback sessions, whether through direct dialogue, surveys, or user testing, can help you make significant improvements in product development and customer satisfaction.

I cannot emphasise this last point enough. Customers are always telling you something. No data, no beautiful dashboard or excel spreadsheet can beat it. Establishing a regular feedback loop can lead to substantial improvements in product development and overall customer satisfaction.

This proactive approach goes beyond mere data collection; it embeds a customer-first culture within your organisation. Engaging directly with your customers and sharing the insight that comes with it helps every team member feel like they know the customers too – leading to better, more customer-centric decision-making. 

Don’t just rely on dashboards and spreadsheets, picking up the phone or meeting face-to-face with customers can provide the nuanced context for your team that quantitative data often misses. 

Cultivating The Right Culture

Ultimately, the goal is to foster a culture that values both data and intuition. Each has its place and when harmoniously integrated, they form a robust framework for strategic decision-making. Encouraging every team member to experiment without fear of failure can help foster valuable ideas. Such a culture encourages agility and responsiveness, allowing startups to thrive in dynamic environments.