What leaders should focus on to improve data maturity
Sian Basker, Co-Chief Executive, Data Orchard
When we launched our online Data Maturity Assessment back in October 2019, one of the big drivers was unlocking insights about data maturity in the nonprofit sector and how to improve it. Since then, the tool has grown it’s reach and is being used by organisations across the spectrum of not-for-profit, public and commercial sectors. With almost 20,000 users, from over 1,200 validated organisations all over the world, it reveals unique insights into data maturity and how it differs (and doesn’t) across organisations, sectors and geographies.
Every year, we delve into these insights in our State of the Sector analysis. Our fifth report in the series – State of the Sector: Data Maturity 2025 - A global cross-sector comparison – was our first detailed comparison of the not-for-profit, public and commercial sectors, and revealed some perhaps surprising findings.
The analysis provides some really important insights into what drives data maturity, particularly when it comes to leadership, skills and culture. Without wishing to share too many spoilers, some of the headlines include:
Data maturity is progressing slowly. But most of the key sticking points and advice from over the past five years remain unchanged.
The big picture for the three sector types is remarkably similar, albeit there are different areas of strengths and weaknesses for each.
Data maturity takes time, energy and investment. Those at the forefront tell us it’s taken a long time to get there and are much more likely to agree their leaders are investing enough in data.
So, what has five years of analysis taught us about what leaders need to focus on to improve data maturity?
Gaining more value from your data
One striking stat that appears again and again in our analysis is that, while most organisations say their leaders think data is important, only a small minority think the leadership actually prioritises data as a vital resource and understands how to use it. Only around 1 in 20 nonprofits think their leaders understand and drive value from data, and prioritise it as a vital resource (slightly more so in commercial organisations).
Echoing this, across the board, only a minority are using data to influence their outward-facing services. The commercial sector has a slight edge in this regard, but even then, only around half are using data moderately or extensively to influence things like design and delivery, or targeting of services.
Takeaway: The most data-mature organisations see huge rewards in their ability to use data to influence both internal capabilities and outward-facing services. The vast majority of leaders are not currently reaping these rewards.
Improving Data quality
Access to good data is likely holding many back from making data-informed decisions.
Organisations hold lots of data but data collection and quality are major issues across the board.
In the commercial and not-for-profit sectors, staff in less than half of organisations tend to agree collection is consistent and efficient. In the public sector, this drops to less than a quarter.
And less than half of organisations in the commercial sector show confidence that their data is complete, accurate and up-to-date. In the not-for-profit sector, this drops to a third of organisations and in the public sector, it drops to around a quarter.
Takeaway: Many organisations are looking to advanced data tools like AI to solve challenges, but, for any tool to provide useful and meaningful analysis, the quality of the data used is critical. Leaders need to invest in data quality as a priority.
Improving data skills at all levels
Quality data and good tools only matter if people have the skills to use them.
For five years in a row, our analysis has stubbornly shown skills to be the weakest theme in data maturity. This applies to all three sectors, at all levels of an organisation.
Our Data Maturity Assessment breaks down data maturity into seven key themes: Uses, Skills, Tools, Culture, Leadership, Analysis and Data. Skills consistently scores lowest across not-for-profit, public and commercial sectors, showing that it is a key factor holding many organisations back.
As well as repeatedly being the weakest area, skills has repeatedly shown to be lacking at all levels of organisations. Our assessment explores skills in three areas: leadership skills, specialist skills, and ‘everybody’ skills. Across sectors, at all levels, only a minority feel confident that their organisation has the right data skills. The commercial sector is slightly ahead at all levels – particularly in confidence in their leadership’s skills – but, even then, only around half agree their leaders have the right skills.
Takeaway: Skills audits and training (including for the leaders themselves) are vital if leaders want to make progress with data.
investing more in data
Whilst there’s slightly more agreement in the commercial sector, no sector is particularly strong on agreeing that leaders invest enough in data. Public sector organisations are particularly likely to disagree that enough is being invested. Conversely, in organisations that are mastering data, around 90% agree that leaders do invest enough.
Takeaway: Leaders need to invest time and budget in data-related resources (people, skills, learning, tools), if they want to see improvements.
Recognising organisational culture as key to data maturity
Our analysis over the last five years (as well as our work with countless organisations) has shown culture to be one of the strongest influencing factors in data maturity. There is typically a stronger correlation between the culture of an organisation and its data maturity than, for instance, between tools and data maturity.
Takeaway: Leaders should focus more on encouraging a culture of innovation and curiosity in data, which will drive better use of data across their organisations.
Finding out more about data maturity across sectors
Organisations that are data mature are:
purposeful in how they use and analyse data;
practical with high quality data and tools; and
people-focused, with pro-active data-empowered leadership, a data culture that thrives on learning and a skilled workforce.
As well as the above recommendations for leaders looking to improve data maturity in their organisations, our 2025 State of the Sector report includes key recommendations for the three sectors – not-for-profit, public and commercial. Read the report for all the insights.