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4 Ways to Improve Your Analytical Skills

07 Jan 2021

Data is ubiquitous. It’s collected at every purchase made, flight taken, ad clicked, and social media post liked—which means it’s never been more crucial to understand how to analyze it.

“Never before has so much data about so many different things been collected and stored every second of every day,” says Harvard Business School Professor Jan Hammond in the online course Business Analytics .

The volume of data you encounter can be overwhelming and raise several questions: Can I trust the data’s source? Is it structured in a way that makes sense? What story does it tell, and what actions does it prompt?

Data literacy and analytical skills can enable you to answer these questions and not only make sense of raw data, but use it to drive impactful change at your organization.

Here’s a look at what it means to be data literate and four ways to improve your analytical skills.

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What Is Data Literacy?

Data literacy is the ability to analyze, interpret, and question data. A dataset is made up of numerous data points that, when viewed together, tell a story.

Before conducting an analysis, it’s important to ensure your data’s quality and structure is in accordance with your organization’s needs.

“In order to transform data into actionable information, you first need to evaluate its quality,” says Professor Dustin Tingley in the Harvard Online course Data Science Principles . “But evaluating the quality of your data is just the first step. You’ll also need to structure your data. Without structure, it’s nearly impossible to extract any information.”

When you’re able to look at quality data, structure it, and analyze it, trends emerge. The next step is to reflect on your analysis and take action.

Tingley shares several questions to ask yourself once you’ve analyzed your dataset: “Did all the steps I took make sense? If so, how should I respond to my analysis? If not, what should I go back and improve?”

For example, you may track users who click a button to download an e-book from your website.

After ensuring your data’s quality and structuring it in a way that makes sense, you begin your analysis and find that a user’s age is positively correlated with their likelihood to click. What story does this trend tell? What does it say about your users, product offering, and business strategy?

To answer these questions, you need strong analytical skills, which you can develop in several ways.

Related: Business Analytics: What It Is & Why It’s Important

How to Improve Your Analytical Skills

Analysis is an important skill to have in any industry because it enables you to support decisions with data, learn more about your customers, and predict future trends.

Key analytical skills for business include:

Visualizing data
Determining the relationship between two or more variables
Forming and testing hypotheses
Performing regressions using statistical programs, such as Microsoft Excel
Deriving actionable conclusions from data analysis

If you want to provide meaningful conclusions and data-based recommendations to your team, here are four ways to bolster your analytical skills.

Related: How to Learn Business Analytics Without A Business Background

1. Consider Opposing Viewpoints

While engaging with opposing viewpoints can help you expand your perspective, combat bias, and show your fellow employees their opinions are valued, it can also be a useful way to practice analytical skills.

When analyzing data, it’s crucial to consider all possible interpretations and avoid getting stuck in one way of thinking.

For instance, revisit the example of tracking users who click a button on your site to download an e-book. The data shows that the user’s age is positively correlated with their likelihood to click the button; as age increases, downloads increase, too. At first glance, you may interpret this trend to mean that a user chooses to download the e-book because of their age.

This conclusion, however, doesn’t take into consideration the vast number of variables that change with age. For instance, perhaps the real reason your older users are more likely to download the e-book is their higher level of responsibility at work, higher average income, or higher likelihood of being parents.

This example illustrates the need to consider multiple interpretations of data, and specifically shows the difference between correlation (the trending of two or more variables in the same direction) and causation (when a trend in one variable causes a trend to occur in one or more other variables).

“Data science is built on a foundation of critical thinking,” Tingley says in Data Science Principles . “From the first step of determining the quality of a data source to determining the accuracy of an algorithm, critical thinking is at the heart of every decision data scientists—and those who work with them—make.”

To practice this skill, challenge yourself to question your assumptions and ask others for their opinions. The more you actively engage with different viewpoints, the less likely you are to get stuck in a one-track mindset when analyzing data.

2. Play Games or Brain Teasers

If you’re looking to sharpen your skills on a daily basis, there are many simple, enjoyable ways to do so.

Games, puzzles, and stories that require visualizing relationships between variables, examining situations from multiple angles, and drawing conclusions from known data points can help you build the skills necessary to analyze data.

Some fun ways to practice analytical thinking include:

Crossword puzzles
Mystery novels
Logic puzzles
Strategic board games or card games

These options can supplement your analytics coursework and on-the-job experience. Some of them also allow you to spend time with friends or family. Try engaging with one each day to hone your analytical mindset.

Related: 3 Examples of Business Analytics in Action

3. Take an Online Analytics Course

Whether you want to learn the basics, brush up on your skills, or expand your knowledge, taking an analytics course is an effective way to improve. A course can enable you to focus on the content you want to learn, engage with the material presented by a professional in the field, and network and interact with others in the data analytics space.

For a beginner, courses like Harvard Online's Data Science Principles can provide a foundation in the language of data. A more advanced course, like Harvard Online's Data Science for Business , may be a fit if you’re looking to explore specific facets of analytics, such as forecasting and machine learning. If you’re interested in hands-on applications of analytical formulas, a course like HBS Online's Business Analytics could be right for you. The key is to understand what skills you hope to gain, then find a course that best fits your needs.

If you’re balancing a full-time job with your analytics education, an online format may be a good choice . It offers the flexibility to engage with course content whenever and wherever is most convenient for you.

An online course may also present the opportunity to network and build relationships with other professionals devoted to strengthening their analytical skills. A community of like-minded learners can prove to be an invaluable resource as you learn and advance your career.

Related: Is An Online Business Analytics Course Worth It?

4. Engage With Data

Once you have a solid understanding of data science concepts and formulas, the next step is to practice. Like any skill, analytical skills improve the more you use them.

Mock datasets—which you can find online or create yourself—present a low-risk option for putting your skills to the test. Import the data into Microsoft Excel, then explore: make mistakes, try that formula you’re unsure of, and ask big questions of your dataset. By testing out different analyses, you can gain confidence in your knowledge.

Once you’re comfortable, engage with your organization’s data. Because these datasets have inherent meaning to your business's financial health, growth, and strategic direction, analyzing them can produce evidence and insights that support your decisions and drive change at your organization.

A Beginner's Guide to Data and Analytics | Access Your Free E-Book | Download Now

Investing in Your Data Literacy

As data continues to be one of businesses’ most valuable resources, taking the time and effort to build and bolster your analytical skill set is vital.

“Much more data are going to be available; we’re only seeing the beginning now,” Hammond says in a previous article . “If you don’t use the data, you’re going to fall behind. People that have those capabilities—as well as an understanding of business contexts—are going to be the ones that will add the most value and have the greatest impact.”

Are you interested in furthering your data literacy? Download our Beginner’s Guide to Data & Analytics to learn how you can leverage the power of data for professional and organizational success.

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7 Steps To Improve Your Analytical Thinking Skills

How are your analytical skills? Analytical thinking skills, like any other skills, are natural to some but not innate to everyone. You must have a keen interest, a sense of drive, and perseverance to learn about a certain topic to acquire this skill. After all, cultivating an analytical skill set is a skill like any other that takes honing and application. If you’re ready to enhance your analytical skills, then read on.

Why Do You Need Analytical Thinking Skills At Work?

Analytical thinking skills are critical in the workplace. It is essential for gathering data, solving complex problems, making rational decisions, as well as summarizing data and executing well-thought-out projects. When you’re applying for a job, a lot of hiring managers look at this particular skill along with other highly desired job skills to determine if you’re a good fit for the company. Clearly, this is a skill that every employee should gain and sharpen to be able to climb up the career ladder .

If you think your analytical thinking skills need some brushing up or you just want to improve it, here are some strategies you can employ:

Be Observant

Take a walk outside or observe people in your office. Use as many of your senses, see what’s happening around you. Is there anything that interests you? Remember you have to actively engage your mind.

Once again, the key to improving your analytical thinking skill is to keep your mind active and running. Read books and try to work on an active reading strategy: proactively read and digest and question what you’re reading. You can highlight, raise questions, read aloud or make predictions to stay engaged with your reading material.

Learn How Things Work

Don’t just find the solution but know how exactly certain things work. By scrutinizing how things work, you will have a better understanding of the process which is vital in stimulating your analytical skills.

Ask Questions

Did you know that curiosity makes us smarter? According to Neuroscientist Aracelli Carmago , “The more curious we are about a subject, the more it engages our cognitive functions, such as attention and memory.” With that said, asking more questions can help develop better problem-solving skills, retention, and memory of a subject. So don’t be shy to ask questions, especially if your query is valid.

Play Brain Games

If you want to improve your analytical thinking skills, it may be time to play Sudoku or other brain games like puzzles, chess, or crosswords. The best part of working on brain games to develop your analytical skill set is it is fun and doesn’t require a lot of motivation to get started.

Practice Your Problem Solving Skills

Keep in mind that for every problem, there is a solution. Visualize and be articulate in the presentation of a particular concept. Prepare two, three or even more solutions to a problem. And, if possible, do test runs on those solutions. See which one is the best and the most logical.

Think About Your Decisions

Making important decisions at work is very common. Thus, think hard and rationalize your decisions. What are the pros and cons of your decision? Ask for an expert opinion if available or do extensive research. Ask yourself, is this the best solution for this problem? Take a step back to rethink it a bit more, and then you can finally decide.

At the end of the day, like any skill development, you have to a lot of practice and application. Learn from your everyday experiences. Then, practice your analytical skills until it comes naturally.