The CEO’s Guide to Data Literacy

Data literacy: the next frontier for executive leadership

As we become more and more obsessed with (and reliant on) AI, data literacy is no longer a technical skill — it’s a leadership imperative.

I know, it’s tempting to delegate anything “data” to analytics teams, IT departments, or innovation leads. But when it comes to embedding data into culture, decision-making, and strategy, the tone is set at the top. If a CEO doesn’t prioritise data literacy — the ability to read, write, and comprehend data — no one else will.

And yet, too many executive teams are overlooking this capability. The result? Strategies built on assumptions, talent underutilised, and transformation efforts that fall flat.

Here’s how to change that.

Competent leadership depends on evidence

Even with decades of investment in digital tools, many organisations still rely on instinct over insight when it comes to decision-making. Harvard Business Review found that companies with strong, evidence-based management practices consistently outperformed their peers on key metrics like growth and profitability.

So why don’t more organisations operate this way?

One major reason is a gap in data literacy. When leaders aren’t confident using data, they’re less likely to build it into the systems that drive performance — such as goal-setting, workforce planning, or resource allocation. And then what's left? A reliance on habits, hierarchy, and hunches instead of clarity and evidence.

Competent leadership requires more than experience — it requires the ability to interpret and act on data.

That’s why data literacy isn’t just a skill for the analytics teams, IT departments, and innovation leads. It’s a core capability for every senior leader.

From data to decisions: The CEO’s role in data culture

Data literacy is not about learning to code or becoming a data scientist. It’s about asking the right questions, interpreting the evidence, and making confident, informed decisions. For CEOs, this means ensuring that data is not just available, but usable — and used — across the organisation.

The World Economic Forum calls data literacy “a foundational skill for the digital economy,” highlighting its role in everything from productivity to resilience. It’s a capability that enables employees to challenge assumptions, spot opportunities, and navigate ambiguity with clarity.

And it starts with leadership. According to MIT Sloan Management Review, 89% of workers say their

CEO’s digital leadership directly impacts their confidence in organisational change. When CEOs engage with data — ask questions about evidence, use it in strategic discussions, and expect the same from others — they create the conditions for a data-centric culture to take root.

A framework for action: What leading CEOs do differently

Embedding data literacy into your leadership agenda requires more than a one-off training initiative. It means treating it as a long-term organisational capability — one that’s cultivated, measured, and tied to outcomes.

Here are four actions that distinguish data-literate CEOs:

1. They are role models of data-literate behaviour

Whether in board meetings or town halls, data-literate CEOs consistently reference evidence. They ask “What does the data say?” as a standard response to strategic questions, and they make data-visible thinking a core part of leadership behaviour.

2. They invest in targeted development

Generic data training won’t cut it. Instead, successful CEOs leverage capability frameworks like Databilities® to identify the specific data skills needed in different roles — be it monitoring and interpreting performance metrics, collecting important data and information at the frontline, or using data to better understand their customers and design new products and services.

3. They embed data into the strategy cycle

Data-literate leaders ensure that every strategic initiative — whether it’s a digital transformation or an operational program — is anchored in measurable outcomes. They build data into company targets, budget cycles and OKRs, budgeting cycles, and performance metrics.

4. They measure and benchmark progress

It’s not enough to say you value data literacy — you need to track it. Use the Databilities® framework to assess your organisation’s current data capability, and then compare your results to the Global Data Literacy Benchmark. These tools provide a data-driven approach to capability-building efforts and help prioritise where to focus.

From insight to impact: Making it real

When CEOs treat data literacy as a strategic asset, three things happen:

• Decisions improve: Leaders ask sharper questions, challenge assumptions, and navigate uncertainty with more confidence.

• Performance scales: Teams are better equipped to track outcomes, learn from results, and deliver value faster.

• Culture transforms: Data becomes part of how people work, not just a tool they occasionally use.

But it doesn’t happen automatically. Data literacy must be explicitly valued, developed, and measured. It must be visible in leadership behaviours, reinforced through processes, and supported with the right tools and language.

Let’s start with your people

You don’t need to become a data expert to lead in a data-driven world. But you do need to be aware of, and play your part within, the data ecosystem — and help others do the same.

Start by using the Databilities® framework to assess your organisation’s data capability. Then compare your results to the Global Data Literacy Benchmark to see how you stack up. Make data literacy a core part of your leadership culture — not just a technical side project.

Because in the era of AI, the most powerful transformation won’t come from algorithms. It will come from people who know how to ask better questions—and act on the answers.