Why Big Data is not Enough

"Big Data" is capturing more and more executive and board-level attention in both the for-profit and not-for-profit sectors, mainly because faster processing speeds and sophisticated computational algorithms offer a cheap way to simultaneously take into account millions of data points and reach clear, unbiased decisions. For example, when it comes to forecasting demand for independent and international school services, accurate and complete demographic trend data are essential, and can with considerable precision tell whether one is in a growing, stable or shrinking market. Strategists armed with demographic scans, economic forecasts, and good internal market research can get a good idea of what lies ahead in ways that previous generations could only guess. The quants are winning at more than just finance!But, as a new article from McKinsey makes clear, data, models and algorithms can only make clear what is likely to happen; these tools cannot by themselves make it happen. That is why leadership still matters--someone has to have the confidence, even bordering on the irrational, for real innovation to occur. Big Data helps, but Big Leadership is just as important. And McKinsey agrees.