Businesses are inundated with data. The key to success lies in data-driven decision making by not only collecting this data but also effectively driving action. Lufthansa Group, a leading airline, has embarked on a remarkable journey to turn its vast data resources into actionable insights, fundamentally changing how the company operates. This blog explores how Lufthansa is cultivating data-driven transformation leaders and why this approach is crucial for any business aiming to thrive in the digital age.
The Data Challenge: More Than Just Technology
Every 24 hours, a modern airplane generates a terabyte of data, offering a treasure trove of opportunities for airlines like Lufthansa. This data can enhance operational efficiency, improve customer satisfaction, and lead to significant business advancements. However, Lufthansa faced a common hurdle: technological investments alone were not enough. The real challenge is overcoming organizational resistance to change and fostering a culture of data-driven decision-making. This meant that leaders needed to be more than just tech-savvy; they had to become data champions who could inspire and guide their teams through this transformation.
Building Data Leaders: Lufthansa’s Approach
Lufthansa realized that to achieve true data-driven transformation, it needed to cultivate leaders who could harness the power of data and drive change across the organization. This led to the development of a comprehensive data leadership program focused on six key roles that leaders could play. Here’s a closer look at these roles and why they are essential:
1. Data Visionary: Creating a Vision
Impact: Data visionaries develop an overall vision for how data and AI can be leveraged to drive the business forward. They inspire the organization to embrace data and ensure everyone understands its strategic importance.
Why it Matters: By setting a clear vision, data visionaries help align the organization’s goals with data-driven initiatives, ensuring that efforts are focused and impactful.
2. Data Transformer: Promoting Transformation
Impact: Data transformers provide thought leadership and run programs to build data and AI literacy across the organization. They demonstrate how data and AI can drive business success.
Why it Matters: Transformers play a crucial role in changing the organizational mindset, helping employees see data not as a threat but as a powerful tool for innovation and growth.
3. Data Decision Maker: Generating Impact
Impact: Data decision-makers show how to turn data and AI into tangible business value. They democratize data-driven decision-making tools and set data quality standards.
Why it Matters: Decision makers ensure that data is used effectively to drive business outcomes, making sure that all levels of the organization can benefit from data insights.
4. Data Driver: Creating Value
Impact: Data drivers determine the value of specific data assets and design data-driven use cases. They enable data-driven decision-making processes.
Why it Matters: Drivers translate data into actionable insights, ensuring that data initiatives lead to real business improvements.
5. Data Collaborator: Connecting People
Impact: Data collaborators break down data silos and encourage cross-functional knowledge exchange. They integrate data and AI experts into workflows.
Why it Matters: Collaborators foster a collaborative environment where data can flow freely across the organization, leading to more holistic and innovative solutions.
6. Data Coach: Developing Competencies
Impact: Data coaches promote lifelong learning and empower employees to build new skills. They support the continuous development of data expertise.
Why it Matters: Coaches ensure that the organization continuously evolves, adapting to new data and AI advancements and maintaining a competitive edge.
Training Modules for Data Leaders
Lufthansa’s training program includes three modules: Spark, Inspire, and Activate. Each module targets different aspects of data leadership and helps leaders develop the necessary skills to drive transformation.
1. Spark
Objective: Teach that data drives business.
- Understand the power and limits of data and AI.
- Drive data use cases to build business value.
- Learn about data and AI megatrends.
Impact: The Spark module equips leaders with a foundational understanding of data and AI, helping them see the potential for business transformation.
2. Inspire
Objective: Use stories to drive use cases.
- Build a data strategy and vision.
- Create compelling data stories.
- Rally people around the data mission.
Impact: The Inspire module helps leaders become effective communicators of data’s value, inspiring their teams and stakeholders to embrace data-driven approaches.
3. Activate
Objective: Drive transformation.
- Learn the characteristics of influential data leaders.
- Build a supportive data culture.
- Handle challenges in an experimental culture.
Impact: The Activate module focuses on practical implementation, helping leaders create an environment conducive to data initiatives’ success.
Four Strategies for Success
Lufthansa’s journey provides valuable lessons for other organizations aiming to develop data-driven leaders:
1. Define Tailor-Made Data Leadership Roles
Clearly outline the strategic importance of data and AI and identify the gaps between current capabilities and future ambitions. Shape leadership roles to meet these needs.
2. Co-create the Leadership Program with Your Team
Involve leaders from various groups to understand their needs. Through workshops, interviews, and roundtables, align the program with strategic and operational goals.
3. Create Greater Organizational Awareness on Data Leadership
Collaborate with HR to integrate the program into leadership development offerings. Promote the program and gather feedback for continuous improvement.
4. Highlight Tangible Examples that Inspire Leaders
Showcase use cases that demonstrate the business value of data and AI. Use relatable examples to get leaders excited about the potential of data-driven transformation.
Effective data leadership is crucial for driving organizational transformation in the digital age. By defining clear roles, creating comprehensive training programs, and fostering a culture of continuous learning, Lufthansa is setting a powerful example of how to harness the potential of data. Organizations can learn from Lufthansa’s approach to develop their data-driven leaders and thrive in an increasingly data-centric world.
By embracing these strategies, businesses can overcome resistance to change, unlock the full potential of their data, and lead their industries with innovation and confidence.
REFERENCES
1. T.H. Davenport and J. Foutty, “AI-Driven Leadership,” MIT Sloan Management Review, Aug. 10, 2018, https://sloanreview.mit.edu; and T.H. Davenport, N. Mittal, and I. Saif, “What Separates Analytical Leaders From Laggards?” MIT Sloan Management Review, Feb. 3, 2020, https://sloanreview.mit.edu.
2. E.A. Teracino, “Data and Analytics as a Key Business Capability in Focus at the 2nd Annual Chief Data Officer and Information Quality (CDOIQ) European Symposium,” CDO Magazine, Sept. 18, 2023, www.cdomagazine.tech.
3. G. Vial, J. Jiang, T. Giannelia, et al., “The Data Problem Stalling AI,” MIT Sloan Management Review 62, no. 2 (winter 2021): 47-53.
4. “Successful Experiment to Detect Hand Luggage Using Computer Vision,” Lufthansa Group, accessed March 28, 2024, https://innovation-runway.lufthansagroup.com.
