The Unseen Edge: Why “People First, Data Second” Isn’t Just a Motto, It’s an Imperative
It’s easy to fall into the trap of believing that the more dashboards we build, the more metrics we track, and the more algorithms we deploy, the better our businesses will perform.
Yes, data is undeniably critical but at Sabot Family Companies, we operate from a conviction that: People First, Data Second.
It’s the bedrock of our operating philosophy and a fundamental reason why we achieve long-term value creation. We want to understand what is happening, but know that only people can tell you why it’s happening, and how to truly fix it.
The Illusion of Data Primacy
Organizations collect mountains of data, analyze it endlessly, and then use it to dictate strategies that overlook the most vital asset: their human capital. This leads to decisions made in a vacuum, driven by spreadsheets rather than the lived experiences of those on the front lines.
The result? Disengaged workforces, top-down mandates that breed resentment, and missed opportunities because the real insights, the ones rooted in operational reality, were never truly heard.
I’ve seen this play out in businesses struggling with everything from declining productivity to high turnover. Management, armed with their quarterly reports, points fingers at numbers, but rarely at the underlying human issues. This is where “People First, Data Second” becomes not just a differentiator, but a necessity.
People
- They Hold the True Insights: No matter how sophisticated your data analytics, the person on the factory floor, the customer service representative answering calls, or the sales manager in the field possesses a nuanced understanding that data alone cannot capture. They see the anomalies, feel the friction points, and often know the simplest, most effective solutions. Our approach, rooted in the Sabot Operating System, is to “go where the work is done.” This means actively listening, engaging, and empowering the very people who interact with processes every single day. We aim for a 90% implementation rate of employee ideas, because we know that the most impactful improvements often come from those closest to the problem.
- They Drive Execution: A brilliant strategy derived solely from data is useless without an engaged workforce to execute it. When people feel heard, valued, and genuinely involved in problem-solving, their commitment skyrockets. This creates an environment of positive dissatisfaction - a healthy tension where everyone is relentlessly seeking to get 1% better every day. We believe in building cultures where employees are so invested, they “frickin’ tap dance into work.” That level of buy-in cannot be commanded by data; it must be cultivated through trust and respect.
- They Are the Source of Innovation: Innovation isn’t born in a data model; it’s born from human curiosity, creativity, and the willingness to experiment. By prioritizing our people, we foster an environment where ideas are encouraged, mistakes are learning opportunities, and continuous improvement becomes ingrained in the DNA of the organization. This isn’t just about efficiency; it’s about building long-term value creation through dynamic adaptation and ingenuity.
We Measure Data
Once people are empowered and engaged, data becomes an incredibly powerful tool. It transforms from a blunt instrument of judgment into a precise instrument of improvement.
- Data Validates, Not Originates: When an employee identifies a bottleneck or suggests a process improvement, data can then be used to quantify the impact, track progress, and validate the effectiveness of their solutions.
- Data Pinpoints Opportunities: Once the human element has identified the “why,” data can pinpoint where the biggest leverage points are for improvement, allowing for targeted resource allocation.
- Data Informs, Never Replaces, Judgment: Data provides crucial context and helps refine decisions, but it should never replace the seasoned judgment of experienced operators who understand the nuances of human behavior and market dynamics.
We Build People
Our patient capital approach allows us the luxury of investing deeply in our people. We’re not flipping companies in 5-7 years; our best hold period is forever. This means we have the time and incentive to truly build capabilities within our teams, knowing that an engaged workforce is the ultimate driver of sustainable growth and per-share returns.
In the end, the businesses that thrive aren’t the ones with the most data, but the ones that most effectively leverage their human potential. We’ve been in the trenches, turning around companies by focusing relentlessly on the people who do the work. It’s a conviction born of experience: put your people first, equip them with the right tools, and the data will reflect the extraordinary results that follow.
If you’re an owner or founder who understands that the heart of your business beats through your people, and you’re looking for a partner who shares that belief, then perhaps we should talk. Because for us, it’s always been about building legacies, one person at a time.
