In 2026, leadership is no longer just about experience or intuition. It’s about making smart, informed decisions based on facts. That’s why data literacy for leaders is becoming one of the most important future leadership skills.
Organisations across South Africa and around the world now rely on data to improve performance, reduce risk, and grow faster. Leaders who understand data can guide their teams with confidence. Those who do not may struggle to keep up.
This article explains why data literacy is important, what skills leaders need, and how business students can prepare for a data-driven future.
What is data literacy?
Data literacy is the ability to read, understand, analyse, and communicate data effectively. In simple terms, it allows you to read and understand numbers, charts, and reports so you can use them in real life.
In today’s world, data literacy is becoming a key workplace skill.
Whether you manage people, budgets, or projects, you must understand data analysis and how it affects decisions based on real evidence.
How is data literacy different from data science?
Many people confuse data literacy with data science, but they are not the same.
A data scientist builds complex models, writes code, and uses advanced tools to analyse large datasets. As such, data science is technical and specialised.
Data literacy skills, on the other hand, are broader and more practical. Leaders don’t need to build algorithms. They need to interpret reports, understand data visualisation, and ask the right questions.
In short:
- Data science creates the analysis.
- Data literacy helps leaders use the results.
Both are important, which is why it’s no surprise that business analytics and data careers continue to grow.
Why is data literacy important for leaders?
Many organisations now speak of the importance of data literacy because it directly affects performance, innovation, and customer and employee experience. But why is data literacy important for leaders specifically?
Improves data-driven decision making
Leaders constantly need to make choices about budgets, staffing, strategy, and investments. Without data literacy skills, they can only rely on opinions. On the other hand, with data, they can make an informed decision supported by evidence.
Strengthens operational efficiency
When leaders understand metrics and performance dashboards, they can identify problems early. As a result, they’ll be able to:
- Reduce waste
- Improve processes
- Support smarter investments
Helps create a data-driven culture
A leader who understands data encourages teams to use it daily, which leads to better collaboration, clearer goals, and improved accountability.
In fact, Forbes suggests that it’s critical for companies to embed data into the way people work instead of treating it as a one-time training programme.
Protects the organisation
Poor data quality can lead to costly mistakes. Leaders who understand data analysis can question results and avoid risky decisions based on incomplete information. As such, they can avoid major financial losses.
In short, data literacy is crucial because it turns information into action. It allows leaders to use data effectively, guide strategy, and build long-term success.
What data skills will leaders need in 2026?
The workplace is changing quickly. Here are some key data literacy skills of 2026 that all leaders need:
- Understanding basic data: Leaders must understand basic data such as revenue trends, customer behaviour, and operational metrics. They should know how to read spreadsheets and reports.
- Data visualisation: Charts and dashboards are common tools in business. Leaders must interpret graphs and spot patterns quickly.
- Critical data analysis: Leaders should question results and understand how data is collected. This ensures good data quality and avoids misleading conclusions.
- Business analytics skills: Modern leaders need practical business analytics skills. This includes understanding performance indicators (KPIs), forecasting trends, and measuring success.
- Data-driven decision making: Leaders must connect data insights to strategy. The goal is not just to collect data but to turn it into action.
- Ethical and responsible data use: Data privacy and security are growing concerns. Leaders must ensure data is handled responsibly.
- Building data literacy in teams: Improving data literacy across the organisation is a key leadership task. Leaders must support training and encourage data-driven thinking.
These skills are part of broader future leadership skills. In 2026, leadership and analytics go hand in hand.
FAQ
How does data literacy impact employability?
Data literacy skills improve employability because employers value professionals who can make decisions based on data.
In a competitive market, candidates with digital skills stand out. Companies want leaders who can support a data-driven culture and improve operational efficiency.
Can business students develop data literacy without an IT background?
Yes. Data literacy is not limited to IT students. Business students can learn data analysis, data visualisation, and business analytics skills without becoming programmers. Building data literacy is about understanding and applying information, not coding.
Does REGENT Business School teach data literacy and analytics skills?
Yes. REGENT Business School analytics modules focus on practical skills. Students learn how to interpret data insights, apply analytics to real business problems, and make informed decision-making part of their leadership approach.
How long does it take to become data literate?
Basic data literacy skills can be developed within months through structured learning and practice. However, improving data literacy is an ongoing process. Continuous learning helps leaders stay relevant in a data-driven economy.
Study future-focussed business courses with REGENT
If you want to build strong data literacy for leaders, studying business management at REGENT Business School can help you prepare for 2026 and beyond.
Programmes integrate business analytics skills, strategic thinking, and digital skills for managers. Some of the key programmes that cover analytical skills include:
- Bachelor of Commerce
- Bachelor of Business Administration
- And several specialised courses like the BCom in Accounting
Also, through applied learning platforms like iLeadLab, students gain hands-on experience solving real business challenges using data.
With a practical approach to analytics and leadership development, REGENT equips graduates to thrive in a data-driven economy. If you’re ready to lead with confidence and make smarter, data-driven decisions, REGENT Business School can help you get there.
