ILM by City & Guilds · 8725-523Optional unit

Unit 523: Data driven decision making

This unit explores how data underpins organisational decision-making in modern organisations. Learners will evaluate different data sources, analytical techniques and technologies used in decision support. The unit also considers ethical and legal considerations and data quality in a data driven culture.

In short

Unit 523 Data driven decision making is the largest optional Level 5 unit at 10 credits. It covers data-driven culture, legal and ethical responsibilities, and how data supports decisions, then requires you to source and evaluate real data, analyse it, present it using visualisation tools and justify your process.

Level

RQF Level 5

Credit value

10 credits

Guided learning

25 hrs

Assessment criteria

12 criteria

Learning outcomes and assessment criteria

To achieve unit 523 your portfolio must evidence every assessment criterion below. There is no exam and no written assignment — you demonstrate each criterion using evidence from your own work.

Learning outcome 1

Understand the role of data in organisational decision making

  • 1.1

    Describe the key characteristics of a data driven culture

  • 1.2

    Examine legal and ethical responsibilities in data management

    Evidence requirement: Evidence must include at least three examples.

  • 1.3

    Assess benefits of a data driven culture

  • 1.4

    Explain how data supports operational and strategic decision making

    What this covers: This could also include the consideration of social responsibility. Legal: Legal frameworks (data protection), UK GDPR key principles Ethical: Ethical handling (fairness, ownership, accountability, transparency, avoiding bias).

  • 1.5

    Examine how presentation of data can support decision making

    Evidence requirement: Evidence must include at least three visualisation tools.

    What this covers: Presentation: use of visualisation tools.

  • 1.6

    Examine the potential impacts of inaccurate and misinterpreted data

Learning outcome 2

Be able to source and access data for organisational use

  • 2.1

    Source internal and external data

    Evidence requirement: Evidence must include at least one example of use of both internal and external data.

    What this covers: Data can be quantitative or qualitative or a mixture of both.

  • 2.2

    Evaluate the quality of accessed data

    Evidence requirement: Evidence must include: • currency: The timeliness of the information • relevance: The importance of the information for own needs • authority: The source of the information and its credibility • accuracy: The reliability and correctness of the information • purpose: The reason the information exists and its intended audience.

  • 2.3

    Analyse the strengths and limitations of data for the intended purpose

    Evidence requirement: Analysis must include: • currency: The timeliness of the information • relevance: The importance of the information for own needs • authority: The source of the information and its credibility • accuracy: The reliability and correctness of the information • purpose: The reason the information exists and its intended audience. LO2 and LO3 must be the same work products.

Learning outcome 3

Be able to use data to support organisational decision making

  • 3.1

    Apply appropriate methods to analyse data

    What this covers: Data can be quantitative or qualitative or a mixture of both. Appropriate methods to analyse data could include but is not limited to: • quantitative data: calculating averages, percentages, identifying correlations, patterns and trends • qualitative data: coding responses, identifying themes, analysing content • tools: spreadsheet functions, data analytics software, coding frameworks, forecasting models.

  • 3.2

    Present data using visualisation tools

  • 3.3

    Justify the process used to produce data outcomes

    What this covers: Process: data sourcing, access, analysis and presentation.

How to approach unit 523

Written by our assessment team: what the criteria mean in practice, the evidence that works, and where learners get caught out.

What this unit is really about

Unit 523 carries 10 credits — more than any other unit in either qualification — which tells you the expected volume of work is substantial. It is worth choosing deliberately: on a Certificate or Diploma it can cover a large share of the credit requirement in one unit, but it is a poor choice for anyone without access to real organisational data.

The shape is: understand data's role (six criteria), source and evaluate data (three), then use it (three). The practical half needs internal and external data, an evaluation of its quality, an analysis of its strengths and limitations, real analysis, presentation using visualisation tools, and a justification of the process you used.

The evidence that works

Learning outcomeEvidence that works well
LO1 — role of dataThe characteristics of a data-driven culture, legal and ethical responsibilities in data management, an assessment of the benefits, how data supports operational and strategic decisions, how presentation supports decisions, and the impacts of inaccurate or misinterpreted data
LO2 — source and accessInternal and external data actually sourced, an evaluation of its quality, and an analysis of its strengths and limitations for your purpose
LO3 — use dataAnalysis with the methods stated, charts or dashboards produced with visualisation tools, and a justification of the process

Criterion 2.1 requires external data, which learners often skip. Free and credible UK sources: ONS statistics, Nomis labour market data, sector regulator publications, trade body benchmarks, Companies House filings for competitors, and local authority open data.

Data quality, evaluated rather than assumed

Criterion 2.2 asks you to evaluate the quality of the data you accessed, so use explicit dimensions: accuracy, completeness, timeliness, consistency, validity, uniqueness and relevance. Then apply them honestly — most real workplace data fails at least two. Duplicate customer records, a field that became optional in 2023, timestamps recorded in local time on some systems and UTC on others, a "reason code" that 60% of users leave as the default.

Reporting those flaws is not a weakness in your evidence; it is criterion 2.3. And it protects criterion 3.3, because your justification of the process should say what you did about them — excluding a period, cleaning duplicates, treating a field as indicative only.

Criterion 1.2 needs accuracy. For Great Britain that is the UK GDPR and the Data Protection Act 2018: a lawful basis for processing, purpose limitation, data minimisation, accuracy, storage limitation, security, and accountability. Add the points that bite in practice: special category data needs an additional condition, data subject access requests apply to anything you hold about identifiable staff, and using data collected for one purpose to make a different decision is exactly what purpose limitation restricts.

The ethical half goes beyond the law: whether people would expect their data to be used this way, proxy discrimination where a neutral variable stands in for a protected characteristic, the surveillance risk in productivity monitoring, and transparency where analysis affects individuals. If you use AI or automated tools, note your organisation's policy and the accountability question — the manager remains responsible for the decision.

Visualisation and the misinterpretation criterion

Criterion 3.2 requires visualisation tools — a spreadsheet's charting is acceptable, as are Power BI, Tableau or Looker Studio if you have them. Criterion 1.5 and 1.6 then pull in opposite directions and should be answered together: presentation aids decisions, and presentation misleads. Truncated axes, dual axes implying correlation, percentages on tiny bases, and averages hiding bimodal distributions are all worth naming — ideally with a real example of a chart in your organisation that misled someone, redrawn correctly.

Useful reading

Supporting information for unit 523

Unit aim: This unit explores how data underpins organisational decision-making in modern organisations. Learners will evaluate different data sources, analytical techniques and technologies used in decision support. The unit also considers ethical and legal considerations and data quality in a data driven culture.

Suggested learning resources: These suggestions are current at the time of publication. The following resources are provided as guidance only. Centres should select current and relevant resources and encourage learners in self-guided reading. Big Data in Practice: How 45 Successful Companies Used Big Data Analytics to Deliver Extraordinary Results – Marr, B. Chichester: Wiley (2016). Thinking Analytically: A Guide for Making Data-Driven Decisions – J Frost Oded Netzer on Decision Making With Data – Mind Tools, n.d. A Conversation with Professor Oded Netzer.

Evidencing this unit

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you.

  • Workplace documentation and records — team development plans, project implementation reports, meeting agendas and minutes, training materials
  • Video clips, up to a maximum of 15 minutes
  • Projects
  • Reflective accounts, journals and logs
  • Assessment observation
  • Witness testimonies

Where unit 523 counts

This unit sits in the ILM Level 5 Leadership and Management suite (8725) and counts towards the pathways below, from £695.

Frequently asked questions

How big is unit 523?

It is the largest unit in either qualification at 10 credits, so it can cover a substantial share of a Certificate or Diploma — but only choose it if you have real access to internal and external organisational data.

Where can I get external data for unit 523?

Free UK sources include ONS statistics, Nomis labour market data, sector regulator publications, trade body benchmarks, Companies House filings and local authority open data. Criterion 2.1 requires external as well as internal data.

Is unit 523 mandatory?

No. Unit 523 is an optional unit. You choose it as part of the rules of combination for your pathway, so pick it if your role gives you genuine evidence for it.

How is unit 523 assessed?

Assessment is a portfolio of evidence, centre-devised and internally set and marked. There are no exams and no written assignments.

What evidence can I use for unit 523?

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you. Workplace documents, projects, reflective accounts, observation records and witness testimonies are all valid sources.

Which qualifications include unit 523?

It counts towards the Level 5 Award, Level 5 Certificate, Level 5 Diploma, Level 5 Extended Diploma.