Data direction from the top

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I am often asked by senior client contacts what is best practice for providing insight and creating an environment for success. Increasingly, my response is to look in the mirror – be the one who evangelises the data and analytics. Being committed, and demonstrating your belief in the value data brings, will start to unlock the power of analytics.

As an industry, we talk about the value of data and the power of the research that fuels data creation. Data-based analytics improve business decision-making and should be seen as an investment, not an overhead cost. The reality is that demonstrating the true value of research is a constant challenge that comes round during every organisation’s budget planning cycle. So why is there this recurring need to justify the investment in research data and supporting infrastructure given the benefits it can bring?

The answer lies in how data is valued by the organisation’s senior leadership. It is easy to say that data is important, that it sits at the heart of all business decisions, but it is very different to support that with actions and budget. When an organisation has a senior leader championing the importance of data and analytics it creates an environment where data is seen as a critical influence on a business. When this leadership is in place, there are consistent traits that we can recognise.

First, there is an explicit expectation that the data becomes part of the common language of the organisation. This creates a culture that requires employees across all parts of an organisation to both understand the data, and explain performance and decision-making through the data. With a consistency in data use, and ability to interpret the data, come faster decisions. Less time is required to explain what the data or the facts mean, and the focus shifts to getting into the real business of identifying what to do next.

This is crucial as there is always a department or individual that is a ‘heavy user’ of data, but it is when you see greater organisational reach of data that its value increases. To drive such an approach usually requires investment in data training and education, but also investment in ensuring there are tools that support the light or infrequent user to access the data easily and successfully. Data shouldn’t be pushed by a lone research manager or data officer against a tide of resistance, there should be a positive flow of data throughout the business, to willing recipients.

I’m currently working with Nomad Foods and it is a great example of a company using data in this way – from where to invest media budget effectively, to assessing mergers and acquisitions or how to approach NPD. Importantly, its culture of data-based decision-making is driven directly from the senior team.

When an organisation creates this basic level of data capability, the data flows through the business and fosters an environment where there is an increasing need for more sophisticated data analytics.

As companies move beyond the basics of using data for performance reporting to using it for strategic business decisions, bigger and more dynamic questions arise. This is when an agency, whether continuous or ad hoc, can add its value by clarifying the big questions, unlocking new analytic approaches and ensuring the data is delivering growth.

Creating a business environment to drive deeper analytics means being prepared to invest. This is where the budget is crucial and the transition from data being viewed as an overhead to an asset begins. Clearly, there is an onus on the industry to create efficiency through new technology and improved analytic approaches, and this needs to be done in partnership with those clients that will push for innovation in analytics.

Data will only truly come to life with senior sponsorship and then we really can see its true value.