iscover
Data can be a great way to evaluate business processes. However, there is an untapped advantage that can be far more useful in driving outcomes.
The benefits data brings to the table
“As the old adage goes, ‘what gets measured, gets managed’, and employee performance is no different. Without a comparative baseline and objective goals, there can be no fair or meaningful performance evaluation. Likewise, coaching and corrective actions must be pragmatic and effective in order to reliably impact performance,” Domo’s Asia-Pacific vice-president, Peter Steggall, said.
“Underpinning this effort, then, is the need for timely, accurate, and relevant measures of performance (aka data). Empirical evidence aside, the impact that quality data has on performance is the removal of emotion – this removes argument and debate while providing tangible paths to improvement. If all parties can agree to the integrity of the data, and the validity of its implications, then the performance “problem” is well on its way to resolution.”
Steggall recognises data as the foundation of constructive criticism, and the potential to drive business outcomes should be on every leader’s radar.
Further to improving processes, data can be an enabler of positive employee retention. Mapping trends and using the tangible evidence to adjust practices is a valuable advantage in improving employee retention.
“There are many factors that influence retention, many that are subjective. That said, data can be used to provide accurate benchmarking of rivals and the market in general. Credible benchmarks help to demystify competitive offers and can be used to demonstrate an organisation’s actual market positioning (versus perception). This same data allows the organisation to course correct if its employee value proposition has stagnated or the market has moved,” said Steggall.
“Data can also be used to quantify the tangible value of an employee’s total compensation. Familiarity breeds contempt, and employees may (inaccurately) perceive they are not being fairly compensated or that they have been ‘left behind’ [by] their external peers. Data can shine a spotlight on these claims and often dispel market rumours or hype. Likewise, data can often level the playing field between ‘hot’ industries like tech or banking, when compared to less glamourous roles in manufacturing and accounting.”
Be wary of silos
Despite the various advantages of integrating data into decision making, there are also some considerations that should be made, namely: data silos.
Steggall said: “Data silos occur where data sources are segregated from one another, causing data gaps, and increasing data integration efforts. Oftentimes, data silos may be well intentioned, or even necessary in the case of sensitive data; however, the net result for businesses is increased complexity, increased data management overheads, and (most problematically) incomplete or ineffective analytics.”
“As indicated, data silos may well be intentional – driven by regulatory obligations or security concerns. While cumbersome, these types of data silos are designed to protect organisations and their customers, and constitute a ‘necessary evil’ for data practitioners,” he said.
“Alternatively, data silos are also often the result of organisational dynamics and lax data management practices. All businesses experience constant change, and it’s incumbent upon the organisation to manage its data like the valuable asset that it is. Too often, data degrades, and data silos form organically over time – as above, this diminished the value of the data and causes real headaches when trying to resolve. Often, programs focusing on data literacy and governance are required in order to correct this systemic behaviour.”
Challenges of the future
For organisations looking to utilise data to drive business outcomes, there are some challenges that are expected to be somewhat of a roadblock for leaders. According to Steggall, the most prevalent challenges of the next 12–18 months are:
- New technologies: The most obvious is the rise of artificial intelligence and the expectation of businesses to “take advantage” of this new capability. Following the initial hype around AI, the next year will demand more diligence in terms of business impact and return on investment (ROI) versus trials and experimentation to date.
- Data quality: Data’s strategic importance will continue to be underscored by the necessity for absolute data integrity and comprehensive governance. While not new, this responsibility will see increased focus, especially in terms of efficiency and cost control.
- Security: Cementing data’s position as a critical corporate asset, security will continue to become ever more important. As ongoing data breaches have painfully exposed, data security is not negotiable and must be treated as a mission-critical capability.
Jack Campbell
Jack is the editor at HR Leader.
