Scratch the surface and there is very little about the link to performance management and instead, the data management market is much more about data lineage, cleansing, distribution, lakes and so forth.
Organisations that are serious about data are serious about removing any barriers to the successful use and management of data. For example: Microsoft, Apple, Facebook, Goldman Sachs, and Accenture, have all made significant changes to their performance management systems to enable data to inform decisions.
So let’s look for the five warning signs in the performance management system that spells disaster for a CDO.
Without an understanding of the value of data, the CDO has no tool to compare data’s importance with other assets or initiatives. This leaves the CDO in the same place where many CMOs (Chief Marketing Officer) were a few years ago.
CDOs cannot quantify the benefit of the efforts they are undertaking and have to deal with anecdotes rather than facts. It is quite sad that many of the reference works on data management still extoll the virtues of storytelling as CDO … moreover, very little about the active role of value steward.
2. The CDO has no seat at the capital committee
You have often heard me ask the question, what if data is your most valuable asset? If data was indeed one of your most valuable assets would you not start to skew investment towards making that asset grow in value?
3. The improvement in the value of data is not in the executive team’s scorecard
Data either is a strategic asset or it isn’t; if it is not at least on the scorecard for your exec leadership team, you are misleading yourself. You know the stat of the 50% of CDOs that fail…
4. Data value is not in the business unit budget
When the business unit targets are set, and there is no explicit budget allocation for data management and measured improvement in results because of data, the business units will invite you along to do the odd presentation to emphasise the importance of data; you might even crack the odd invite to join the dinners afterwards… however, nothing will change.
Get data management outcomes in the budget if you want to survive for more than a year.
5. The CDO has no seat in the business review meetings
This is pretty self-explanatory… the CDO is seen as an admin cog, not a business decision-maker.
As you seek to mature your use of data, ask yourself how well we are positioned to convert data into performance information and how well do we use this information to guide strategic decisions. Unless you complete this transition you’ll find limited value in your data.