3 Reasons Why Two Skilled Analysts Reach Different Conclusions With The Same Data
DataGalaxy
Data management workplace & creator of the Data Knowledge Catalog ?? Data to the people!
Nowadays, businesses produce a ton of product, financial and operational data. And, they hire smart, talented data engineers, analysts, and scientists.
Despite that, business leaders are often baffled that two analysts can come up with two entirely different numbers and conclusions when analyzing the same business question.
Why does this happen when both analysts have access to the same data warehouse? What does it cost the business? And, can businesses do something about it?
Let’s take an example. Let’s say you’re the VP of Customer Success at a growth-stage company. And you’re interested in knowing the answer to the following question:
Has our ticket resolution time for the last year gotten better?
Easy, right?
Not really.
Why do our analysts reach different conclusions?
Reason #1: The question isn’t specific enough
One of the primary reasons for coming up with a different answer is that you started with a different question.
When the business question isn’t specific enough and the metric definitions aren’t standardized, each data person comes up with their own interpretation of the question.
In this example, one could interpret any/all of the following differently:
Reason #2: The data source isn’t obvious enough
Once you have an agreed-upon definition of the business question, you would think that you can get the same number from both analysts because they have access to the same data.
No, because they have access to a ton of seemingly similar data, and it’s hard to tell which one is the “right source”.
Searching for “tickets” in your data warehouse might return a hundred tables (or more). This happens for a multitude of reasons but here are some:
And, the reason it’s harder is that more often than not people don’t have the time to name their tables in a hyper-descriptive way. And, it’s understandable — each individual is solving their analytic use case and not actively solving for the data discoverability for the rest of the company.
Confusing table names aren’t the only challenge. Figuring out the right data source can also be a nightmare because of:
Reason #3: Their methods aren’t the same
Let’s say that we have an agreed-upon definition of the business question & metrics and that both analysts know how to determine “the right data source.”
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At this point, both analysts have the same number.
But they could still reach different conclusions!
Why? Because they could go down different data exploration journeys through different drill-downs. They could be assigning different weights to different characteristics and could be compared against different benchmarks. As a result, come up with different narratives.
One analyst can compare the?ticket resolution time?Year-over-Year and say that our ticket resolution time has gotten worse. Another might dig deeper and find that, generally,?ticket resolution?has gotten?much faster?but the average is been dragged down by a specific type of ticket because that support team is severely understaffed.
Neither analysts are wrong. But the different narratives could influence different business decisions. ??
Why does it matter?
Imagine that you’re in charge of making any of the following decisions:
All of these decisions involve significant money! ?? And, concluding an inaccurate or incomplete insight can cost your business!
Here’s how to prevent/reduce it…
1. Define & publicize the business glossary
The key to having a consistent interpretation of data questions is to?define?metrics/KPIs and business terms specifically and?socialize?universally.
For a successful glossary, we need to enable:
2. Make it easy to find the right data
Once we have an agreed-upon definition of the metrics, it is important to help analysts track down the data sources required to calculate those metrics and filter those data sources to the most valuable ones.
DataGalaxy’s “Share the data knowledge”?makes it easy for data consumers to find, select and understand data sources for metric calculations.
We do this with the help of:
3. Create a culture of curiosity and openness
The same data can tell different stories. Diverse perspectives help your business think critically and eliminate blind spots.
Two analysts using different methods to tell contrasting stories is not necessarily a bad thing.
Creating a safe space and atmosphere where smart people can approach analytical problems with curiosity and challenge each other is great for your organization.
AP Accountant at Cairo 3A Group
1 年I stumbled into this situation just few minutes ago and went searching thinking it was incompetency that drove my different results. Very insightful! Thank you!
Chief Evangelist | Thought Leader | LinkedIn Top Voice | Data Governance Kitchen | Data Knowledge Workplace | Cooking Chef
2 年Thanks for sharing! Speaking the same "data" language will reduce ambiguity and avoid such situations.