Can Big Data Nerds Speak Business?

Big Data, Data Scientists, Advanced Analytics etc. All buzzwords that companies are trying to turn into gold these days. The potential is certainly there but tapping into it is not easy especially if you think if you just start an advanced analytics team by hiring a few data scientists that can start working with all your data. The real key to unlocking the potential is the ability to translate the findings from the analysis to business actions. Someone has to turn the complicated analysis done by advanced algorithms into simple actions that can drive business outcomes. For that, you need a translator. 

Let the specialists specialize 

I’ve previously written about advanced analytics and how many companies have ventured into this area lately in the post “The “CAO” And The Analytics Analyst” and last week we discussed how Big Data Needs Big Data Scientists. However, all the fancy analysis in the world will not make a difference for a company unless someone can translate the findings into actions. The question is whether the Big Data Scientists can speak business themselves or need translators to do so. In order to translate the findings into actions, you need someone who’s able to make the complex simple and possesses above average communication and persuasion skills. That doesn’t sound like a data scientists to me and although I might be biased not being such a scientist myself I think it’s important that the data scientists focus on utilizing their core skills i.e. finding trends and patterns in large data sets. If you want them to develop what I term translator skills they would risk losing their edge in advanced analytics as the field is undergoing rapid development and needs full attention for them to stay up to date. 

Enter the finance generalist 

It shouldn’t come as a surprise to you that I think what the advanced analytics team needs is a finance business partner that can help them translate the analysis into actions. In case you wonder what a finance business partner is you can read this post “What Finance Business Partnering Really Is”. The finance business partner is rapidly becoming the generalist of the finance function. This person will be able to take any finance report, quickly analyze its conclusions and then partner with the business to agree on appropriate actions. The finance business partner can also partner the other way i.e. towards the more specialized finance teams such as the advanced analytics team, a tax team, the accounting team etc. This enables the finance business partner to become a one-stop-shop for other business functions into the finance function. You could call this person the key client manager of finance. I have described the core skills of a finance business partner in this post “The Skills Of A Finance Business Partner” and are distinctly different from most other finance positions. Having a team of finance business partners will allow the rest of the finance function to specialize within their particular area with the expectation of only having to communicate their findings to finance business partners who understand complex financial concepts and know how to turn them into simple messages to the business. 

Very few can be both specialists and generalists 

The dynamics between specialists and generalists in the finance function will become a competitive advantage for those functions that manage to do it well. It requires a clear strategy and the acceptance that each position in the function has a specific functionality meaning that not all positions should try and help the business directly to create better results. There are very few people whether in Finance or any other business function that can be both a great specialist and a great generalist. While they can be found you would most likely end up paying a significant premium for them and the competition will be fierce. Hence, even you hire someone it’s unlikely you can keep them for long. So it makes sense to make a more clear division of responsibilities and not ask your employees to be Jack of All Trades. That would make for average employees at best in most areas and unless you have exceptional leaders then average people will deliver average results meaning that the business won’t get the first class support from the finance function it deserves. It’s your choice but to me, it’s a clear choice with the finance business partner playing a crucial role as the key client manager for the business. 

How do you think Finance should divide the responsibilities? As a data scientist would you want to interact with the business or prefer to talk to likeminded people? As always let me know what you think of the post by liking, commenting and sharing. I always appreciate a good discussion!

For past post in my series on how the CFO should transform Finance, you can continue reading below and further below there are more posts about finance business partnering.

The CFOs Roadmap To Transforming Finance

How To Fix Your Basic Finance Function

Finance Systems For The 21st Century

Big Data Needs Big Data Scientists 

I also encourage you to take a tour of my old posts on finance transformation and not least “Introducing The Finance Transformation Nine Box” which is really that starting point for the transformation. Last but not least, you should join my Finance Business Partner Forum where we will continue to discuss this topic.

Financial Analyst vs. Finance Business Partner

You’re A Finance Business Partner, Now What?

Case Study: Becoming A Finance Business Partner

Why We Need Business Partnering Transformation

How Finance Can Help When Business Is Bad

How Finance Can Become An Analytics Powerhouse

How Finance Business Partners Improve Company Performance

There Is A New Kind Of CFO Needed In Town

Anders Liu-Lindberg is the Senior Finance Business Partner for Maersk Line North Europe and is working with the transformation of Finance and business on a daily basis. Anders has participated in several transformation processes amongst others helping Maersk Drilling to go Beyond Budgeting and transformed a finance team from Bean-counters to Business Partners. He would love the chance to collaborate with you on your own transformation processes to help you stay out of disruption. If you are looking for more advice on how to get the most of LinkedIn Anders also has a few tips to share as well as if you want help in your job search. Don’t be shy! Let’s get in touch and start helping each other.