Does your company need a Data & Analytics team?
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
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Data and analytics skills are now core competencies for many Finance professionals. As we explored in the previous article in this series, the proliferation of data as a tool is one of the defining trends in modern business and in the management of society generally.?
Gathering, analyzing, and acting on data is a fundamental business process - indeed, for many companies (particularly those that are in some way tech-enabled) it is virtually impossible to imagine an operating model that does not rely on good data analytics.
The interface between Data & Analytics specialists and the Finance Function should be frictionless, but this is not yet the case in some businesses. Where Finance professionals may be used to dealing with 'traditional' metrics such as P&L, Data & Analytics introduces an unstoppable tide of new indices and data points that can be measured, analyzed, and acted upon.?
Better coordination and cooperation between these skill sets is an ongoing project, and in many organizations, the end goal may be to integrate the two completely.
What insights can we expect?
Gathering data is not particularly useful as a standalone activity. It only becomes useful through the generation of insights - that is, when data enables us to understand processes and organizations in new ways.
There are many ways in which this might manifest. Data-related insights can highlight deficiencies or resource sinks in sales, recruitment, product development, marketing, and virtually any other business activity. They can help us to better understand our customers and clients. They can help us fine-tune processes and measure the results. They can highlight new market opportunities and help businesses seize them efficiently.
How can we improve outcomes?
Data-derived insights enable us to make rational, quantifiable changes. They are the foundation of the build-measure-learn model, in which leaders can develop hypotheses that are tested and implemented in an iterative fashion. The 'agile' mentality relies heavily on the intelligent use of data.
But it's crucial to remember that this is always a cross-functional, multi-disciplinary activity. To generate better outcomes we need to disseminate insight amongst key stakeholders and incorporate their feedback in a constant loop. We might describe this as a process of two-way communication.
This is where business partnering is crucial. Data & Analytics, along with the Finance Function generally, can only reach their potential when their expertise is mediated through the holistic knowledge of a business partner. It falls to these professionals to translate data into insights, and then to disseminate insight in such a way as to produce better outcomes.
We firmly believe that the business partnering mindset is the future not only of the Finance Function but of many professional specialisms. When paired with data science competencies, business partnering skills can radically transform organizations.
To summarize, your company absolutely needs a Data & Analytics team. However, all we’re saying is that its efforts should be aligned with the work done in the Finance Function - and that this best happens when a strong business partnering mindset is present.
Does your company already have a Data & Analytics team? If so, what outcomes have they driven, and are they a part of the Finance Function or working as a separate team? Let us know in the comments how Data & Analytics is shaping up in your company.
This was the second article in my latest series Finance vs. Data & Analytics. You can read the previous article below.
While you await future articles why not read my latest series about ESG for finance professionals?
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You can read all the articles in another recent series about if finance professionals should learn to code below.
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Anders Liu-Lindberg?is the co-founder and a partner at the?Business Partnering Institute?and the owner of the largest?group dedicated to Finance Business Partnering?on LinkedIn with more than 10,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a?long-time Finance Blogger?on LinkedIn with 95,000+ followers and 160,000+ subscribers to my blog. I am also an advisory board member at?Born Capital?where I help identify and grow the next big thing in?#CFOTech. Finally, I'm a member of the board of directors at?PACE - Profitability Analytics Center of Excellence?where I support the development of new analytics frameworks that can improve profitability in companies around the world.
Operations Controller at Continental
2 年Thanks for sharing! Is there any course that you recommend? I am quite interested in getting those skills!
Mr. Positive Energy ?? - 8X International Bestselling Author| Helping Entrepreneurs Ignite their Career and Business Embracing Positivity! ?? | Love, Kindness, and Compassion for Global Impact??
2 年Wow! Amazing