Data is undeniably useful when analysing performance, financial strength and customer satisfaction. However, there is such a thing as too much data.
A business data analyst is called upon to give quarterly reports and may be required to produce a raft of data for a company’s management to consider. As lovely as it may be to see every iota of data related to the business stacked up, a job well done; Is all the data presented going to inform or is the abundance likely to cause confusion?
Yes, the latter. Business data analysts need to report wisely.
If you have too many metrics – measurements – in play then it is highly likely that the recipients of the data will be unclear about what they are being told. This is problematic but it can easily and practically be resolved, simply by reducing the number of metrics to the ones which are of key importance to your company.
Is focus on financial or non-financial figures?
Is the board more interested in knowing the client attrition rate than the amount of staff in the office?
Does your management expect to learn if their growth target is viable or about the last quarters profitability?
Whilst business data analysts are bound by what the management and shareholders ask for in terms of data, guiding them to the most pertinent and illuminating information about the business’ health makes data easier to digest.
As many companies make the mistake of analysing any number of metrics, even above a hundred areas, there is a need to allow business data analysts to carry out their task with the optimum data provision. Time is valuable and shouldn’t be spent on data that cannot tell the board anything that they can take away and use. This is common sense; however, the theory has largely not been turned in to practice.
If you are unsure which data it is imperative to source and analyse then you needn’t work alone. Many companies seek professional assistance with their business data analysis and metrics.
Calling in assistance is not a sign of weakness, it delivers optimum reporting strength.
One of the leading business data analysts and business intelligence consultants in the south of England is Chris Scanlon. He is a qualified chartered accountant who works with Thames Valley Business Advisors to help enterprises with their data analysis, identify key data and weed out the interesting but not vital information.
He has over 25 years in blue chip industries and 15 years in owner managed businesses. He is eager to work with SME’s and for them to gain knowledge, understanding and better data analysis from his experience and skills.
Find the correct core metrics for your operation and the fog will lift. A clear and concise impression of the key indicators empowers everyone from management down to the apprentice.
Contact Chris or a fellow expert to enhance your view today.