Business value of a CDO
The role of a CEO is to improve the business they are running and hit the targets set by a board of directors; the scope of their work covers employees, operations, finances, customers, and more.
Within this context, a CDO should channel their energy into actions and programmes that leave measurable impacts on the business – particularly the business objectives. The art of storytelling is pivotal to demonstrating data’s addition to business value and this is most easily done through easy-to-see measurable impacts, such as improvements in efficiencies or faster return on investments.
Whatever a CDO does, when it comes to presenting their work and role to a CEO, they must demonstrate alignment with business objectives and evidence of the impact data has had on the development of the business.
Clear direction
It is near-impossible to plan for organisational success without a roadmap of the future with actionable aspirations – which is why CDOs need to be able to explain their short-, mid-, and long-term data direction to non-data professionals. There is a fine balance that needs to be struck between the aspirational and the achievable which will help push the data team to reach new heights without disheartening them.
It must be remembered that not every programme will be a success and not every target will be hit – this is part of business in the modern age – but there are plenty of opportunities for data leaders to highlight their skills and abilities within the context of business growth.
A CDO needs to explain to decision makers outside of the data team what the business will look like in the future, how it will operate and why this direction is the best one possible. This means working closely with other department leaders to better understand their department objectives and desires, which can be complemented by data.
Implementing innovative operations
In 2023 there was a rapid rise in the use of artificial intelligence (AI) technologies that have completely changed the way business operate – this is an example of an innovative tool that can be employed by data leaders to demonstrate data’s use in operations to CEOs.
A CDO must pragmatically and proactively examine the tools and technologies available to see where they can be used to improve business functions in different departments. It is easy for non-data professionals to get swept up in the hype surrounding new AI tools, but it is up to the CDO to explain why a steady and cautious approach must be taken (regulation, ethical use, costs, etc).
Data-led decision culture
A CEO is required to make decisions every day, and often these decisions can have large impacts on the trajectory of a business and the way it impacts team members, which is why a CDO must be able to demonstrate why a data-led decision-making process is essential.
Every CEO wants to make the smart choice and the right choice for their business, but sometimes it is incredibly difficult to see the impacts this will have on teams and individuals. Data supports the smart choices, and a strong data culture highlights the importance of data when it comes to making decisions. This is more achievable the higher the level of data literacy is in an organisation.
Team performance
The old saying is that a team is only as strong as its weakest link, which is true, and it is the role of the CDO to make sure those links are as strong as possible. From a CEO’s point of view, success comes about from talented and motivated team members, so it is imperative that a CDO demonstrates that this occurs in their team.
By recruiting new talent and developing the talent of existing members, CDOs can take their team to the next level. It is well known that there are longstanding issues when it comes to recruiting and retaining data talent, so this is a prime example of an opportunity for data leaders to show their ability to manage and evolve a team. Data leaders must source individuals with the skills and culture fit to grow the team and the wider business while managing its scalability to improve organisation-wide data literacy and data-led decision making.
The thing that all of these expectations from CEOs have in common is that they all require solid storytelling skills. A CDO must be able to demonstrate why following the data is good and how non-measurable aspects of data implementation are benefitting the organisation. Storytelling is a skill that evolves over time and can be improved through the use of different language and visualisation tools to ensure that non-data professionals can appreciate the need for data in their daily operations.
