Suppose you have followed my suggestion in my previous post where I presented the different levels of Analytics usage that any company can find themselves in: Impaired, Localized, Coordinated, Company-wide, and Competitive.
First, let’s put out again the definition of Analytics that we’re discussing here:
Analytics is the effort to discover and communicate useful patterns within data
You are now aware of the potential power of analyzed data. Here are 5 requirements that will help you to evaluate your existing reports to get them in shape for the next level of Analytics
#1 Reports Must Be Worth The Cost
Measure the time it takes to compile and generate a report. If the time is significant, calculate how much are you paying out of the company’s revenue for the resource to generate that report.
If the time is not significant, measure how long does it take to update the report the next time it’s needed. Add the two measurements together then calculate the cost as the above.
If both measurements added are still insignificant, than you have one of those “magic” report, whose benefits may need to be re-evaluated.
Do you have a budget for company-wide reporting? If the answer is no, it’s time to rethink the way your company does reporting.
#2 Reports Must Be Timely
A truly useful report must be up-to-date when the report consumer needs it. Sounds obvious, doesn’t it?
Unfortunately a lot of truly useful reports must be compiled from multiple data sources. Generating an always up-to-date report is manageable for one source. But how about four? Six?
Each of these sources usually has it’s own timing of when is the best time to retrieve the data, also if you have 5 data sources (example: 3 spreadsheets, and 2 databases), most likely you also have multiple ways to reliably retrieve it.
Without some kind of automation, how many hours of human resource must be dedicated to this?
#3 Reports Must Be Role-Sensitive
A single set of data may be processed and analyzed in many different ways. Before generating a report for a particular role within the company, be it the CEO, Managers, or even a Field Operator, it is prudent to “walk a mile in that person’s shoes.”
If done correctly, each of the role in the company will have their own specific reports that can truly help the person in the role to see more of what is happening and to anticipate and adapt to changes.
Bonus point if you have a screen for the person in the role to input changes in policies/regulations and process, so those can be used to tailor the updates of the said reports. Hint: You need a well designed Data Warehouse to accomplish this.
#4 Reports Must Be Digestible
What do you call a 23 Excel spreadsheets per day reporting? Some may call it impressive, productive, or “Wow!”
But the receiver of these reports call it “useless.” Being the receiver of a mountain of non-aggregated, indigestible data does not make someone productive. It makes the person look for an EXIT sign.
Producing a lot of reports must result in an equally significant increase in visibility and decision-making quality and speed. To do this, reports (or even better: Dashboards) need to be consolidated at the appropriate level.
Does your company have a process in place for this?
#5 Reports Must Have A Purpose
Reports that are truly useful have names, which indicate their sole purpose in life. Here are a few examples:
- Bad Profits -report (Truthfully, I’d be impressed if you currently have this report always available to you as a business owner or CEO)
- Unnecessary, Untracked, Unknown Expenses -report
- High Maintenance, Low Revenue Customers -report
- High Revenue, About-To-Leave Customers -report
- Financial “Leaks-Busting” -report
- Low Productivity Team -report
- Fuel Consumption On Billable Vehicles or Machines -report
- Where Is The Industry Going and How About Us -report
- Time To Renegotiate Vendor Contracts -report
In your next Management Meeting, ask your executives and managers to come up with the list similar to the above. And compare it with your existing reports, if many of the reports don’t have a name and don’t serve a singular, clear, actionable purpose, question their existence.
Be ruthless, life is too short for useless reports.
We make new reports or tweak existing ones to meet the 5 requirements above. Our clients love truly useful reports that we compile and generate for them because through those reports, they see not only what is going on, but also where to go next.
In summary, we save our client’s money and increase their company-wide efficiency by:
- Replacing expensive human resources with automated electronic “minions” (computer programs).
So what happened to the human resource? They are now happier (because they don’t do tedious tasks better suited for computers anyway) and they contribute more significantly by doing tasks that is fit for human brains: Analytics.
- Using our highly tuned and constantly improved DataWarehouse platform that can serve multiple companies at the same time. Or if you like exclusivity, we’ll clone one just for yours.
- Design, and consolidate numerous and diverse data sources into one readable Dashboard. Yes it could be done, and No, it’s not as easy as it looks.
We invite you to contact us if your company is ready to make your data work harder for you.