Do Your Metrics Support Your Corporate Strategy?

Marianne Zilic

Monday, June 15, 2015

There is no shortage of data available to most corporations today.  In fact, corporations are either drowning in data or simply not bothering to use available data.  Many senior executives prefer the old methods of forecasting and setting strategy: taking a look at historical financials and markets and estimating achievable targets for the next year or two.

However, with the advent of 'Big Data', companies, particularly large multinationals, are relying more and more on predictive analytics to spot trends, reduce costs and chart direction.  However, while data is more readily available than ever, and while there is more demand for people and software to mine, organize and use data, the issue remains: what data is useful and what is not?  All data is not created equal.

The usefulness of data is tied to the current strategy.  What are the corporate objectives?  What strategies are in place to achieve goals?  If the metrics currently in place are not properly aligned with objectives, then the strategies designed to achieve objectives will derail.

Quite simply, data is only as good as it is useful.  What's worse than useless data?  Data that drives decision-making in the wrong direction!