Do CEOs Need Dashboards?
In today’s world, data reigns supreme, yet many companies are falling short of being able to deliver expected returns on their data assets. According to a recent Harvard Business Review executive survey, less than 40% of companies are truly managing their data as an asset, DOWN from 47% just three years ago. With the increase in digitization due to the pandemic and shifting business models combined with increases in technology infrastructure investment, how can we turn this around? CEO Dashboards.
Every click, transaction, and interaction generates invaluable information that, when harnessed effectively, can steer a company toward greater success. For CEOs, navigating this complex terrain becomes a strategic necessity, making data-driven dashboards an essential tool for every CEO.
Data: The Modern Currency
Data is not merely a byproduct of business operations; it is the modern currency driving innovation and growth. Whether it is customer behavior patterns, market trends, or operational insights, data offers a panoramic view of a company’s ecosystem. However, the challenge lies not in collecting data but in transforming it into actionable insights.
The CEO’s North Star: The Dashboard
Enter the dashboard—a CEO’s command center for data-driven decision-making. A well-designed dashboard consolidates complex data streams into digestible, visually compelling insights. It offers a real-time pulse of the company’s health, allowing leaders to make informed decisions swiftly.
So, Why Does Every CEO Need a Dashboard?
1. CLARITY AMIDST COMPLEXITY
CEOs are bombarded with information from various departments. A dashboard simplifies this complexity, offering a consolidated snapshot of critical metrics—revenue, customer acquisition costs, inventory levels, and more—streamlining the decision-making processes.
Revenue dashboards typically show trends over time by product, category, customer segment, region, sales representative, etc., but drill-down capabilities can easily augment these insights when designed with strategic intent. By looking at the change in product mix or region, for example, we can further understand the value of that revenue by adding in the impact on gross margin. Are we growing our business in the right areas? With our increase in revenue, what is our expected margin impact? What is the expected impact on costs? Are these more expensive products or markets to produce and ship to? Are we able to continue to meet the demand at these levels? By drilling into the next-level insights, the CEO and his or her team can understand the impact of future decision-making.
2. REAL-TIME INSIGHTS
Time is of the essence in business. Waiting for quarterly reports or manually collating data can be detrimental. A dashboard provides real-time insights, empowering CEOs to spot trends, anticipate challenges, and capitalize on emerging opportunities.
In looking at revenue mix trends from the example above, a CEO may see sales of a product starting to trend up significantly, which is great news and exciting when looking at just the revenue impact. However, as the CEO toggles over to the next level of insights around inventory, he or she sees that this product SKU has a dwindling inventory with no replenishment on order. In the same view, the CEO can see several SKUs whose inventory has been aging out while new orders are about to be delivered to the warehouse. As a result, they and their CMO can immediately switch up marketing campaigns on Facebook & Instagram to drive sales to other categories to avert inventory issues and dissatisfied customers.
3. ALIGN STRATEGY WITH DATA
Gone are the days of gut-driven decisions. CEOs armed with data-driven insights can align company strategies with market demands and customer preferences. This alignment not only minimizes risks but also maximizes growth opportunities.
Reviewing the revenue dashboard, the CEO wants to see if the initiative around increasing secondary purchase behavior and lifetime value (LTV) shows signs of success. The CEO drills into the customer revenue dashboard and sees that LTV is rising. However, further review of the additional insights shows that the uptick in LTV is driven by activity related to the loyalty program rather than the email marketing campaigns as intended. The CEO and CMO can now come up with a solution to shift the strategy to meet the desired objective.
But, the most essential reason why CEOs need dashboards…
4. TO CULTIVATE A DATA-DRIVEN CULTURE
When CEOs champion data-driven decision-making, it permeates throughout the organization. A dashboard is a powerful symbol, fostering a culture that values data, encourages analysis, and supports informed decision-making at every level.
With the CEO having access to these dashboards and their deeper-level insights, the company will start to talk about and adopt data-driven decision-making as part of its culture. In the same survey by HBR, as mentioned earlier, 80% of leaders identified cultural impediments, not technology, as the most significant barrier to becoming data-driven. CEOs need to be the drivers of a data-driven culture. It starts at the top.
The Road Ahead
In an era where data is ubiquitous, harnessing its power is paramount. CEOs leveraging a well-crafted dashboard can navigate complexities, anticipate market shifts, and make informed decisions with their teams, steering their companies toward success while leading the organization’s culture around data.
Embracing data-driven decision-making is not just an option—it is a necessity for CEOs looking to thrive in today’s dynamic business landscape. A dashboard isn’t just a tool; it’s a compass guiding leaders toward their business objectives, ensuring they stay ahead in an ever-evolving market and bringing their organization with them.
Investing in a robust dashboard isn’t just about adopting a trend; it is about embracing a mindset that prioritizes data-driven insights as the cornerstone of effective decision-making. This is what we do.
