Children make the greatest data analysts

Thom Naylor, Managing Director of Excellent Solutions, is back to discuss how data can answer your questions

The fact that you have returned to this blog implies that you have, at least, a modicum of interest in the idea that data could help you to plot the future path of your business – so let’s run with that principle. If you have ever interacted with data in any way you will know the drill;
1.    Someone more senior than you asks you a question to which you don’t have an immediate answer (if you own your own small company then that conversation could be more of a soliloquy).
2.    You go away and think about it – head scratching is optional at this stage.
3.    You find some data that addresses the question.
4.    You draw a pretty graph and return to the aforementioned ‘senior’ with THE answer.

Well, yes and no. What you actually return with is AN answer – and sadly, all too often, this will probably suffice. The ‘senior’ is placated and your job is done but, then what happens? Nothing or not much.

Imagine the real life scenario; The ‘senior’ asks, “what were our sales like last year?” Think; head scratch; data; pretty graph; answer – the data shows that Q1 and Q2 were pretty poor but Q3 was 200% ahead of target and, with a solid Q4, we just beat our annual target by 7%. Quite often, in the business cycle, this is where the story ends but actually, all we have done is relate a previous chapter in the history of our business – we haven’t written the next chapter.

Now imagine that your boss is a small child (for those of you with small children this extension of the conversation will be all too familiar).
CHILD/BOSS - 200% over forecast in Q3 – really? Why?
And so the cycle of thinking, head scratching and data analysis should begin again;
YOU – The data shows that our sales quadrupled in Germany.
CHILD/BOSS – Why?
YOU – The data shows that there were three products that sold far better than normal.
CHILD/BOSS – Why?
This is followed by several iterations of answers from you followed by the dreaded “Why?” from the CHILD/BOSS until eventually…….
YOU – Arrrrrgh, stop asking why. I don’t know why.

And that is where data will, often, gracefully bow out because, if you are looking for AN answer then data is incredibly powerful but, if you are looking for THE answer then, more often than not, it lies in the inherent knowledge and understanding that you and your team have about your business and industry.

How disappointing, I hear you say, I thought you were going to tell me how data holds all the answers to all my business conundrums. Well, alas no! Data, and the discipline of interrogating and interpreting it, will not always give you the answers, but it should always get you ASKING ALL THE RIGHT QUESTIONS and then the rest is up to you.

And that is the most simple, yet vital, lesson that I have ever learnt about working with data – always be inquisitive. It is only by continually asking the why, what and how questions that you will eventually get to the nuggets of insight that can really start to set your company apart from others in terms of management information and business performance.

For more information please visit the Excellent Solutions website. 

You can also catch up on Thom's last blog, Making date sexy.

If you want to contribute to the Chamber blog, contact us on hannah@brightonchamber.co.uk