LEADING AT THE SPEED OF DATA

INTRODUCTION

Being a CEO has never been tougher in the age of real-time data and a hyperconnected world. No more daily reports, sales briefings or gut decisions. Business information is ubiquitous and shifts at speed. Smart decisions on fast data can make or break a business, but where does this leave the modern CEO? Always-on, a data junkie, and always able to make smarter plays. A new level of pressure, but a new dimension of business gains are there for the taking.

Every good CEO knows that their role is to not get bogged down in the operational weeds of a business, but to create space for thinking, strategy and curiosity. And this is where the speed of data is bringing about a new paradigm. Just how can one stop worrying about data and start trusting systems to help steer the entire business day-to-day?

It’s remarkable to think that enterprise data was very different not so long ago. It was static, ordered and fixed in time. Teams would spend days or weeks collecting it into spreadsheets, or presentations with tables and the occasional graph. Data was treated like a museum collection, captured and pinned down to be inspected at length in endless meetings.

Not any more. The modern enterprise is bursting with data. It’s alive and available in real-time, fast-flowing streams - ready to be harnessed to inform every decision. But many organisations haven’t been able to adapt their behaviour and people to this rapid change. They are still operating with yesterday’s systems and approaches.

As the CEO, you are the best - and only - person who can transform your business to be more creative and innovative with data. How can you free up time and give yourself space to spark curiosity and explore new ideas? How can you lead by example and model the behaviour that you want to see from the rest of your organisation?

This report is designed to give you fast and actionable insights into the way other CEOs are responding to the opportunities and threats of the data-driven enterprise.

Discover what it means to lead at the speed of data, and help the rest of your organisation to follow your lead.

Ian TickleSVP and General Manager for Domo EMEA

ABOUT THE RESEARCH

To understand how CEOs are dealing with the volume and importance of data in their organisation, we worked with global research house Censuswide to poll the opinions of business leaders across France, Germany and the United Kingdom & Ireland.

Conducted in July 2018, a total of 306 CEOs, from organisations of all sizes and over 13 different sectors were surveyed. Each market was given equal weighting, and the figures in this report are the combined data from all countries, unless otherwise stated.

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THE EMEA OVERVIEW

The UK and IrelandData driven decisions

• 17% of CEOs prefer to make decision based on gut feeling rather than data and insight. (25% in France and 26% in Germany).

• Data tends to be older. 26% of CEOs use weekly data, compared to just 15% in Germany and 9% in France.

• Improving that is key. Investment in systems to manage data and analytics will be the primary focus for 26% of CEOs. 16% will focus on digital skills training.

FranceWorking remotely, direct access

• 55% of CEOs prefer to hot desk, compared to 31% in the UK and Ireland, and 17% in Germany.

• 42% of CEOs have access to data directly. It is just 29% in the UK and Ireland.

• Almost half of CEOs are most likely to review business data when presented in a meeting. That drops to 35% across the UK and Ireland and Germany.

GermanyLeaders driving change, but less confident

• 51% of CEOs believe it is their responsibility to connect and manage insights across the business. It is 42% and 43% respectively among CEOS in France and the UK and Ireland.

• 14% of CEOs feel their understanding of business data isn’t good, compared to 2% in France.

• Just 65% believe that data could be a threat to the future of their business, versus 80% of French CEOs.

• focus for 26% of CEOs. 16% will focus on digital skills training.

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THE DATA AGEOrganisational data has always flowed through the enterprise. But the major change over the last two decades, with the emergence of the computer age and then internet-connected devices, is that the volume of available data has risen massively whilst the cost of collection and storage has plummeted.

Data is information that can be used to make decisions. But the challenge is to judiciously choose what data to use, and then how a business can match the speed of its decision making to the speed that new data is being generated. For those that get the right balance, it creates more time to focus on growing the business, but for those that don’t, data can be a source of constant confusion and concern.

The research shows that there are different behaviours and attitudes between different generations of CEOs, as younger CEOs aged 24-44 tend to see data differently to their older peers.

This chapter will look at differences in attitudes and behaviours between these groups. It will look for ways that older CEOs can learn from emerging trends, as well as ways that younger CEOs might adapt to their more experienced peers.

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A NEW WAY OF WORKING

Much of this can be attributed to preferred ways of working. Overall, half of CEOs prefer to access data and analytics on a desktop, which peaks at 64 percent among leaders age 45-54. Older CEOs use mobile less. This is another contrast with younger CEOs where nearly a quarter (24 percent) aged 25-34 prefer to use their phone or tablet.

The trend towards mobile is likely to become the new norm as technology continues to develop and mobile plays an integral role for both professionals and consumers. A recent report from Business Matters found that more than two thirds of the workforce in the UK believe they could run a business using only a smartphone. The preference and understanding of the capabilities are clear, but the the software may be lagging behind.

Attitudes to data vary greatly depending on the experience and age of the CEO. Younger CEOs (25-44) tend to be ‘always on’, harnessing the power of their data around the clock, while older CEOs (45+) prefer to wait until they are in the office and at their desk.

arrow-circle-right FIG. 1: CEOS ACCESSING AND REVIEWING DATA AS SOON AS THEY WAKE UP OR LAST THING BEFORE BED

25-34 35-44 45-54 55+

10%

5%

20%

15%

25%

30%

0%

First thing Before bed

1/2Of CEOs prefer to access data and analytics on a desktop

24%Of CEOs aged 25-34 prefer to use their phone or tablet

Younger CEOs (25-44) tend to be ‘always on’, harnessing the power of their data around the clock.

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CONFIDENCE, BUT IS IT MISPLACED? Over 90 percent of CEOs believe they have a good understanding of business data. But despite this, only 60 percent claim to have access to analytics directly and 33 percent have access to data in real-time.

Real-time data has become key to keeping pace with consumers and changing trends. The value is that it reflects changes as they happen, allowing businesses to be agile, but it clearly remains underused among CEOs.

Confidence is notably higher among younger CEOs, who have grown up in the digital era and will likely have had much greater exposure to data and the tools to manage it. 60 percent of CEOs aged 25-34 believe their understanding of data is very good, compared to only 35 percent of CEOs over 55.

arrow-circle-right FIG. 2: CEOS BY AGE, SHOWING HOW CONFIDENT THEY ARE WITH DATA ACCESS

35%

70%

0%Very good Good Average

25-34 35-44 45-54 55+

What is also clear is that any lack of digital understanding at the top is felt throughout the workforce. A 2018 Deloitte report concluded that when to comes to digital transformation, an employee’s main expectation is for business leaders to provide clear direction, vision and purpose. Data leadership comes from the top.

28%Of CEOs primarily access data which is more than one week old

Across all demographics the lack of access to real-time data is a concern. The majority of CEOs believe they have a good understanding of data from across their business but for 48 percent that data is, at best, 24 hours old. For 28 percent, it is more than one week old, which is a major lag.

It echoes one of the key findings from McKinsey’s latest Age of Analytics Report, which is that most companies are capturing only a fraction of the potential value from data. Static reports and traditional BI tools are no longer fit for purpose in a new age of analytics, as instead AI can be a live part of the business, driving proactive alerts that teams can then act on. There is a missing link when it comes to data use, and a rose tint on the way CEOs view analytics.

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IS DATA A THREAT?

TRUSTING A GUT

The confidence CEOs have in their understanding of data also contradicts how many believe data could put their business at risk. 71 percent believe their organisation’s current ability to access and understand data could be a threat to its future, suggesting they see a major skills gap on the horizon. See fig. 3 arrow-circle-right

Those concerns vary greatly across different demographics. 78 percent of CEOs aged 25-34 believe their organisation’s use of data could be a major risk to its future, compared to 52 percent of over 55s. Data, and the pace of change, is clearly a much more significant consideration for emerging leaders.

According to a joint report from Deloitte and IBM, just 12 percent of business executives across all sectors feel graduates have the necessary digital skills to join their organisation. 16 percent believe their teams can deliver on the company’s digital strategy.

Choosing between data and instinct isn’t clear cut for today’s CEOs, especially younger demographics.

Overall, 74 percent of all CEOs prefer to use data and insight to inform their decisions, but 32 percent of CEOs aged 25-34 said they still rely on gut feeling. That figure drops to just 21 percent of CEOs aged 35-44 and 16 percent for those over 45.

It seems that while the next generation may on balance be more technologically savvy, they remain more impulsive than their more experienced counterparts.

arrow-circle-right FIG. 3: CEOS BY AGE, SHOWING HOW MANY BELIEVE DATA COULD BE A THREAT TO THEIR BUSINESS

10%

20%

30%

40%

50%

0%

Yes Maybe No

The counter argument to this is that younger CEOs, who are more likely to be ‘always on’ and check business data around the clock, are in fact making informed decisions they only believe to be instinctive. Discussing different ways of decision making, a leading behavioral scientist, Valerie van Mulukom found that analytic thinking and intuitive thinking can be almost impossible to separate in the context of data.

Instinct is the result of a series of analytical decisions, and if data is providing the analytics in the first place, it could in fact be data-driven.

25-34 35-44 45-54 55+

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THE DATA BURDENS AND OPPORTUNITIES OF BIG BUSINESS As the organisation grows, the potential and demands of data increase exponentially. Our research looked at the size of organisation that each CEO was in charge of, and there are important differences with large businesses and enterprises.

Larger companies with more than 250 employees face greater complexity in managing their data than small and medium sized businesses. The enterprise is more likely to make the process of accessing data more time consuming. As the number of constituents increases, the amount of time spent meeting about data follows the same path.

This chapter will look in more detail at how data use varies depending on the size of the organisation. It will also look at ways that time and energy could be saved to reduce the impact, especially within the enterprise and large businesses.

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8%Of leaders believe their current business model would remain economically viable if their industry keeps digitising at its current course and speed

SYSTEMS AND SILOS

The bigger the business, the greater the strain on the CEOs time. 71 percent of CEOs at large organisations spend more than six hours per week in meetings, compared to 55 percent at medium firms and just 30 percent at small businesses. Overall meetings can represent as much as 72 percent of a CEO’s time, according to researchers at Harvard Business School. It leaves little or no time to explore and understand the workings of the business.

It reflects a broader trend that the importance of data, and how it is shared, varies greatly depending on the size of the organisation. Within large organisations, data has become a free-for-all. Just 39 percent of large businesses have one central system in place, compared to just under half (47 percent) of small firms.

That figure may seem surprisingly high, but what can be said for certain is that bigger businesses are less agile because of their size and scale, which in turn means more time in meetings discussing the data.

For small firms there tends to be one centralised system for sharing data and analytics from across the business. In medium sized businesses there remains one central system, but with a greater mixture of departmental data.

The lack of a centralised data source is symptomatic of the issues weighing down bigger business. Technology and tools aren’t consistent across teams, meaning data is held in departmental silos and the business is slower to respond to change. Even among the third of large organisations that do claim to have a central source, there is still a major challenge in getting the data out of the system and into practice across the business.

Being able to keep pace is critical. A recent McKinsey study on digitisation found that only 8 percent of leaders believe their current business model would remain economically viable if their industry keeps digitising at its current course and speed. For larger firms in particular, the effective use of data is incompatible with traditional economic, strategic and operating models.

72%Of CEOs time can be spent in meetings

39%Of organisations have one central data system

The lack of a centralised data source is symptomatic of the issues weighing down bigger business.

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REPORTING IN

DEPARTMENTS LEADING BY EXAMPLE

As with meetings, the time spent compiling reports reflects the size of the organisation. Large businesses spend more resource reporting on key metrics and performance indicators. 52 percent allocate more than a fifth of their working hours or headcount to reporting. See fig. 4 arrow-circle-right

There is a broad split, but also an overarching trend. The challenge of reporting, and the admin that comes with it, is a burden for big business and one any growing organisation will encounter.

Across businesses of all sizes, CEOs consider IT departments to be most effective at sharing business data and information. 53 percent ranked IT in their top three internal teams for communicating data, closely followed by Accounting and Finance for 44 percent.

Ranking departments is a reliable litmus test to see how tools and processes are working, as well as adoption rates on technology. But the trail is easy to follow. IT tends to own the technology systems while transparency is key on finance and the bottom line.

At the other end of the scale, only 27 percent of CEOs consider their supply chain and production team to be effective at sharing data. It suggests a much bigger gap between warehouse and head office, and again reflects the responsibilities of a CEO. Supply chain is more important for operations managers and others in the business’ management.

arrow-circle-right FIG. 4: CEOS BY SIZE OF ORGANISATION, SHOWING AMOUNT OF TIME SPENT COMPILING REPORTS

arrow-circle-right FIG. 5: DEPARTMENTS CEOS BELIEVE TO BE BEST AT SHARING BUSINESS DATA AND INFORMATION

43.8

52.9

41.2

30.4

27.1

6.2

0%

Up to 10%

Tim

e sp

ent

Percentage of businesses

11-20% 21-40% 41-50% Over 50%

15% 30%

I.T.

HR management

Accounting and finance

Production and supply chain

No team shares data most effectively

Sales and marketing

15%

30%

45%

60%

0%

Small Medium Large

45% 60%

Contrasting this lack of visibility with the 90 percent of CEOs who believe they have a good understanding and access to data, it again reinforces the notion that CEOs believe they have a firmer grasp on business data than they really do. What is clear, is that any gaps in the way data is managed or shared is unsustainable for today’s organisations.

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LEADING FROM THE FRONT Beyond current challenges and successes, how do CEOs see the use and application of data changing in the future? We asked them where they plan to invest time and resources in the coming years to take advantage of data within their strategy and operations to continue to compete, and create more time for their own curiosity.

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DATA MANAGEMENT MEANS INVESTMENTCEOs consider only their workforce to be more valuable than data from their business. Both are deemed more important than the business’ reputation, intellectual property and plant, property and equipment. See fig. 6 arrow-circle-right

Key to this is the way data is now live and able to connect all of the assets in any business. CEOs worry that data could be a threat to their organisation, but data can be readily used to track and manage reputation. Especially in cases such as the supply chain crisis that hit fast food chain KFC in 2018. It ran out of chicken after an issue with a third party supplier.

Rather than seeing it as a tool, data should now be considered as an employee. A live body that can add value both creatively and through proactive alerts, something that is reinforced by CEOs’ investment priorities. Over the next five years 21 percent said they will invest most in systems to help manage the wealth of data and analytics. Second only to cyber security and compliance. See fig. 7 arrow-circle-right

It’s clear that investment in technology, and a workforce that is able to maximise that technology, is a major focus for the modern CEO. But the greatest challenge lies in how they put those priorities into action. Those that wait five years will undoubtedly miss out on opportunities for growth.

arrow-circle-right FIG. 7 CEOS INVESTMENT PRIORITIES OVER OVER THE NEXT FIVE YEARS

arrow-circle-right FIG. 6: VALUE CEOS PLACE ON DIFFERENT ASSETS FROM ACROSS THEIR BUSINESS

Plant, property and equipment

Intellectual property

The business reputation

Data (sales figures, customer insight, supply chain etc)

The business workforce

0% 25% 50% 75% 100%

Very valuable Not valuable at allSomewhat valuable Not that valuable

Cyber security and compliance

Systems to help manage the wealth of data and analytics

Digital skills training for existing employees

Recruiting new employees with a strong digital skill set

None of the above

10%

20%

40%

30%

0%

21%Of CEOs will invest most in systems to help manage the wealth of data and analytics

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DRIVING DATA CHANGE

For 45 percent of CEOs, they believe it is their role to connect and manage data across teams. They expect to lead from the top, while a further 25 percent feel it is the responsibility of the IT department, or if they have one, a Chief Technology Officer.

That varies depending on the size of the business. 31 percent of CEOs at firms with between 1,000 and 10,000 staff say it is their personal responsibility to manage business data, compared to 48 percent of CEOs with up to 1,000 employees. CEOs at smaller firms are much more likely to be involved with every aspect of their business, and less likely to have a large IT support team.

But even if the IT department does own the systems that make data accessible across the business, it needs to be driven by business needs. Leadership needs to come from the

top, and that responsibility means the CEO can sometimes be seen as a barrier. In the 2018 Digital Transformation Index, 35 percent of business’ across the US and Western Europe said their CEO is the biggest obstacle to digital transformation.

There is also a disconnect between the C-Suite and middle managers. Deloitte reported that 59 percent of CEOs believe they are pushing digital decision making down, but only a third of vice president and director-level respondents report that it is happening. Teams need to have confidence and knowledge needs to be effectively shared for businesses to move forward. And CEOs need to be the driver for both the strategy and technology adoption.

REAL TIME, ACCESSIBLE AND ON MOBILEBusinesses recognise they need to do things differently. Just 14 percent of CEOs believe there is nothing they would change about the way their organisation uses data and insights. For the rest, there are a broad range of changes on their wish list.

25 percent want key data from across their business to be available in real-time, aiding timely decision making and allowing them to keep pace with customers and KPIs. Close behind, is simplifying the way data is presented.See fig. 8 arrow-circle-right

Simplification is important, as in a world of constant alerts and notifications it is a challenge to cut through the noise. Being data driven is key, but so is finding the most important, useful metrics to turn into action.

arrow-circle-right FIG. 8: WHAT CEOS WOULD CHANGE ABOUT THEIR BUSINESS’ USE OF DATA AND INSIGHTS

Make key data available in real-time

Have data readily available on mobile devices

25.5

22.5

20.3

18.0

13.7

0% 5% 10% 15% 20% 25% 30%

Simplify the way data is presented

None of these

Have key data shared across everyone in the business

It can save significant time and resource. In traditional businesses, much of the data shared among teams is presented in meetings, with 53 percent of CEOs spending between 6-15 hours per week in the meeting room. In the UK alone unnecessary meetings are estimated to cost businesses £191 billion each year.

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TELEPORTATION, INVISIBILITY AND FREEZING TIMEGiven the chance, most CEOs would make some unconventional changes to their daily routine. 29 percent wish they could freeze time in order to get more done each day, while 28 percent dream of teleportation, to save time travelling.

Invisibility would be the superpower of choice for 20 percent, allowing them to work without being disturbed and move within their business unseen. Over 15 percent would create a clone to sit in on meetings they don’t want to attend.

It might seem like fun, but why are those findings important? It is because the end goal can already be achieved with data. Data can’t give them superpowers, but it can ensure that businesses and teams are more efficient. Having access to data on the move through mobile devices can make lengthy meetings obsolete and allow CEOs to use their time more efficiently.

Instead of invisibility, data can offer full visibility. Having a system across the business can provide insights and understanding otherwise only accessible by being on the ground. It can allow them to learn and recognise where better decisions can be made in future.

28.8%The ability to freeze time, and get more

done each day

The ability to teleport instantly, cutting out time spent travelling

27.8%

Invisibility, so you could move within the business and

observe, or not be disturbed when you

need to get things done

19.3%

A body double that could cover meetings and events you don’t

want to attend

15.4%

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REFERENCES

Business Matters (July 2018) Over Half of UK Adults Think They Could Run a Business With Just Their Smartphone

MIT Sloan Management Review (June 2018) Coming of Age Digitally

McKinsey Analytics (December 2016) The Age of Analytics

Ignite Digital (January 2018) Digital Skills Gap Infographic

The Conversation (May 2018) Is it Rational to Trust Your Gut Feelings?

Harvard Business Review (July 2018) How CEOs Manage Time

McKinsey & Company (January 2018) Why Digital Strategies Fail

Forbes (April 2018) The State of Digital Business Transformation 2018

McKinsey & Company (August 2017) When To Shift Your Digital Strategy Into a Higher Gear

Futurum (July 2018) The 2018 Digital Transformation Index

FM World (February 2018) Unnecceesary Meetings Cost £191bn a year

Forbes (April 2016) Big Data Overload: Why Most Companies Can’t Deal With The Data Explosion

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