CDOs Need These Three Ps for Success
- By CDOTrends editors
- April 26, 2023
Organizations increasingly rely on data and analytics (D&A) teams to make informed decisions, drive innovation, and create competitive advantages. The role of chief data and analytics officers (CDAOs) has become critical in managing and maximizing the value of these resources. However, a recent Gartner, Inc. survey reveals that only 44% of D&A leaders believe their teams effectively provide value to their organizations.
CDAOs must concentrate on three key areas: presence, persistence, and performance to achieve greater success and deliver measurable business results.
Donna Medeiros, a senior director analyst at Gartner, emphasizes the importance of driving stakeholder value through D&A, stating that “The most successful CDAOs are outperforming their peers by projecting an executive presence and building an agile and strategic D&A function that shapes data-driven business performance and operational excellence.”
The survey, conducted online between September and November 2022, included responses from 566 D&A leaders worldwide. Results show that successful CDAOs exhibit strong executive presence, with effective or very effective ratings across 17 leadership traits correlating to high organizational and team performance.
Alan Duncan, the distinguished vice president analyst at Gartner, notes, "Top-performing CDAOs invest in their success by developing skills to thrive in ambiguous circumstances, articulate compelling value stories and identify D&A products and services that can drive business impact.”
CDAOs face many responsibilities, such as defining and implementing D&A strategy, overseeing D&A governance, and managing data-driven culture change. With increased investment in data management, data governance, and advanced analytics, D&A functions are experiencing growing confidence and recognition as indispensable business components. However, Medeiros warns that this can lead to more work and pressure on D&A teams to achieve tangible business results.
A significant challenge facing D&A teams is the need for more talent, with 39% of respondents identifying it as a top impediment to success. To overcome this issue, CDAOs must develop robust talent management strategies encompassing education, training, and coaching for data-driven culture and data literacy within their teams and the wider business and technology communities.
To succeed, D&A performance must align with business strategy. The survey found that 78% of respondents consider corporate or organizational strategy and vision as crucial inputs to D&A strategy, with 68% prioritizing D&A initiatives based on alignment with strategic goals.
Duncan concludes, "CDAOs who prioritize strategy over tactics are the most successful. Because the CDAO serves multiple stakeholders across the business, they must align with organizational strategic priorities and focus on selling the D&A vision to the CEO, CIO, and CFO as key influencers.”