The Chief Data Officer – a CEO’s Secret Weapon?

Byron Tarboton, Managing Director – Technology Practice, BIE

Any successful CEO will tell you that business development is rarely linear; the most effective leaders are constantly adapting to meet the needs of their customers, markets and stakeholders. As the philosopher Heraclitus once said, the only real constant in life is change.

But it seems change is not just a constant in business, it’s actually on the up – with 82% of senior leaders predicting the rate and scale of change will increase over the next five years.

Transformation programmes can rise or fall on the quality and integrity of an organisation’s data, according to our research. So with this in mind, smart CEOs should be prioritising data management and setting robust strategies in place which enable them to adapt at pace.

The rise of the Chief Data Officer 

The importance of high-quality data in transformation programmes is often overlooked, but it is critical for the success of any initiative – a third of senior leaders in BIE’s recent transformational leadership report said their biggest challenge was data integrity. 

While many understand the challenge, few CEOs know where to start when it comes to managing data or improving its quality. This is why more CEOs are turning to interim data experts or are investing in permanent Chief Data Officers (CDO) or Chief Analytics Officers (CAO) to own the data strategy and prepare the business for change. 

Data management has traditionally been overseen by the CIO or CTO, but its growing importance means it is now transitioning into a strategic leadership role with its own place on the board, reporting directly to the CEO. This provides a greater opportunity for the CDO to impact how data is viewed, managed and used through the business, as the role now has more influence and is respected across the board. From board-level, the CDO can also play a key role in any transformation programme, by predicting potential issues and helping to drive quicker and more successful transformation.

Identifying the right talent for your business

With talent shortages still posing a challenge for many CEOs, finding the right person to lead their data and technology strategy is critical. Each CEO will have different needs and requirements so there is no one-size-fits-all approach. Often it will depend on the current mindset of the CEO and wider executive committee. 

For a CEO who is apprehensive about introducing new technologies or has an executive committee that requires more education on its value, then sourcing highly experienced interim talent is likely the right strategy. The value of an interim lies in their ability to hit the ground running and translate the technicalities of the business case for change within a short period of time, due to the shorter nature of interim placements. The specific remit and time pressure that comes with an interim hire can often focus minds at a senior level and give the project a level of attention it needs to achieve success quickly.

A permanent hire on the other hand should  still bring the necessary skills to implement new technologies and shift the board’s mindset from fearing new technology to being optimistic and opportunistic. But they should combine these immediate priorities with a longer-term vision and a strategy which focusses on stability and growth.  

Supporting your new CDO 

While more CEOs are bringing data leaders into their organisations, it is crucial that these leaders are provided with the resources needed to succeed and are empowered to drive change across the business. In order to operate effectively, the CDO needs to build trust across the executive committee. The CEO will play a key role in supporting the CDO to do this, providing them with opportunities to demonstrate value, for example, by delivering smaller use cases. 

Once the executive committee is invested, it becomes much easier to educate the wider workforce on the need for improved data and new technologies, and to equip them with the skills needed to adapt to change effectively, setting the CDO and the organisation up for success. 

Avoiding being left behind 

With more organisations now enjoying the increased agility and visibility that comes with having a CDO on the board, senior leaders should adopt an opportunistic outlook if they’re to avoid being left behind by competitors due to outdated and inefficient technology and data processes. 

That said, the CEO must invest the time to find the correct talent to lead this important function, and then support them moving forward to give their organisation the best opportunity for growth. 

After all, the right CDO could be their secret weapon in the increasingly competitive, and ever-changing, race for success.