Fail Fast, Learn Faster: Lessons in Data-Driven Leadership in an Age of Disruption, Big Data, and AI by Randy Bean

Author:Randy Bean [Bean, Randy]
Language: eng
Format: epub
Tags: Business & Economics, Organizational Development, Development, Business Development, Management, Leadership, Consulting, computers, Data Science, General
ISBN: 9781119806233
Google: NoA_EAAAQBAJ
Publisher: John Wiley & Sons
Published: 2021-08-25T00:03:56.625523+00:00

Rethinking the Role of Chief Data Officer

It should come as no surprise that chief data officers faced a backlash in some quarters during the past decade as more than a few organizations have called into question the proper role of the CDO and as CDOs often struggled to have a business impact. Firms understandably asked critical questions, such as what should be the optimal role and responsibilities of the CDO, where should the position report, what should be the CDO mandate, and what characteristics are most essential to ensuring an impactful CDO function within a complex organization. As organizations have matured their data capabilities and practices, the CDO function has continued to evolve.

While only 12% of executives reported that their firm had appointed a chief data officer when NewVantage Partners first conducted its executive survey in 2012, there has been a sharp and steady increase in adoption of this new C-executive role over the course of the past several years. The chief data officer has become an established role within many leading corporations. A decade later, more than half of leading corporations – 65% – have appointed a CDO,6 although only a third of firms report that the role is successful and well-established. Success remains a work in progress for CDOs, as organizations work to evolve the optimal organizational structures to manage a highly dynamic asset.

A 2019 Forbes article, “Rethinking the Role of Chief Data Officer,”7 describes the persistent challenges organizations are facing in optimizing and deriving value from the CDO role. The article cites recent surveys that reflect a lack of consensus regarding expected CDO responsibilities, noting that a common CDO job description is made more complex by the reality that companies are at very different stages of technological and data maturity where, as a result, one size does not fit all organizations. For example, 44% of companies view a successful CDO as being an external change agent and outsider to their firm, while 23% are looking for a company veteran or insider who knows the organization and culture to fill the role.

One critical factor shaping the mandate and mission of the CDO is whether an organization is positioning the CDO to ensure a strong defensive posture or is focusing the CDO on data-driven business innovation, as discussed in a 2016 Deloitte report, “The Evolving Role of the CDO in Financial Services.”8 The report highlights the CDO challenge as well as the opportunity as its subtext – “from marshal and steward to business strategist.”

The disparity between ambitious aspirations – operating as a “business strategist” – versus the current state (“marshal and steward”) is reflected in the Deloitte survey findings. There has been a steady progression toward an offensive, revenue-generating focus that has accelerated within the past few years – NewVantage Partners reports that the percentage of CDOs focusing on revenue-generating activities has increased from 54% in 2020 to 70% in 2021. However, just 13.6% of CDOs have assumed direct revenue responsibility thus far, suggesting that evolving into a true business generation role will take some time.

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