Big Data, Data Scientists, Advanced Analytics etc. All buzzwords that companies are trying to turn into gold these days. The potential is certainly there but tapping into it is not easy especially if you think if you just start an advanced analytics team by hiring a few data scientists that can start working with all your data. The real key to unlocking the potential is the ability to translate the findings from the analysis to business actions. Someone has to turn the complicated analysis done by advanced algorithms into simple actions that can drive business outcomes. For that, you need a translator.
Let the specialists specialize
I’ve previously written about advanced analytics and how many companies have ventured into this area lately in the post “The “CAO” And The Analytics Analyst”. However, all the fancy analysis in the world will not make a difference for a company unless someone can translate the findings into actions. The question is whether the data scientists should do this themselves or need translators to do so. In order to translate the findings into actions, you need someone who’s able to make the complex simple and possesses above average communication and persuasion skills. That doesn’t sound like a data scientists to me and although I might be biased not being such scientist myself I think it’s important that the data scientists focus on utilizing their core skills i.e. findings trends and patterns in large data sets. If you want them to develop what I term translator skills they would
Enter the finance generalist
It shouldn’t come as a surprise to you that I think what the advanced analytics team needs is a finance business partner that can help them translate the analysis into actions. In case, you wonder what a finance business partner is you can read this post “What Finance Business Partnering Really Is”. The finance business partner is rapidly becoming the generalist of the finance function. This person will be able to take any finance report, quickly analyze its conclusions and then partner with the business to agree on appropriate actions. The finance business partner can also partner the other way i.e. towards the more specialized finance teams such as the advanced analytics team, a tax team, the
Very few can be both specialists and generalists
The dynamic between specialists and generalists in the finance function will become a competitive advantage for those functions that manage to do it well. It requires a clear strategy and the acceptance that each position in the function has a specific functionality meaning that not all positions should try and help the business directly to create better results. There are very few people whether in Finance or any other business function that can be both a great specialist and a great generalist. While they can be found you would most like end up paying a significant premium for them and the competition will be fierce. Hence, even you hire some it’s unlikely you can keep them for long. So it makes sense to make a more clear division of responsibilities and don’t ask your employees to be the Jack of All Trades. This will likely lead to your people being average in most areas and unless you have exceptional leaders then average people will deliver average results meaning that the business won’t get the first class support from the finance function it deserves. It’s your choice but to me, it’s a clear choice with the finance business partner playing a crucial role as the key client manager for the business.
How do you think Finance should divide the responsibilities? As a data scientist would you want to interact with the business or prefer to talk to likeminded people?