Strategies for accurate Data Evaluation in business

Have you ever been in a meeting where the first half is spent discussing who has the correct figures/ business metrics? What a waste of everybody’s time! In your business, making informed decisions requires accurate and reliable data. However, when multiple stakeholders provide conflicting data, it can be challenging to determine whose figures are correct. In this blog, we’ll explore some strategies for accurate data evaluation in business.

Let’s start by looking at a scenario between a sales team and a finance team. The sales team have a set of numbers based on their CRM software. The finance team have another set based on what’s in their orders system. Both have prepared their arguments based on an analysis of their own numbers. They both know that once they have accepted that their numbers are incorrect, their analysis of the situation is immediately undermined. Hence you have wasted the first half of the meeting disputing the numbers. Generally, the outcome is to agree to disagree, or to agree to investigate why the numbers are so different. Either way, it doesn’t result in a productive and successful meeting.

Contrary to popular belief, there are ways of removing this problem in your business.

HOW TO FIGURE OUT THE CORRECT FIGURES

START WITH THE SOURCE

When evaluating conflicting data, start by examining the source of the data. Are there any potential biases or incentives that might influence the data? If so, work appropriately to solve the issue at the source.

CHECK FOR CONSISTENCY

Evaluate the consistency of the data. Do the figures align with historical trends or industry benchmarks? If not, it may be worth investigating further to identify potential errors.

EVALUATE THE METHODOLOGY

When assessing the accuracy of data, it’s essential to consider the methodology used to collect and analyse it. How do all the teams involved work? What are the similarities and differences between each methodology?

COMMUNICATE AND COLLABORATE

Ultimately, the most effective way to resolve conflicting data is through communication and collaboration. Encourage your stakeholders to share their data and insights openly and work together to identify the most accurate figures. By fostering a culture of transparency and collaboration, your business can make more informed decisions and improve overall performance.

YOUR DATA – SILOED SYSTEMS AND DATA WAREHOUSES

Many businesses struggle with silos of data. Different departments have their own support systems which may or may not be fully integrated into the wider IT infrastructure. The idea of consolidated Data platforms is not new, but for many businesses as they grow and mature – issues of data increasingly come to the forefront.

Today, there are cloud-based data warehouse technologies, easy to use ETL tools, agile approaches, and tried and tested techniques such as Data Vault and off-the-shelf analytics software, which make implementing modern data platforms less daunting or expensive than it’s assumed to be. Once the data is in the data warehouse, not only can you start to have consistency, but you can also then start using business analysis tools to gain insights that were never available in the siloed systems.

SUMMARY

In summary, we shouldn’t be arguing about who has the correct data. The discussion should have moved on to “do I have the right interpretation of that data?”. Even better, “what are we going to do about the insights we are getting from our data?”.

Evaluating conflicting data in a business context can be challenging, but it’s essential for making informed decisions. By following these strategies for evaluating data, businesses can identify the most accurate figures and improve overall performance.