“The factor perhaps most determinant of success with an analytical strategy is the degree of engagement from the executive ranks.”
This quote from the recent Aberdeen Group report Executive’s Guide to Effective Analytics (http://bit.ly/1e7nZFH) sums up one of the key drivers to an effective credit union analytics effort.
Organizational change sometimes can grow from a “bottom up” effort. Indeed, analytics champions frequently arise from functional areas within the enterprise. However, unless the credit union C-Suite understands, believes in, and pushes the analytics agenda, such initiatives have little chance of succeeding.
The Aberdeen report concludes with three recommendations that cannot realistically be adopted without senior management sponsorship:
Adopt a formal data strategy
Effective BI/Analytics efforts structure information from across the credit union. A clear vision and strong drive from the top is the only thing that will unite diverse information sources into a single location to provide a reliable and accessible data foundation.
Prioritize KPI management
An essential prerequisite to effective analytics is measuring the right things. Senior management is responsible for developing the credit union’s strategy and a big part of that responsibility is identifying Key Performance Indicators (KPIs). These metrics “map” to strategy and become the centerpiece of the analytics initiative.
Be flexible in delivering analytics
Just as the data needs to be structured as an asset for the entire credit union organization, the toolsets for visualizing this information resource must also be standardized. However, one size does not necessarily fit all. Different functional areas and different organizational levels will differ in the ways they visualize and analyze information. Senior managers must insist on a variety of standard options so decision makers at all levels can make the best possible use of the unified data.