Data that is well understood and analysed can be a game changer.  Knowing how we are doing vs competitors.  Understanding how sales of a category or competitor move across the year.  Monitoring customer opinions and behaviour.  It’s all good.

But data can be dangerous.  It’s often misunderstood and misapplied.  With serious consequences.  The retailer which thought price wasn’t a problem, forgetting that their satisfaction survey didn’t include shoppers who had left them because of price. The many companies in the last twenty years who misread their position in the market by focussing too much on scanning data that excluded Discounters (the most important dynamic in the market).  The companies right now who rarely look at Amazon or key parts of foodservice.

There are probably measures used in your company, that are not correctly understood by your decision makers.

So what can you do to make sure that you manage this risk?

First, give voice to your data experts.  You will likely have people who fully understand the ins and outs of your measures and analysis techniques.  They may already be uncomfortable about how data is being interpreted by leaders.  Ask them.  They may need reassurance because it can be scary to speak up about a measure or insight that has become a “sacred cow.”

Second, expect your decision makers themselves to have detailed knowledge of the data and analysis methods.  It shouldn’t be acceptable to leave it to the data experts.  Years ago, big FMCG and Retailer companies invested heavily in training their people, including excellent graduate programs. So senior leaders were developed, with excellent data and analysis knowledge.  P&G and Unilever being leading examples.  I suspect there is less resource for training across our industry now, given cost pressures.  But by setting the right expectations, and with some baseline training, you can get you leaders where you need them to be.

Third, challenge your data.  Don’t lay down before the numbers and let them make the decisions.  Look at several data sources to check for consistency.  If you find differences, work out why.  If you can’t work out why, don’t let it slide.

Listen to what you hear outside the work bubble, talking to friends or family.  If they see a problem with what your company does, but your internal measures remain stubbornly positive, something is probably wrong with the data.

Test the data against your intuition and experience.  If there’s a clash, you may be onto an insight that transforms your understanding.  Just as likely, the data or analysis is flawed.  Keep asking questions until you are satisfied.

Data is good.  But it can be bad.  Make sure your company understands it, challenges it, and keeps it in its proper place.

​Jeremy Garlick is a Partner of Insight Traction, consulting with FMCG and Retail companies. He was formerly Head of Insight at Sainsbury’s, Waitrose and Premier Foods.

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