“Your data team closed 500 tickets last quarter? That’s great. But what did it actually do for your business?”
This provocative question often leads to uncomfortable silence among data folks.
Why? Because most data teams are stuck measuring their success through outputs instead of outcomes. They’re tracking the number of dashboards created, analyses completed, and stakeholder requests served – but missing the bigger picture of actual business impact.
I was no different for many years.
Let’s change that conversation.
Ask a data leader about their team’s performance, and you’ll hear metrics like:
While these metrics can serve as leading indicators, they share a fatal flaw: they measure activity, not impact. It’s like judging a restaurant by how many ingredients it uses rather than the quality of its meals.
I faced this problem for many years during my 17 years in the data space: Every 3 months, when we’d discuss new goals or OKRs (objectives and key results) for the next quarter - I struggled.
I always thought: “Sales and marketing have it so easy.” Their impact on the business is so direct: Sign more customers, increase conversion rates, reduce customer acquisition costs.
Easy peasy lemon-squeezy. 🍋
Determining OKRs for the data team - not so much.
Over time, I developed this framework to make “business value” created by the data team more measurable.
It really helps to prevent sleepless nights ahead of these OKR meetings.
Business value boils down to one thing: evidence-able positive effects on company performance.
For data teams, there are five concrete paths to creating this value:
1 | Increase in a company’s revenue, growth, or market share
Note that I’m talking about direct revenue generation here. Not indirectly helping business teams make more $$$ - that comes later
2 | Decrease in a company’s cost
→ Automating manual reporting processes
→ Implementing LLM-powered content generation
→ Saving man hours in customer service through AI automation
3 | Enhancement of a company’s reputation or brand
4| Strengthening of relationships between critical organizational stakeholders → Making investors happy with punctual, high-quality reporting
→ Creating seamless data sharing with critical vendors or banks
→ Building trust through reliable, timely insights
5 | Increase in organizational knowledge and capability of achieving organizational goals
As opposed to the first point, these are indirect ways how a data team can make a company more $$$.
Here’s where many data teams stumble: they try to run before they can walk.
Your team’s objectives must align with your organization’s data maturity stage.
I like to use my Control Agility Framework for that.
“Reduce Customer Churn by X through a predictive modelling algorithm.”
Or:
“Increase Cross-Sell Revenue by X through building a recommendation engine”.
This rarely works without the necessary fundamentals.
Teams in these stages are usually better off defining goals such as:
“Reduce bugs reported by stakeholders to 0”.
Or:
“Have critical reports available at 9am on 90% of days.”
Want to start shifting your team from outputs to outcomes?
Begin with these steps:
But remember: this is just the beginning. The journey from output-focused to outcome-driven requires a complete mindset shift, new frameworks, and proven methodologies.
If you want to dive deeper into this, I recommend checking out my masterclass “Create more business impact with your data team” here .
Cheers,
Sebastian
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