Putting Data Scientists in C-Suite: The rapid growth of the data science industry has resulted in the demand for talent exceeding supply. The Chief Data Officer (CDO) role has gained lots of publicity and traction lately, especially within highly regulated industries such as Financial Services, Healthcare, Insurance and the Public Sector.
Many industry publications have labeled CDO as the sexiest role in the industry. If that is true, then why are CDOs leaving in large numbers? Is it by personal choice, for better opportunities or for lack of appreciation and support. It compelled me to write this post, to shed some light on the role and the challenges CDOs face, in trying to stay relevant within the C-suite and add value to their respective organizations.
In order to understand why some CDOs are thriving, while others are barely surviving or are leaving their jobs, one must focus on four fundamental factors - value proposition, clarity of role, reporting structure and sponsorship from the top.
Unclear CDO Value Proposition: Appreciation for and clear understanding of the strategic value of data and data management at all levels of the organization, especially at the top tiers.
Sub-optimal Reporting Structure: Does the CDO function belong in the Business or the Technology domain? and was s/he reporting into the right organization?
Lack of Clarity of the Role: Many organizations lack a clear definition of the CDO's role and responsibilities vis-a-vis the CIO and CTO roles.
Lack of Sponsorship and Support: Managing and governing data across organizational silos is a demanding and complex task. Was the CDO provided top level cover, sponsorship, support and adequate budget, to scale the organization and build a strong team of data management experts that could drive change across the organization? Was there an appreciation for the hard work that went in?
What are our recommendations to tackle the above?
As organizations adopt the cloud and outsource development and support via internal and external shared services groups, there's an opportunity for them to rationalize the C-Suite and potentially convert the CIO role into the CDO role, to shift the focus from infrastructure and technology to data management, data governance and analytics. The CTO role should continue to focus on technology and R&D
Business organizations must take ownership for corporate data, its governance and become its custodians. This is a prerequisite for the success of the role
The CDO should report into the business organization (CFO, CRO, COO, CEO, etc.) with a dotted line to the Board (e.g. Audit Committee etc.),
The CDO role should be a peer of the CIO/CTO roles, so that they can stay objective and independent from the technology function - with respect to decision making and addressing data-related issues. Each of these roles has dependencies on the other, hence very close coordination and cooperation is required between them, to successfully execute against corporate goals.
The CDO must be given a substantial budget and Board-level support, to be able to scale the organization and deliver against the key data management priorities, especially those related to data governance, analytics, risk management, and regulatory compliance.
The CDO role is a critical one and can transform an organization and drive tremendous value. However, the success or failure of a CDO isn't necessarily tied to just the capability of the person in the seat, but there are additional organizational factors that influence a CDOs tenure and effectiveness.
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