There are many reasons that senior leadership at a company may have poor visibility into their business. In this post, we’ll discuss what we consider the primary reasons. Then, we’ll help you understand how to solve these problems to see real results in your business.
1. Lack Of Internal Communication
A foundational reason why executives have poor visibility into their business is because internal communication is lacking. Without communication, relationships - and businesses - die.
Financial performance has a strong link with effective communication, according to a 2013 report from the company now known as Willis Towers Watson. In fact, companies with highly effective communication “are three and a half times more likely to significantly outperform their industry peers” than other firms.
Companies can keep employees abreast of information through internal communications such as newsletters, of course, face-to-face interactions. The WTW report also found that effective companies both deployed and understood enterprise social tools to help build community. “The more employers use these tools,” the authors wrote, “the more adept they become at creating a community across their organization.”
Their recommendation was that the time, money, resources, and even courage involved in boosting internal communication was worth the effort to achieve visibility.
2. Risk Management
Another cause for poor visibility into one’s business is the lack of financial data. Without the ability to forecast resources, you assume more risk.
Part of the reason for this risk management is that companies don’t know their supply chain. Claims Journal reports that insurers are “in the dark” with regard to a policyholder’s suppliers. That means they can’t accurately assess the likelihood of a loss, leaving insurers “more exposed than they realize.”
In fact, the Business Continuity Institute says that just over half of organizations don’t insure whatsoever against supply chain disruption, with the top impacts being a loss of productivity, increased working costs, and customer complaints.
The BCI says that by accounting for these risks, organizations are eight times as likely to report greater supply chain visibility.
3. Not Implementing Business Intelligence Software
BI software automates much of what legacy systems were built for, not to mention the time-consuming task of counting and keeping track of individual files or compiling data and building charts. Plus, you can’t see real-time analytics without BI software.
Analyze information and make better decisions with business intelligence software.
4. Ignoring Analytics
A staggering 63 percent of organizations don’t use technology to analyze, track, or monitor their supply chain performance, reported the BCI.
That’s amazing considering Nucleus Research found that organizations who invest in analytics reap $13.01 from every dollar they spent in 2014. It’s hard to argue with that return on investment.
However, even the best data scientists in the world can’t kickstart or revive a company. McKinsey argues that the best indicator of success for an analytics program is commitment of company leadership. “It takes a C-suite perspective to help identify key business questions, foster collaboration across functions, align incentives, and insist that insights be used,” the authors state. “The CEO and other top executives must be able to clearly articulate [an analytics program’s] purpose and then translate it into action.”
If you’re interested in how analytics gleaned from business intelligence software can help mitigate risk and improve your line of sight in business, explore our software options today.