Establishing a common set of data parameters that your organization follows seems like it should be simple, but the truth is that every group needs their own view of the data. Consider a simple concept like “Total Monthly Sales.” If I’m speaking from a sales group perspective, I’m referring to all the business my sales organization closed in the time period I’m reporting for. If, on the other hand, I’m asking the group controller, his definition is going to reflect all closed business that has been booked to the ledger.
Hence, at month end, when the CEO is trying to review how the organization is doing against the stated goals, the answer he gets for “Total Monthly Sales” will be different based on whom he asks. The detrimental effect of alternate views is the inconsistency of data across the organization. Departmental management makes operational decisions based on what they perceive is the truth, and corporate management makes strategic decisions based on these perceptions. If the data is not the same, it is easy to see how operational decisions can conflict or adversely affect the strategic corporate goals.Read More