4 Reasons Companies Suffer Death By Data – RizePoint

by | Oct 23, 2015

RizePoint Business Intelligence

Many companies dedicate a lot of time and resources collecting large amounts of data, but unfortunately allow it to go into a black hole. Data capturing should be utilized to drive positive change. Otherwise, why do it?

Here are four possible reasons why ineffective data capturing occurs, and ideas  on how to avoid the pitfalls.

  1. Collecting too much data. A company can only use so much information so they need to prioritize and collect only data that they intend to use. I’ve seen operational excellence forms that contain hundreds of questions. After doing a deep dive with the VP of operations, we determined that more than 25 percent of the questions were not important — and that no one was even looking at the results. So this company removed those questions, which produced a feedback report far more meaningful. Those responsible for taking action were less overwhelmed and saw more value in what they were acting on.
  2. No culture of follow-up. There’s no buy-in at the C-level that taking action is critical. C-level executives must set the example and take action after receiving high-level business intelligence information. If the leaders don’t take action, no one else will. Everyone will assume “no one cares.” It’s much easier for a C-level exec to take action if they have detailed, enterprise-level dashboards and reports to base decisions on. As you can imagine, a CEO or COO doesn’t have time to sort through volumes of data. Customized dashboards help them get the key information they need in real time.
  3. No rewards or incentives to encourage follow-up. And/or there are no repercussions if the follow-up doesn’t happen. In other words, no one is held accountable. Many times I’ve asked managers the question, “What happens if a location has repeat critical violations?” I often get a blank look or they say, “Ummmmmmmm… I’m not sure,” or “Nothing happens.” Nothing happens? Really? If a restaurant manager knows that “nothing will happen” if he or she doesn’t follow up, then guess what — this manager typically doesn’t follow up. At some point there has to be repercussions if critical violations are not addressed. For example, if a franchisee “fails” an inspection they may be required to foot the bill for a re-inspection. On the flip side, a rewards or incentive program for those who do follow up in a timely manner can really drive improvement. But the incentive doesn’t necessarily have to be monetary. Companies can get creative on how they reward managers who have strong track records of follow-up.
  4. The systems for capturing data are antiquated. Outdated data-capturing methods or systems don’t allow for easy action. These methods include using a pen and paper or an electronic spreadsheet, which are less than user friendly. Just last month I was talking to a contact at a restaurant chain that had a location actually shut down by the health department. I recommended that they implement a self-inspection program to encourage managers to be more proactive. They shared with me that managers are required to do self-inspections, but the reports are done on paper and just get filed away. No one sees them or reacts to them. They agreed this is really a waste of their manager’s time if no one is going to follow up. This is a perfect example of how an automated data-capture platform could make this process easier and more user friendly. An automated process would allow the reports to be more visible to various levels of management and would also allow for automated notifications to go out to those responsible for follow up.

Bringing data to life can drive positive results throughout the entire organization. Capturing data just for the sake of having it is a waste of time. Capturing meaningful data in a user-friendly platform like RizePoint is valuable and will take you to the next level. Click here to learn more!

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