Danger, skills gap ahead!
One of the most striking findings in PwC’s 22nd Annual Global CEO Survey is that the ‘information gap’ — the gap between the data CEOs need and what they actually get — is just as wide in 2019 as it was 10 years ago. This is despite massive advances in the range of data available and the significant levels of investment being made in data analytics solutions.
This gap has three key causes: a shortage of analytical talent, difficulties in accessing the data that’s held in silos across the business and the reliability (or otherwise) of how that data is analysed. As digital technologies continue to demand new skills and make old ones redundant, there’s a very real danger that employers, educators, public policy-makers and employees might all expect one another to close the widening skills gap. The biggest danger relates to those skills needed to implement and exploit Big Data. And somebody needs to take responsibility.
Employers are rightly concerned about this shortage of analytics talent. But they seem more inclined to recruit experienced hires than to develop their own people. To future-proof their careers, employees will increasingly need to develop an ethos of self-reliance, adaptability and lifelong learning.
Leaders and business-unit managers are used to making decisions and managing performance based on their own experience and personal judgment. These decisions are not only subject to biasi ― they’re also increasingly out of date. Acumen acquired through historical experience provides little guidance to a digital future.
For example, numerous factors might influence an outcome. And while a human is unlikely to refer to more than three or four factors when articulating his or her view, an algorithm (or any advanced statistical analysis) will take account of many, many more.
So, the need is growing for a rational, measured discipline to ensure that decision-making and performance management are based on proper analysis and all relevant information. Its focus must be on delivering value to the business and its stakeholders.
If the insights gained are to be properly applied to improving performance, not only must business leaders demand information and analysis but evidence to support views must be expected when making decisions as part of the culture.
Management accountants may be well-placed to play this key role. They already come into contact with all aspects of a business, providing and using information in the management control cycle and providing professional objectivity to ask questions and address bias in decision-making.
This gives them a firm foundation to expand their remit well beyond just assembling and analysing financial information. And it gives them the potential to play important roles in ensuring Big Data is accessed and analysed in the interests of the business, its customers and all its stakeholders. It’s a very exciting and interesting opportunity.
“The biggest danger relates to those skills needed to implement and exploit Big Data. And somebody needs to take responsibility.”
