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The risks of not having a data strategy
22 Jan 2020by Christine Chiu
Placating the highest-paid person in your office can wreak havoc with your data strategy. What can you do to deal with HiPPOs in your office?
Africa’s deadliest animal kills an estimated 500 people a year due to its panicked aggression and rash attacks. Weighing an average 1,500 kg, the male hippo outsizes most wild animals.
Not unlike in the wild, HiPPOs in the office can also have an outsized effect on decision making. Despite coming from the corporate world, the highest-paid person’s opinion – HiPPOs – can have a disproportionate effect on charity data strategy.
Is there a HiPPO in the office?
The HiPPO and their positioning, based on seniority and compensation, can have risky effects on data-driven decision making. Harvard Business Review, an authority on business management, found that the HiPPOs can lead to decisions based on gut feelings rather than evidence.
In other areas of charity operations, the HiPPOs can also stifle innovation. A study from Erasmus University Rotterdam found that the HiPPO can be harmful to the success of the project. The HiPPO’s status can sometimes lead to team complacency, as members are less likely to contribute and challenge the HiPPO to accept new ideas.
For charity digital leaders, this could have a potentially damaging effect on data strategy. Despite the strong views which the HiPPO may have, here’s why charities should still implement their charity digital strategy.
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Charities are strategically using data
Charity digital strategy and the use of meaningful analytics relies on rational, data-driven decision making. Big data is already being used in a plethora of ways by innovative charities to reach out to new audiences, raise funds, and to improve efficiency.
Charities are having huge successes delivering impact to beneficiaries. The Jane Goodall Institute has used big data to map new primate terrain, and is using open source coding to encourage innovation. Shelter UK and the Joseph Rowntree Foundation use big data to pass on important messages about their beneficiaries.
Don’t miss out! Data strategies are here to stay
While the HiPPO may lead to poor decision making, data strategy is increasingly becoming a core part of how charity digital leaders plan for the future. Not having a data strategy could mean missing out on opportunities. Data strategy can help turn the HiPPO into a data-driven decision-maker.
Data strategy can help charities:
- Develop and inform decision-making: Having a data strategy means charity leaders can make decisions based on facts. Gathering data through CRM systems and social media analytics can help leaders assess whether a strategy is working or not. Reporting tracks progress over time.
- Understand supporters and their social media preferences: Data can also help charities understand the habits of their audience. Gathering information on how much, when, and how supporters use platforms can help charities develop targeted marketing and social media strategies. Ultimately, data can help charities decide how to build a viral hashtag.
- Help make operations more efficient: A data strategy can also help leaders manage GDPR concerns, as well as to help deliver better services. A data strategy also governs the types of data that teams use, in addition to how data is protected.
- Create more opportunities: A charity data strategy can also help reveal opportunities which might have gone unnoticed. By analysing donor preferences, charity digital leaders could uncover untapped resources.
Christine Chiu
Christine Chiu
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