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When Was the Last Time You Asked the Cost of the Data You Requested?

In today's business environment, data is king. We rely on it to make decisions, validate strategies, and keep the wheels of an organization turning smoothly. Yet, as we ascend to positions of leadership, it’s easy to overlook a critical question: What’s the real cost of the data I’m asking for? The answer is more complex—and often more expensive—than it seems.

The Hidden Cost of Data Collection

Leaders in positions of authority become accustomed to receiving a quick "yes" from their teams. But when was the last time you asked your team not just if they could produce a report but how much effort it would take? Data doesn’t appear out of thin air. Behind each metric and report, there’s a series of labor-intensive steps, ranging from data extraction across software platforms to data verification and analysis.  Harvard Business Review highlights that the significant resources dedicated to data gathering, cleaning, and analysis are often challenging to quantify, yet they play a key role in informed decision-making.

Considerations for High-Rotation Roles

High-rotation roles often inherit a wealth of legacy data—reports, metrics, and KPIs built by previous incumbents. The instinct is often to add more data based on our unique needs without assessing the value of what’s already in place because quite frankly when you are new to a role you don’t know what you don’t know yet. As a result, we end up with an accumulation of information, much of which may no longer serve its intended purpose. Without a process of data culling, the cost and effort to produce these reports snowball over time.

A Lack of Process Transparency

For many leaders, the process behind data collection remains unseen. Rarely do we discuss what goes into creating a particular piece of information, nor do we ask the effort required to gather it. Without this visibility, we miss opportunities to re-evaluate its true value. The data we request could be diverting resources from more impactful work, yet because we rarely assess this trade-off, we allow inefficiencies to linger.

A Cost-Benefit Approach to Data

There’s significant value in conducting an audit of your reporting needs, examining the cost-to-benefit ratio of each piece of information used in decision-making. Imagine the impact if you could identify reports that are consuming considerable resources yet providing minimal value. The workforce effort saved could be reallocated to projects and functions with greater strategic importance.

Data Silos and the Challenge of Integration

In large organizations, data is often housed across disparate platforms. The effort to integrate this information can be time-consuming and complex. As someone who has experienced the challenges of gathering data from multiple sources, I know firsthand how seldom the “cost” question is asked. The more fragmented the data, the greater the cost to deliver a comprehensive view.

An Opportunity for Leaders to Rethink Data Demands

By asking “What will it take to produce this data?” you’re doing more than seeking efficiency; you’re creating a culture that values mindful data usage. When we recognize the cost behind each request, we are better positioned to prioritize information that drives real value, ensuring that our teams’ efforts are directed toward more meaningful and impactful work.

As a leader, let’s start asking the question: What’s the cost of the data? You may be surprised at the answer—and the opportunities it unlocks.