Faced with information overload and attention deficit, simply providing more of the same data is not enough. Leaders need data that will illuminate what they cannot see.
Alternative data is data that you don’t have already, data that offers an alternative perspective, challenges the orthodoxy and illuminates new opportunities or challenges.
In a VUCA world it is difficult to predict what is around the next corner. Embracing complexity and fast-change requires not just traditional, but alternative data too.
There is standard data – the type of data that everybody has. But alternative data means alternative sources, metrics, and variables. It means alternative reporting too – that is going beyond data tables and traditional reporting, so as to bring data to life and to engage stakeholders in the process. It requires data modelling and visualization.
Alternative data is in the news because it provides financial analysts with new insights to maximize returns. But it can also help leaders to maximize returns too. That includes the Return on Talent Employed™ – a measure of how successful the organization is at harnessing the talent and skill of its people.
Here is a short list of some of the Alternative Metrics provided by Pitstop Analytics™:
These alternative metrics are part of a new breed of KPIs for a VUCA world. They are future-focused metrics, called KPPIs (Key Performance & Potential Indicators). These metrics are tied to the sustainability of performance and the potential for future innovation and growth. This is possible because alternative data tracks variables that matter, but may have been previously considered un-measurable.
To measure messy, un-measurable and even the unknown requires alternative data sources too. These include being able to gather insights from across your organization (and in particular it’s outliers), but also in respect of your peers, as well as those industry vanguards (i.e. the greatest and the best).
As Alternative Data, Pitstop Analytics™ doesn’t just confirm what leaders already suspect but reveals what they cannot otherwise see. In a VUCA world it challenges out-dated world-views by highlighting blind spots, latent risks and hidden linkages or inter-connections.