Quantifying Your Value: A Framework to Unlock Β£100M Profit Annually
In the world of data, analytics, and AI, conversations around business value often hit the same frustrating roadblocks:
β βWeβre investing in data, but whereβs the ROI?β
β βWe donβt know what our data team is actually delivering.β
β βHow do we prove the impact of data on the bottom line?β
If youβve ever found yourself grappling with these questions, youβre not alone. But Peter Everill, an experienced data product leader, has developed a framework designed to cut through the noise and directly tie data initiatives to P&L impact, a methodology that has already unlocked over Β£100M in profit annually.
This approach isnβt just about tracking performance; itβs about knowing where to focus and what action to takeβthe two most critical questions for any CEO, CFO, or business leader.
The Problem: A Data Industry Stuck in the Weeds
Too often, data teams work in isolation, hoping their analysis will magically translate into business value. But the reality? Many organisations:
β‘ Track the wrong metrics β focusing on vanity KPIs instead of real business drivers.
β‘ Struggle to measure performance gaps β making it impossible to quantify value.
β‘ Lack a clear framework β to prioritise data-driven actions with tangible impact.
The result? Business leaders lose confidence in data teams, leading to frustration, underinvestment, and reliance on external consultants.
The Solution: A Simple, Repeatable Framework
Peterβs methodology is built on a simple but powerful principle:
β
Identify how business processes impact the P&L.
β
Create failure state metrics to measure where things are going wrong.
β
Use data to pinpoint the biggest opportunities for improvement.
β
Recommend clear, prescriptive actions, not just insights.
Itβs a structured approach that data teams, finance leaders, and business executives can align around, ensuring everyone is working towards the same goals.
Step 1: Start with the CEOβs Mindset
A CEOβs job is to drive business growth and optimise capital returns. There are two ways they do this:
1οΈβ£ Expanding the business β launching new products, entering new markets, or making acquisitions.
2οΈβ£ Improving existing performance β optimising processes, reducing inefficiencies, and increasing profitability.
The second point is where data teams should be focused. The best companies excel at identifying performance gaps and taking action, just like a doctor, financial advisor, or personal trainer helps you improve health, finances, or fitness.
Step 2: Map the Business Process & Identify Failure Points
Every business is a set of processes. Each process has failure points, areas where inefficiencies lead to lost revenue, higher costs, or missed opportunities.
π Example: A Retail Business
- The customer lands on your website β But the product is out of stock β
- They add to basket β But the checkout page crashes β
- They place an order β But delivery is delayed by two weeks β
Each of these failures directly impacts sales and profitability. Instead of waiting for revenue to dip and scrambling for answers, data teams should be proactively tracking these failures as metrics.
Step 3: Turn Data into Actionable Insights
Once failure points are identified, the next step is prescriptive action recommending what needs to be done to fix the problem.
Common types of business actions include:
π¨ Exception Management β Handling one-off failures before they escalate.
π Execution Optimisation β Identifying low performers and improving their results.
π Process Redesign β If failure is widespread, the whole process needs fixing.
π Policy Adjustments β Data-driven decisions on resource allocation.
π€ Algorithmic Optimisation β Using AI & automation to enhance decision-making.
Step 4: Measure & Prove the Impact
A metric is only valuable if it drives action. Thatβs why itβs essential to:
β Assign metric ownership β Ensure someone is accountable for improving it.
β Embed data into workflows β So people see it when they need it.
β Track improvement over time β Using five-day moving averages or other statistical techniques.
β Gamify success β Highlight how much money has been saved or gained from taking action.
Why This Works: A Shift in Thinking
πΉ Itβs not just about dashboards. The goal isnβt endless reporting, itβs about taking action.
πΉ It forces business & finance buy-in. Data teams work alongside business leaders to identify opportunities.
πΉ It moves data teams from cost centres to value drivers. This approach ensures data is seen as a business enabler, not an overhead.
Final Thoughts: Start Small, Think Big
If youβre a data leader, CDO, CFO, or business executive, the key takeaway is: this isnβt an overnight transformation.
Start small. Pick a process where you have good relationships, access to data, and a clear business sponsor. Prove the methodology, then scale it.
π Want to implement this approach in your organisation? Reach out and letβs start the conversation!
You can listen to the full episode here:
Signup to Our Newsletter
"*" indicates required fields