Company
Date Published
Author
Nick Moore
Word count
1464
Language
English
Hacker News points
None

Summary

Measuring data team ROI is challenging due to the lack of clear, repeatable North Star metrics and the fact that much valuable work is done through partnerships with other teams. Instead, data leaders focus on stakeholder voices, process improvements, and tracking changes driven by data. While there's no one way to measure data team ROI, communicating some sense of impact informs budget and headcount decisions. Qualitative impact and stakeholder trust are crucial, but also look for dollar outcomes in paid marketing, churn analysis, business health metrics, and internal workflows that correlate with ROI. Tracking time-to-insight, internal traffic to data tools, and showing stakeholders the data they need can help demonstrate the team's influence on decisions and drive meaningful change. Prioritizing the biggest opportunities and highlighting the data team's work as a shared story that shapes how teams think about products can also lead to significant impact and value. Ultimately, the key is not forcing a perfect ROI number but demonstrating the data team's influence on decisions and driving tangible changes within the business.