How Middle East Companies Can Give Data Leaders A Runway For Transformation

(MENAFN- Khaleej Times) In today's data-driven world, Middle East businesses face an ever-growing deluge of information and artificial intelligence (AI) has permeated internal operations at nearly every level of organisations.

Externally, companies are responding to demands from an increasingly privacy-conscious population - 40 per cent of Middle East consumers are wary of providing their personal data on social media and websites - which only reinforces the need to access and manage data effectively. Thankfully, executive teams have come to realise and accept the importance of a Chief Data Officer (CDO) hire in recent years.

However, hiring a CDO is only the first step; setting up the CDO for success is the real challenge.“Often, the introduction of a CDO encounters resistance from teams - as for CDOs to have an impact, there is a necessary degree of change they must exert over long-standing norms and practices. While this is only natural, established leaders and teams may perceive the CDO's new ideas as invasive rather than beneficial, leading to pushback against change,” said Tom Clarke, partner in Heidrick & Struggles' Dubai office.

For a CDO to thrive, executive teams and boards must not only accept intrusion but embrace it as a game-changer for transformation.“A CDO with the authority to influence operations can uncover outdated practices within the business and prepare the organisation for the future. Take for example, productivity. Research has found that the productivity of emerging economies, including the Middle East, has only grown at a rate of 0.3 per cent annually over 25 years, compared to the global rate of 2.3 per cent. Closing the productivity gap will be a key mandate for the Middle East CDO to help the organisation become more resilient. A successful CDO would be able to identify opportunities to roll out data-driven technologies like generative AI across the organisation, incorporating them into everyday workflows,” said Clarke, who is also a partner of the global Technology & Services, Technology Officers, and Digital Officers practices.

To welcome intrusion, companies must understand that data is not just a byproduct of their operations but a strategic asset for competitive advantage.“Some boards in the Middle East already understand this - Abu Dhabi-based AI company G42 Group, for example, introduced an“AI-powered board member” to analyze decades-worth of business data, financial information, market trends, and global economic indicators. The AI counterpart was able to bolster decision-making with real-time insights, contributing to efficient resource management and advanced risk management,” Clarke said.

One pitfall in embracing intrusion is failing to align expectations across different stakeholders, especially at the board level. Depending on their experience and expertise, board members may not immediately understand a data transformation roadmap in its entirety, or have different ideas of what success looks like. Compounding the issue is the pressure on the CDO function to deliver results overnight. A company without the right data infrastructure, for instance, will not be able to see any quick wins - which ironically jeopardises the CDO's authority and ability to effect further change.

“Challenges like these usually stem from a translation gap, where complex technology models are not explained in a language board members understand. While CDOs need to own skill sets like stakeholder management, boards must also educate themselves on emerging technologies. This mutual effort enables both sides to engage in meaningful discussions, aligning on the company's transformation roadmap and setting realistic goals for both the short and long term. Overall, board-level engagement with and support for the CDO's activities are vital to their success and to ensure they have the necessary resources - and runway - to be intrusive,” Clarke said.

Securing organisational buy-in

Redefining organisational culture to support the CDO is a critical next step. Organisations must develop a data-driven culture from the ground up, which requires sustained commitment from leadership across departments, Clarke stressed.“Leaders need to lead by example, integrating analytics and AI into business processes and decision-making. They also play a crucial role in communicating employee concerns to the CDO, especially when new initiatives disrupt established practices. Fears of job displacement or reduced human influence often originate from a lack of understanding. To ease these concerns, leaders should collaborate with the CDO to implement changes iteratively, using feedback to ensure employee concerns are addressed,” he added.

Taking an inclusive approach to transformation where feedback is not only welcome but actively sought will ensure that their initiatives resonate throughout the organisation. Heidrick & Struggles research has found that companies that encourage input from all levels are six times more likely to be innovative and agile, and eight times more likely to achieve their business objectives.

The future is disruptive

As the Middle East looks to become an AI hub, an increasing number of organisations are seeing change as essential. A HLB Global survey found that nearly half of Middle East and Africa leaders are already either widely using or eager to adopt AI to build a competitive advantage for their organisations.

Yet, many who are exploring AI have reported experiencing difficulties with data, whether it is defining processes for data governance or integrating data quickly into AI models. This only underscores the critical role of data in capturing value – and the importance of a CDO in unlocking data's potential.

“Perhaps the recipe to success in the age of AI lies in a methodical approach to welcoming change - or in this case, intrusion. Even the most highly qualified CDO needs a runway for success, starting with companies welcoming the CDO's influence, aligning expectations at the board level, and securing organisation-wide buy-in. For Middle Eastern organisations, the difference between merely staying afloat and leading the charge in a data-driven world lies in how boldly companies invite intrusion to the table,” Clarke said.

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