The Tide Is Changing: Use BI to Capitalize on Uncertainty
When the business environment shifts, the margin for error shrinks. Companies facing tighter capital markets, rising costs, and compressed margins do not need more data. They need better visibility into the data they already have. Economic cycles test the difference between organizations that can see what is happening in real time and those that are reacting to last month’s reports.
The 2022 inflation cycle illustrated this clearly: with inflation reaching 9.1%, rising interest rates, and supply chain pressures converging simultaneously, mid-market companies that had already built real-time data visibility were able to respond with control. Those relying on monthly spreadsheet cycles were left catching up.
Dashboards Provide Essential Visibility
What can mid-market leaders do to stay afloat in uncertainty? How can they not just survive, but thrive during economic headwinds? Economies are cyclical, and those who resist the instinct to contract take advantage of the ebbs as the greatest opportunity to distance themselves from competitors.
Bain and Company has consistently advised that navigating difficult conditions requires controlling what you can. For investors and operators, that means helping management capture revenue gains, preserve and expand margins, and manage cash carefully. Success during uncertainty is about maintaining control. But control requires visibility. You cannot manage what you cannot see.
Pilots cannot navigate a storm without instruments, and F1 drivers cannot lead the field without a dashboard. They need real-time access to essential data: speed, engine temperature, fuel level. Clarity enables the best decisions, particularly in uncertain or dangerous conditions. The same holds for business. Business intelligence dashboards give mid-market executives control over the levers and leading indicators that most impact revenue, margins, and cash.
Bain has also noted that top-tier performance during challenging periods depends on fundamental value creation discipline and understanding how to manage effectively when costs are rising. Data visibility is what makes that discipline possible at the team level rather than just the executive level. However, most companies approach data initiatives like an ERP implementation: a waterfall project with lessons learned the hard way, rather than capturing quick wins and improving as they go. Enlisting a partner who understands modern data warehouse and dashboard design that is agile, easy to use, and gets adopted sidesteps the pitfalls that cause most companies to fall short. Starting with real-time scorecards like the CoolSys commercial services example can untangle points of constraint in a matter of days and quickly transform an organization through increased awareness and shared accountability. Listen to the Dashboard Effect podcast to hear our founders discuss how to make data intelligence the fastest, most effective way to put strategy into action.
Increased Valuation Through Dashboard Reporting
Several mid-market clients have shared how they increased company value through data intelligence across industries.
Commercial Services
Smart Care, a PE-backed industrial kitchen equipment service company, reported that sharing dashboards with district managers drove utilization from 68% to 72% within a year, without system re-engineering. That visibility alone translated to $750,000 per year to the bottom line, a 4% profitability increase. View case studies for more results like this.
Industrials
Equilibrium Catalysts, an industrial chemical company, discovered approximately $1 million in unbilled services through their dashboards. Prior to dashboards they were unable to carefully analyze costs by carrier. With greater visibility, they recaptured hundreds of thousands of dollars in overhead by strategically switching between carriers.
Manufacturing
Elgin Fastener Group, a PE-backed manufacturer, found that their daily Efficiency and Utilization dashboard eliminated a multi-source Excel workbook they had previously run once per month. Moving to daily reporting allowed supervisors to address training, constraints, and operational issues close to the actual event rather than weeks later, which increased production by an estimated 10%.
Data as a Strategic Investment
Many leaders, particularly those with finance, analytics, or IT backgrounds, are aware of their data deficits. Their organizations may have acquired technical debt through subpar reports developed in Excel, filling ad-hoc report requests through an order-taking approach. These leaders may be apprehensive about BI, viewing the prospect through a lens from five or ten years ago. But history is not on the side of those who do not take advantage of the speed that current tools offer. Strategic, forward-minded investments during difficult economic periods are often the bellwethers of future growth. Now is the time to overtake competitors who remain glued to the rear-view mirror.
When the concealed is made visible, uncertainty takes a backseat to calm, controlled execution. Business is largely about visibility: what is working, what is not, and what is coming around the corner. Business intelligence dashboards are the shortest path to regaining control and taking advantage of a downturn. Contact our team to get started.
