When did the controller become a Data Analyst?

The roles of controllers and data analysts often converge due to their similar tasks of data gathering, preparation, analysis, and visualization.

Both roles demand strong analytical thinking, problem-solving abilities, a strategic mindset, and communication skills. Controllers focus on using structured data from validated sources to achieve predefined financial objectives, such as budget adherence and financial forecasting. They analyze historical data to predict future outcomes and implement corrective measures if goals are at risk. This goal-oriented analysis is a core function of controllers, who primarily address specific financial questions.

In contrast, data analysts often work with unstructured data, which requires them to find, clean, and structure the data before analysis. Their objective is to uncover hidden patterns or insights within the data, often without a predefined question. Data analysts might use advanced statistical methods, modeling, and machine learning to solve complex problems, such as predicting customer behavior or optimizing operations. This broader analytical scope necessitates a background in mathematics, statistics, or computer science, providing them with the technical skills to handle diverse and complex datasets.

The role of controllers is evolving into that of data analysts due to several key changes in the business environment. First, one significant factor is the multiplicity of systems resulting from digitalization. Many companies have implemented digital solutions without a coordinated approach, leading to disparate systems and databases across different functions. This lack of centralization creates challenges in data integration, requiring controllers to possess data analysis skills to reconcile and synthesize information from various sources.

Secondly, another driving force is the need for much lower granularity in data. Managers tend to demand detailed, transaction-level insights to inform decision-making processes. Controllers must now drill down into granular data to identify specific trends, anomalies, and opportunities for optimization. This granular approach is essential for accurate forecasting, budgeting, and performance analysis.

Third, the increasing demand for proactive data usage in day-to-day operations and planning processes has transformed the controller's role. Real-time data access and analysis are crucial for timely decision-making to respond swiftly to market changes and operational challenges.

Finally, the shift towards data-driven cultures within organizations places greater emphasis on the ability to interpret and communicate complex data insights.

This means the best controllers navigate financial stewardship and data analytics to bridge the gap between financial and operational metrics to drive business performance.

At REKOLT, we believe that the first data analysts in a company should be integrated within the CFO's office, to complete the capabilities of controllers with essential data analysis skills. We offer Data Analysts as a Service to support controllers, especially in PE-backed environments where detailed and precise monitoring is crucial for value creation.