Building a data team
Inspired by a recent article from Erik Bernhardsson titled “Building a data team at a mid-stage startup: a short story”, Chris and Daniel discuss all things AI/data team building. They share some stories from their experiences kick starting AI efforts at various organizations and weight the pro and cons of things like centralized data management, prototype development, and a focus on engineering skills.
Matched from the episode's transcript 👇
Daniel Whitenack: I’m struck by the scenario that’s talked about in this article from Erik. He talks about a sort of mid-stage startup around 10 million… So that’s about the size that my wife’s business is, and looking at her marketing and sales/customer service department - if you think about that early stage, like you were talking about, it was basically her, she built up a ton of expertise and internal knowledge in terms of what was working and what was driving sales, and that basically boosted the company to mostly where it’s at. But then you start thinking “Okay, well it’s at a size where we’re hiring in marketing people, or people that are supposed to be driving sales.” Is it reasonable to assume that each of those people are going to have both the ownership over the business and the drive to build up that level of internal knowledge, and there’s gonna be appropriate knowledge transfer between all of these people coming in? It’s just not the case.
Like you say, you hit this wall where “Now how do we be creative, how do we try new things, and how do we make sure that we’re driving new sales, and growing?” It has to be data-driven at that point. But the culture wasn’t sort of set up that way organically. Not because they weren’t wanting to be that way, but because it just sort of organically grew into this department where they’re doing the things that, like you say, they know worked to some degree, and they felt like were still working… So I think now, in her company, they’re doing a lot of thinking about “How do they drive that data-driven culture in marketing?” And some of it is just the very simple stuff that even Erik talked about in his article, like “Do people understand how UTM codes and website traffic works?” There needs to be some knowledge sharing there, and then there needs to be common data gathering, like “Okay, we’ve got this stuff over here in Facebook Pixel, and this stuff over here in Google Analytics, and this stuff over here in Shopify, and this stuff over here in these random places…” No one can really coalesce around anything if all of that is fragmented out, so there needs to be data aggregation together, there needs to be a common way to look at it…
[28:20] And then, you know, building that culture - it’s also about people’s motivation. You have to think about “If I’m gonna show something to this marketing person, how are they motivated by that?” I mean, it could be like commissions, or something. If you make this much off of Facebook ads, then you get this commission or this incentive. Well, pretty quickly they’re gonna wanna know how much they’re making off of Facebook ads, and if they’re not setting up their UTMs right and they’re not using the common systems where data is coming in, then they’re not gonna be able to know