Decisions from the outset

These decisions should not prevent you from beginning other work on the data platform. However, the sooner you address them, the better. Early alignment on these foundational aspects will save time, reduce confusion, and prevent costly changes down the line.

Choosing a reporting timezone early is crucial because changing it later can cause major issues:

• Previously reported numbers may shift, leading to confusion and mistrust in the data. (very bad)
• A consistent timezone makes it easier for business users to interpret reports.
• It simplifies integrations with new systems.
• It avoids ambiguity about when events, like sales or transactions, actually happened.

Whether you decide on a company-wide timezone, the local timezone of each event, or the timezone of the source system, document the choice early and make sure everyone understands it.

Ideally, this decision should align with Finance to ensure that data reporting and financial reporting use the same time conventions, making reconciliation and analysis easier.

Setting clear rules for handling currency from the start prevents confusion and inconsistencies down the line.

• What will be the default reporting currency?
• How will you handle currency conversions?
• How will exchange rate fluctuations be handled in reports?
• What are the processes for updating currency rates?

Decisions around currencies should ideally be made by the CFO of the company. Under all circumstances, aligning with Finance is important to ensure consistency between financial reporting and data reporting.

Addressing security and legal requirements early prevents costly mistakes and compliance risks.

Key considerations could include: access control, compliance, data retention, data deletion, and third-party sharing.

It’s essential to clearly define who in the organization has decision-making authority over legal, compliance, and security matters.

A strong working relationship between the manager of the data team, Legal, and Security is crucial for navigating these responsibilities effectively.

A common mistake among data managers is trying to work around Legal and Security, fearing that their involvement will slow things down. In reality, handling these issues from the start makes everything easier in the long run. Bringing in Legal and Security early gives them a chance to help you find solutions, rather than forcing last-minute fixes when problems arise.

Clear and consistent business definitions prevent misunderstandings and ensure alignment across teams.

Key terms should be documented in plain business language, with examples and relevant calculations.

Terms to define could include:

• Customer: What qualifies someone as a customer? (e.g., signed contract, first payment, active usage)
• Gross Margin: How is it calculated? What costs are included or excluded?
• Revenue Granularity: Should revenue be tracked at the order, invoice, or invoice-line level?
• Product Definition: Is a product defined as a SKU, a product line, or a product family?
• Cost of Goods Sold (COGS): What expenses are included?
• Recurring Revenue: What qualifies as recurring revenue, and what does not?

Aligning on these definitions early helps ensure that reporting, analysis, and decision-making are based on a shared understanding across Finance, Product, Sales, and other key teams.