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76                                                  The Real Work of Data Science


                              Where should data scientists report?

                                    Required analytical “sophistication”
                                Fine-tuning a sophisticated
                                algorithm/informationalizing           Series of fundamental
            Basic process improvement  a product    “One-time” opportunity  discoveries


              In the line: Everyone  Really close to,  Project team with online  Permanent “lab”
                  involved         but not in the line  responsibilities
                                       “Home” for data scientists
           Figure 15.1  The best “home” for data scientists, organizationally, depends on the sort of problem they
           are attempting to solve.

           Implications

           The real work of the CAO involves acquiring enough data science talent and getting the right
           organizational structure in place so the overall team of data scientists (and the organization
           as a whole) is most effective in turning data into information, making better decisions, and
           building organizational capabilities. The CAO must have the trust of senior executives if
           this is to happen, so building that trust, and cultivating personal gravitas, is his or her most
           important job.
             The CAO should report as high into the company as possible. He or she will also lead a
           contingent of data scientists, variously placed according to their roles. Some, such as those
           helping solve day‐in, day‐out problems, will reside in the line. Conversely, a few devoted to
           longer‐term or more strategic work may reside in a “data lab.” Finally, those whose work
           supports midterm objectives may reside in a “center of excellence” or other structure close
           to, but not in, the line.
             Finally, the real work of the CAO involves adjusting the organizational structure more or
           less continuously, as everything in the data space is in continuous flux.
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