Why strategy needs to be specific…

20 09 2011

Today’s Dilbert strip hit on a couple of key thoughts, albeit in traditional Dilbert fashion…

This is a pretty simplistic, yet sadly realistic, manner in which we define corporate agendas.  We lay out a concept and expect the organization to translate our words into action.  What happens is that often the definition is fuzzy, which allows for all sorts of interpretation and a watering down of execution.

While a little nitpicky here, Increasing Market Share is a goal, not a strategy.  Why does this matter?  The primary reason is that we need to teach the organization to think along common lines. We need to communicate specificity – tell people exactly what we want.  The goal is to increase market share by 5%, and we are going to do this by increasing new product revenues by 10% and by $4mil in cross selling opportunities to our customer base.

Additionally, every company is striving for the same four things – Increase Revenues, Improve Profit Margin, Elevate Market Share, and Enhance Financial Health.  It is how we balance these four items that sets us apart from our competition, and how we tell the organization what matters.  Will we sacrifice a launch date and potentially our 3rd quarter revenue goal if a product is offline?  Will we bend over backwards to keep a customer from defecting?  Will we sacrifice margin for a new customer in a new market?  The company must know the trade off equation as most decisions impact something else.  Without understanding this, people make decisions based on what they want, not what the company wants.

Ask yourself how deep your organization understands its goals?  And then compare it to how specific the goals, strategies, and tactics are for the organization? If there is a gap, start somewhere and be very specific of what you want.  Changing the culture to be more specific is not all that difficult.





The analyst function is dead

8 09 2011

The role of the operational analyst has moved from the business into both Finance and into IT.  The Finance team typically focuses only upon the financial outcomes of the business and has left the operational side of the business to the IT team.

Here is a conversation a client of mine recently had with their analyst…

ANALYST: ” Here is the report on units sold this year.”

BUSINESS:  “What happened here?”

ANALYST:  “That is a spike in the data.”

BUSINESS:  “Right.  But what happened?”

ANALYST:  “That is what the data is showing.”

Sadly, this is not uncommon in the business world today.  Billions of dollars are spent every year on Business Intelligence software to help us visualize what is happening within the business, yet we are really no better off in terms of insight.

WHY is this happening?

  1. The biggest reason why this is happening is we have changed the role of the analyst.  It used to be a marketing person looking at marketing data, or operations looking at manufacturing information.  We have now moved that role to IT, or IT has promised that that can do it better with their understanding of data structures.
  2. We have wrongly assumed that a picture is worth a thousand words.  In BI terms, a chart is worth a handful of questions. IT can not predict that next series of questions and is then left to prioritize what questions to tackle next.
  3. The pace of business, or at least the pace and variety of business questions (like the data we collect) has risen exponentially and scaled faster than our ability to respond.
  4. IT is over burdened and lacks the political power and will to say “no.”  They are in complete reaction mode and lack the resources to cover the demand.

WHAT can we do to fix this?

  • First off, we need to understand the analytical gap within the organization.  IT can manage the data and needs to partner with the business, but the business needs to own the intelligence.  It is easier to teach the business a little about technology, than teach the IT resources about the business.  The business side needs to find that type of person who understands a little about technology, but has a solid mathematical or statistical mind with a curiosity about improving the business.
  • The organization needs to find a better way to integrate better analysis back into the management process.  We need to give the analysts a frame of reference in which to explore ideas and present results.  Some of this will follow reporting upon weekly/monthly operational outcomes, while most will likely by ad-hoc hypothesis or what-if scenarios about some aspect of the business.
  • The culture has to reward critical thinking.  This is not true in most corporate cultures.  All to often, the analyst is criticized for not “going along” with the current belief.  If the culture does not reward new thinking, then the analysis will quickly fall in line with visualizations that support the status quo.
  • Invest in tools and training beyond just the core cubes and reports of the BI market.  While a good portion of analysis can be done with Microsoft Excel and a data dump, the more we want out of our analysts, the more we need to give them.  We need them to look at market baskets, threshold containment, frequency curves, optimization models, assumption testing, correlations, and many other types of analytical tools.

 





Strategy & Operational Performance Management Survey

21 07 2011

If you have a moment, take a few seconds to fill out a survey.  I’ll post some of the more relevant survey results here over time. Basically 7 questions and a place to fill in your answer if you want to share more.

Link to survey





The enemy of my enemy is my friend

19 07 2011

Strange what a few years means to the technology sector.  Google, once champion of the little guy, the individual, the anti-Mircosoft, now becomes the problem.  The Michigan – Ohio State rivalry of the tech industry was supposed to be Apple and Microsoft.  They have spanned great battles over the years – and better commercials…

Yet, all of a sudden Google is the evil invader in the space.  What else could make Apple and Microsoft consortium partners?

WHAT!!  Wait a second…

Nortel Networks, one of the great patent holders, is watching its power, influence, and ultimately its profits dwindle away.  Up for auction were a sizable number of its patents.  While Google was the early favorite, Apple and Microsoft teamed up with Ericsson, EMC, RIM, and Sony teamed up with each other to outspend Google.

While we get to wait and see what this means for Google, we can wonder what our competition might be willing to do to us given the opportunity?

  • How do external opportunities trigger discussions within the organization?
  • Who monitors the external market for us?
  • How do we leverage information to make timely decisions?
  • How well do we gamemanship our competition?  Are they better at it than us?

 





Research in Motion’s public battle

5 07 2011

When executives feel they have to go outside of a chain of command in order to voice concerns, we see perfect examples of the need for Operational Performance Management (OPM).  The current Research in Motion public battle is a great place to start.  An anonymous executive sent an open letter to Jonathan Geller, of The Boy Genius (BGR.com), to call out the current RIM culture.  What is more entertaining about this is the fact that RIM responds publicly, which only makes this sound like a bigger problem.

Highlights of the RIM letter:

  • You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.
  • We often make product decisions based on strategic alignment, partner requests or even legal advice — the end user doesn’t care. We simply have to admit that Apple is nailing this and it is one of the reasons they have people lining up overnight at stores around the world, and products sold out for months. These people aren’t hypnotized zombies, they simply love beautifully designed products that are user centric and work how they are supposed to work.
  • Teams still aren’t talking together properly, no one is making or can make critical decisions, all the while everyone is working crazy hours and still far behind. We are demotivated.
  • Strategy is often in the things you decide not to do.
  • We simply must stop shipping incomplete products that aren’t ready for the end user. It is hurting our brand tremendously. It takes guts to not allow a product to launch that may be 90% ready with a quarter end in sight, but it will pay off in the long term.
  • The truth is, no one in RIM dares to tell management how bad our tools still are. Even our closest dev partners do their best to say it politely, but they will never bite the hand that feeds them.
  • 25 million iPad users don’t care that it doesn’t have Flash or true multitasking, so why make that a focus in our campaigns? I’ll answer that for you: it’s because that’s all that differentiates our products and its lazy marketing. I’ve never seen someone buy product B because it has something product A doesn’t have. People buy product B because they want and lust after product B.
  • RIM has a lot of people who underperform but still stay in their roles. No one is accountable. Where is the guy responsible for the 9530 software? Still with us, still running some important software initiative. We will never achieve excellence with this culture. Just because someone may have been a loyal RIM employee for 7 years, it doesn’t mean they are the best Manager / Director / VP for that role.
  • However, overconfidence clouds good decision-making. We missed not boldly reacting to the threat of iPhone when we saw it in January over four years ago. We laughed and said they are trying to put a computer on a phone, that it won’t work.
  • Reach out to all employees asking them on how we can make RIM better. Encourage input from ground-level teams—without repercussions—to seek out honest feedback and really absorb it.

All of these are examples of what happens in almost every business culture I have witnessed.  It is certainly not unique to RIM. If you think this is not happening within your business you are sorely mistaken.

What can you do….

  • Foster honest discussions.  Stop punishing those who do not follow the company line. Reward critical thought.  Ask people to do their homework prior to the meetings.
  • Listen.  Tap into the collective intelligence of the organization.  1,000 eyes see a lot.
  • Act out.  Stress your opinion if you have a dissenting idea.If you love your company and passionate about what you do, chances are your opinions probably do matter.




Changing Market Place

7 04 2011

Yesterday in the NYTimes was a story about the speed of the changing U.S. race demographic.  As our demographic changes, so will tastes and demand.  Many companies have sat atop their markets feeling they are invincible, yet with these changes many of the companies will find out much too late that they were not as solid as they once felt.

Have you asked yourself any of the following:

  • What percent of our clients come from the majority?
  • Do we have products that meet demands from all sectors?
  • Are we at risk if the legislature, or governing boards, can their ethnicity over time?
  • Where are our biggest threats in this new market?
  • Where are our greatest advantages?
  • What else can we do to capture more in this changing market?
  • Where might new competitors come after our market?

If you are not strategically discussing questions like these, then you elevate your risk of something happening to undermine your position within your market.

 





Pink Bat

9 03 2011

I know I have not published much here lately, but I have been writing a fair bit.  Some of these I have just been a little timid about sharing as they are a little inconsistent with the goal of this blog.

Anyway, while I was doing a little research about my current project I stumbled across this and thought the video was well worth sharing. In a nutshell, train yourself to see solutions to problems.  Train your business to be more aware, to take risks, but more importantly to always be thinking about solutions.

The following video is from Michael McMillian and while the book does not get the wildest of reviews, the concept is and short video is worthwhile.

 

pinkbatmovie.com





Grab your Popcorn…Things are about to get really weird

9 12 2010

There are things you hope never happen to your business, some you even discuss and prepare against. And then it happens just like you planned: a rogue employee for the US government slips a little known website confidential material and suddenly, all heck breaks loose.

This example seems like a Hollywood sci-fi show, yet the effects and impact are played out in reality and cost innocent bystanders money.  What started with Julian Assange posting a few things have spiraled towards a digital Armageddon.  First was a smear campaign against Assange; true or not, things were leaked to damage his reputation. Then, those hosting WikiLeaks were pressured. It worked, and like a good fighter, he took the punch, regrouped, and counter-punched.  We know the story, it has been the same through time. All of a sudden he is seen as an underdog, and the following starts. He becomes the flag-bearer for those oppressed and in the shadows, who then rise up to support their black knight. And all of a sudden, businesses involved in some way are attacked.

So buy your “Go WikiLeaks Go!” tshirt (you knew someone had to make a t-shirt), grab your popcorn, and get ready for the show – this one is just starting up.  And I have a strange feeling Assange might be saving his best for last.

For those of you playing the home version…click here for a link to the Google news thread on WikiLeaks.

While you are at it, you might have a discussion about what would happen if your website is attacked.





Visualization Methods

14 10 2010

I thought this was worth sharing….Periodic Table of Visualization Methods.  This is a nice visualization of the different types of visualization.  It shows some good examples, and some not so good examples of visualization. Make sure you mouse over the different elements.

Rules of visualization designed to create action:

  1. Keep it simple, clear, and concise – with the emphasis on simple.  Don’t use complex charts to explain simple ideas.
  2. Know your audience.  Don’t present glorious details of each step in the analytical process to executives – trust me, they don’t care.
  3. Find a chart style that works well with the data.  Line charts show historical trending, bars charts do a better job of showing relativity.
  4. Don’t use 10 charts when 1 could suffice.
  5. Label well.  Take the time to make sure all of the information is explained.  The last thing you want to happen is for someone to look at it and say “what does it mean?”
  6. Understand there is a difference in analysis and presentation.  If you are trying to convince someone to act, then make sure the data (and you) tell the story.
  7. Start with the big picture, then explain (if necessary) how you got there.  People learn by seeing the picture first, then seeing how the parts go together.
  8. Document your assumptions.
  9. Explain your conclusions, don’t expect your audience to jump to the same answer.
  10. Highlight the relevant points within the data that augment your argument – use a color scheme that calls out the item if you can (red bars vs gray).  Do not be afraid to use the power of a printed report and some hand written notes with arrows to the corresponding areas.
  11. Understand where and why the data does not support your conclusions.  Be prepared to defend against those points, because your audience will likely be looking for ways to contest your conclusions.
  12. Practice what you want to say.  The more proficient you sound the more convincing you will be.




Flakes…not just for breakfast anymore

5 10 2010

Carbon Flakes (aka graphene) just earned a pair of University of Manchester students $1.4 million, oh and the Nobel prize.  Think nanometer material that is unbelievably strong (Wikipedia).

While we might be a few years off, there is certainly some potential to see new paradigm shifts in certain markets:

  • What could a light weight, strong coating do to the car market where weight and MPG are inversely related?
  • What could it mean to the military in terms of personnel and vehicle armor?
  • What could it do to clothing?
  • How about kitchen materials?
  • How about computer components?
  • Plastics?

If you believe this could impact your products, your market, what would you do?  When would you need to start thinking about it?  How do you discuss items that might change your space?





The end of Blockbusters…

23 09 2010

OK, well it is potentially the end of Blockbuster Inc.  This morning Blockbuster filed for chapter 11 protection.  It is a great example of the Risk of being the market leader.  They owned the market, they were on top of the world.  I am sure during their heyday money was being thrown all over the place.

I would love to hear these questions answered:

The trap of leadership is that you often have to wait and see the result.  You are often not allowed to change your business model until it is too late.  If you change it when you probably need to and a loss occurs, then everyone loses their jobs.  The analysts would quickly call out leadership saying that they lost market share because of the business model shift.  Even it is was a great move that would ultimately save the company, our short term focus is entirely too great.

It is also difficult to understand the nature of the perceived threat.  I am sure there were a couple of times when Management said “what do we do about NetFlix and the changes in the market?”  I would guess that 10% market share did not scare anyone, nor 20%.  Yet, at this point there was too much momentum.

As leaders, when do we act?

If we react too soon, we risk looking prone to panic.  We can always explain it easier after the fact.  Our egos, politics in general, and concern about saving face probably drive more decisions than anyone would ever want to admit.

All to often we push harder on marketing and sales to cover shortfalls in market share.  I would be willing to bet that the company spent more time creating sales spiffs and getting creative in terms of finances, than investing in new business models.  What this leads to is a further entrenchment into the business model, a “we can weather this storm” mentality.

I wonder what would have happened if they would have set hard targets in terms of driving action.  What if they would have said “once our market share slips by 10%, I want a meeting where we come up with 5 new business models”.  We are just not trained to think about creating very specific action.

We ponder and delay (then get out and let someone else handle the mess).





Advanced Analytics

22 03 2010

A major item organizations grapple with is the concept of advanced analytics.  They want it, but have little idea how to use the various tools to make it happen.  Unfortunately too much information often blurs the lines.

For example, I watched a sales presentation on Predictive Analytics where the key outcome showed how to build databases with the tool yet almost completely missed the fact that the real benefit should have been something like “we were able identify two segments to target a marketing program for more effectiveness.  Instead of spending $500k on a generic campaign we were able to identify key attributes that drove increased customer interaction and focus the campaign to only $200k on those segments.”

Why is this? The primary reason is we do not truly understand the tools and how best to use them.  A Swiss army knife is not good for home repair, but is the perfect tool to throw in a hockey bag, or car trunk for occasional use as a widget to get you out of a jam – a screw needs to be tightened, a shoelace needs to be cut, or an apple peeled.  We need to understand which tool to use in the most appropriate situation instead of thinking of various tools as universal.

Business Intelligence, Planning, What-If Scenario Tools, Optimization, Dashboarding, Scorecarding, Cubes, Cluster Analysis, Predictive Analytics are all different tools for vastly separate purposes yet have similar uses.

Advanced Analytical Tools

Here are the core elements of Advanced Analytical tools:

  • Business Intelligence – great for creating an enterprise-wide, data visualization platform.   If you do this right, you should create a single version of the truth for various terms within an organization.  It should enable better reporting consistency standards for the organization.  In the end, it reports what the data says.
    • Scorecard & Dashboards – These are primarily BI tools that have a more organized or structured methodology for presenting ideally the Key Performance Indicators.  These are great tools, but to be most effective, they need a specific purpose that is highly integrated into a management process.
  • Enterprise Scenario Planning – Most enterprise planning exercises are giant what-if scenarios that try to plan out financial outcomes based on a series of drivers (employees, widgets, sales reps, etc.).  We build out plans based on a number of assumptions, like the average sales rep drives $2mil in business, or benefit costs for the year are going to be #of employees * average salary * 2.  We do this primarily to lay out a game plan for the year and we do it as part of an annual or rolling cycle.
  • Tactical or Ad-Hoc What-if Scenario Analysis – Besides the full scale project we do to plan out the company’s cash outlays, we also do a significant amount of smaller, typically tactical “what-if” scenario tests.  This is traditionally done in Microsoft Excel.  We dump a bit of data into excel, make a number of assumptions and try to build out likely scenarios.  For example, “if we were to create a customer loyalty program, what would be the cost and a likely reward.”  We are doing this to test ideas, so yes it might be ideal to bolt those into the Enterprise planning tool, but it typically takes too much overhead.  It is easier to just get something done quickly, then make a go/no go decision.
    • Data Visualization can also be a great help with this – to bolt on a couple of reports to see the data and how different scenarios impact the various facts and dimensions.  This can help us with our conclusions and recommendations.
  • Predictive Analytics – This tool is best used when we have historical data, or representative data set and we want to make a conclusion based on mathematics.   The key is math.  This is not guessing, it is improving the chances of being right with math, or a structured approach to remove risk from decision making.  With a planning tool, we primarily use assumptions to create plans.  We cannot use predictive analytics for all decisions, but for a few specific types of decisions:
    • What transaction details and customer insight can we use to determine credit card fraud?
    • What customer attributes create our buying segments?
    • Which customers are most likely to abandon our offering?
    • What products are most often purchased together?
    • Which taxpayers most likely need to be audited?
  • Optimization Analytics – This is perhaps the most specific advanced analytics tool when looking to solve the specific business question: “With the given parameters of these trade-offs, which mix of resources creates the most effective (or efficient) use of those resources?” This helps make decisions around production locations and product investment.  Like predicative analytics, it is mathematically based (though you may need to make a couple of assumptions as well) in how it determines the answer.

Advanced Analysts

Another reason we lack understanding is analysts.  Our analysts are commonly from the IT team, trained in data structures, or from the finance team, trained in accounting.  Neither is wrong, they just have a default mindset that falls back on using the tool they best know.  This lacks the business/statistical trained person who can both layout the hypothesis and, more importantly, explain the results.

We do not want correlation explained in R-squared values, “63% of the variation of the data is explained by our independent variables.”  While this may make sense to other statisticians and mathematicians, it is lost on the business.   One key value of using a math-based concept is that the explanation should sound more like, “We have found a way to decrease fraud by 3.2%, which should result in a $576K return to the business every quarter” or “We have tested our marketing campaigns and have found three segments that are 25% more likely to purchase based on the campaign, which should result in a payback period of 3 months.”

The right tool with the right skill set is imperative to successfully using advanced analytics.  We also need the discipline to have the right people using the right tools for the right information to drive action.  If you have an algorithm that predicts customer defection, you need to use it and test the results.  It is never going to be perfect, but in most cases, you can bet it will be better than not using it at all.





Meeting Expectations

18 01 2010

In a recent MyMidwest (Midwest Airlines) inflight magazine there is a story by Kimberly Douglas of FireFly Facilitation on Meeting Management.  If we look at a couple of the numbers from Douglas’ research we can begin to quantify the impact of meetings.

38,000 msft employees say that their 5.6 hours per week spent in meetings are unproductive.  That’s over 11 million hours of meetings.  Now if we say the average msft employee makes 100k per year (including benefits), that translates to ~ $50/hr.  If we do the math, that’s ~ $550 million a year in meeting costs.

Microsoft’s 2009 annual income was $58.4 billion which makes just their meeting costs roughly 1% of their annual income.  Let’s make a couple more assumptions: that half of that value is waste (more people than needed, run longer than necessary, etc) and we could reduce that by 10% which should be easy.  The result is ~ $22.5 million.  I am guessing here, but it should be worthwhile to at least try and improve upon meeting management and find some other way to leverage that $22 million.

  • What % of time do you spend in meetings?
  • Would your employees feel that meeting management and effectiveness could be improved upon?
  • What would you do with an additional 1% of your annual income?
  • In what ways could you improve meeting management?




Can we learn from Mite Hockey?

30 12 2009

In youth hockey, the youngest  group (6-8 year olds) is called mites.  Watching a mite hockey game, especially with the players in their first games, is a unique experience.  Watching a kid on a breakaway is everything, an amalgam of excitement, anticipation, worry, dread.  You feel like you can chew off all your fingernails from the time the play starts to when the play ends.

Why? Purely the speed in which the play happens.  It takes too long.

Think about the speed of change within an organization.  If it takes too long, it probably doesn’t happen.  We talk about burning platforms, or Machiavellian-like beheadings.  Employees don’t like change, but what they really don’t like is the not knowing what the other side will look like.  So why do we draw this stage out?

  • Why do we take forever to move some projects?
  • Why do we announce reorganizations, and then take months to make it happen?
  • How much artificial time do we add to a number of the things we do, and what is the value of that time?
  • What is the impact if act twice as quickly as the day before?

If you need to get something done, get the right minds on it, have a discussion and be done with it.





Telling a Story

28 12 2009

“What we’ve got here is a failure to communicate” Luke in Cool Hand Luke (played by Paul Newman)

A friend of mine sent this video along to a number of friends in the Business Intelligence space, saying we need to be better story tellers (Thanks Katie McCray).  We do spend an enormous amount of time talking about data structures, common data dictionaries, ease of use, speed, consistency, etc.  What we typically fail to do is tell our clients how to create information, to tell the story in a convincing enough manner to create attention, and more importantly, enable action.

As analysts we typically spend more time talking about data discovery, and the calculations we used than starting off by making our point.  We try to create 50 charts to explain everything, and not the one chart that most simply illustrates our point.  This not only wastes time, but we lose our audience.

Watch the next couple of presentations you sit through and watch the number of slides that build up to the point trying to be made.  What happens is that with each slide our listeners pay less and less attention as they have lost the point trying to be made.  As learners, we need the point to be made first.  We need to see how it all comes together, then have it explained how to get there.  It provides the context for the point to be made.  People now understand what to listen for and why they are listening.

On a slightly different note, last week I wrote about the housing market and the Dangers of Leading Indicators.  I had to update the post due to a new story with a different viewpoint that ran in the Globe on the 23rd.  Amazing how story tellers can tell such dramatically different things.





Just get it Done – The Art of Ending Procrastination

21 12 2009

All too often, we sit and stare at the pile of things we have to do wondering how we will get through it faster than it seems to be growing.  We try to think strategically, we try to look at similar groups, we walk to the proverbial water cooler to complain about how much we have to do.

There are a number of things we can do…

  • An old manager of mine saw that I was swamped and becoming stressed about it.  She simply said, pick the three things that you have to get done this week and ignore the rest.  What happened is I did a very quick mental prioritization, picked the three things and got them done.  In fact, I had them done that day which then allowed me to get the other things done.
  • Another exercise is to just pick the thing on the top (or bottom of the pile – though the bottom can be a little dangerous) and just get started.
  • Not everything needs to be perfect.  Some things just need to get done, yet we often treat things like they have to be perfect.  And consider perfection is often unattainable, excellent and good enough are usually all we need, especially in terms of the trade off of time and effort.  We consult too many people, draft too many concepts all for an item some one may not really care about.  ABSOLUTELY some things needs to be done with great care, but that is not everything.  The art is applying the right effort to the right things.

“Momentum is the best way to stay on top of things”

  • Been thinking about starting a blog, no better day than today.  Go to Wordrpress (which I use) or Blogger, sign up and start.  It is not the first blog that matters, but the 10th.  Both sites are free, so your only barrier to enter is content and will to get it done.
  • Been thinking about dieting, eat half your lunch today.  Eat half again tomorrow.
  • Need to call a client about an issue, write down what you want from the call and make the call.
  • Need to buy a holiday present, hit Amazon and send it to them.

Just get it done – TODAY!





Predictive Analytics, Business Intelligence, and Strategy Management

9 12 2009

I was having a discussion with one of my clients this week and I thought he did a nice job summing up Predicative Analytics.

So in the World According to Reed (WOTR) – “queries answer questions, analytics creates questions.” My response was “and Strategy Management helps us to focus on which questions to answer.”

Reed Blalock is exactly right, traditional BI is about answering the questions we know. Analytics is really what we create with data mining – we look for nuances, things that might give us new insight into old problems. We use human intellect to explore and test. And yes, there is a little overlap. But what is really happening is that we have a different level of human interaction with the data.

BI is about history, analytics attempts to get us to think, to change, and idealistically to act.

The danger with both of these is that they can be resource intensive. Neither tool, or mindset should be left to their own devices. What is needed is a filter to identify the priority and purpose. This is where strategy management and scorecarding comes into play. We have built out massive informational assets without understanding where, when, and how to use it. We have pushed out enormous reporting structures and said “it’s all there, you can find anything you need” yet we scratch our heads when we see adoptions levels are low.

What we have typically not done all that well is build out that informational asset by how it helps us be more productive along product lines, divisions, sales region, etc. We have treated all dimensionality the same. Why, because it was easy. The BI tools are tremendous in how quickly you can add any and all dimensions.

“But because you can, doesn’t mean you should”

As we built out these data assets, we did not align them to performance themes.  We have gotten better with some key themes, like supply chain management, and human resource management, but what about customer performance?  We might look at sales performance, but that is a completely different lens than customer performance.

How do we determine which assets to start with…what assets do we need to be successful 3-5 years from now, or what are our biggest gaps to close today.  Think about customer value, or employee satisfaction (and that doesn’t mean more HR assets).  Think about your gaps in Strategy.

How often do we discuss…

  • Are our customers buying more or less frequently?
  • What are our best, and better customers doing?
  • What are the costs associated with serving our least profitable customers?
  • Where are our biggest holes in understanding?




People will…

25 11 2009

People will do what they like, or what is easy if they do not understand priority or value.  The hard stuff is messy.  There is too much risk in the hard stuff…





Analytics Process

23 11 2009

Over the last couple of months I have been writing about a handful of US Economic Indicators.  While I have reviewed these over the last few years of my life, I had not done so on a regular basis.  This inconsistent and let’s call it a casual curiosity lead to never really understanding the implications behind the numbers.  Sure I could talk about them, but I could not leverage them.  While not an expert by any means, I can see a lot more now than I did when I started this blog series.

This is similar to ad-hoc analysis without purpose.  We do something once and create a little hype.  When we don’t have any vehicle to take advantage of the newly found ideas, the idea dies as does the learning.

Think about the process of how you handle ad-hoc analytics within your organization:

  • Do you have the right minds constantly looking for new issues?
  • Or, do you put the right minds on solving issues when they arise?
  • Can you name your best analytical minds?  Are they assigned to thought leadership and problem solving?
  • Do you use your analytical minds to challenge the knowledge levels of others?
  • How do you foster new thinking?

 

Consistency breeds familiarity, and familiarity breeds knowledge





Defining the Customer – Brandwagon

9 11 2009

One of my favorite strategy quotes is Michael Porter’s – “The essence of strategy is choosing what not to do.”

It is easy to jump on what we perceive as good deals, or trends.  Take for example my old story about Patagonia after Sarah Palin stated Patagonia as one of her favorite brands.  Instead of jumping on the bandwagon of seemingly a guaranteed increase in sales, they choose to distance themselves from Sarah Palin with the following quote:

“Patagonia’s environmental mission greatly differs from Sarah Palin’s,” Patagonia rep Jen Rapp told the WSJ. “Just wearing the clothing of an environmental company does not necessarily make someone an environmentalist.”

Or when Pepsi comes knocking with a “great deal”…

  • How well do we know our customers?
  • Can we use this to our advantage and draw more people in by being selective in what we offer?
  • When Wal~Mart moves into town…do you change what you do, or let them eat up your profits?
  • How unique are you and what value does that create?







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