Keys to Creating an Analytics-Driven Culture

The First Step in Information Management

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Keys to Creating an Analytics-Driven CultureJanuary 4, 2018

Today’s Conversation: Analytics-Driven Culture

Analytics-Driven vs. Data-Driven

Why Culture Matters

Engaging Senior Leaders’ Support of Analytics

Engaging Stakeholder Support of Analytics

Analytics-Focused Vision Statement

Communication Best Practices for Culture Change

Approaches for an Analytics-Driven Culture

Key Takeaways

Q&Apg 2First San Francisco Partners www.firstsanfranciscopartners.com© 2018

Presenter

Presentation Notes

About the Webinar Changing company culture takes time, energy and focus, as well as consistent reinforcement long after the breakrooms’ company culture posters start to fade. Creating an analytics-driven culture may be even harder to grow and sustain. Yet the rewards are vast for companies whose culture embodies an analytics-first mindset — and for those who use the derived insights to improve operational efficiency and decision-making, generate new revenue and prevent risk and fraud. The webinar will offer advice and real-world examples on how to: - Develop and utilize an analytics-focused vision statement - Engage senior leaders to support analytics as a business problem-solver - Communication best practices to engage participants in the culture change - Use tried-and-tested best practices and approaches to build an analytics-driven culture

Are Data-Driven and Analytics-Driven the Same?

Data-driven gets lots of attention.

What does it mean?Extending the value of an organization’s information infrastructure …through the interactions of people, technology and business processes …to move to new levels of productivity and effectiveness.

But analytics-driven is important, too, and is a subset of data-driven.Data-driven means business decisions are being made from a quantitative approach, and when analytics are applied, the resulting pattern are used to add a qualitative aspect to decision-making. We supplement traditional qualitative decision-making with an additional quality – the information provided by the algorithm.

pg 3© 2018 First San Francisco Partners www.firstsanfranciscopartners.com

Presenter

Presentation Notes

Data-driven gets lots of attention. What does it mean? Extending the value of an organization’s information infrastructure … through the interactions of people, technology and business processes … to move to new levels of productivity and effectiveness. But analytics-driven is important, too, and is a subset of data-driven. What does it mean? (finesse SAP’s long definition) Data-driven decision making refers to the process of making business decisions with an emphasis on a quantitative approach, which uses number crunching and data processing to yield results as number-based information. Analytics is defined as the discovery and communication of meaningful patterns in data. So analytics-driven decision making takes decisions one step beyond, and into qualitative analysis. This next step combines quantitative and qualitative data and adds a layer of analysis, which provides an additional level of consideration and shows varying factors that influence the decision-making approach. �

Polling Question

How would you rate your organization’s culture,related to its being analytics-driven? Nirvana state: We’re analytics-driven like you wouldn’t believe! Work in progress: We’re on the path to having an analytics-

driven culture. We’re clueless: And we don’t know where to begin! I’m not sure how to answer this and/or don’t understand the

meaning of analytics-driven.

pg 4First San Francisco Partners www.firstsanfranciscopartners.com© 2018

It’s the “Golden Age of Data,” but Many Organizations …


Find themselves unable to deliver relevant, timely,

efficient data for information and analysis

Have data strategies and cannot execute on them

Aren’t reaping the rewards of their Data Warehouses

and Data Lakes

Are facing unacceptable risk embedded in their

departmental data stores

Are realizing their total cost of data ownership is too

high, compared to the value they get

from using it Aspire to be data-driven, but find it out of reach

Over-buy technologies, yet under-deliver

true value

Presenter

Presentation Notes

However, in spite of this “golden age” of data, there are challenges. Delivery of relevant data is usually done departmentally, as IT or central BI areas take to long, or data is not useful for the audience using it. Many companies declare that data driven is the way to go , but fail to define it or achieve anything looking like data-driven. It is a running joke in may large organization that they have “one of everything” when it comes to reporting and BI tools. When you combine these diverse applications of technology with each business area essentially acting like its own IT area, spending a lot of time gathering data for reporting or analysis, you develop cost of ownership numbers that are frightening Lastly, the scattering of data, while meeting user needs, is placing excessive risks on organizations .

www.firstsanfranciscopartners.com

Why Culture Matters

What is Culture?

Assumptions, beliefs, values and behaviors of an organization’s employees, supervisors and leaders.

“The way we do things around here”


Presenter

Presentation Notes

What is the culture within your organization? How is that culture facilitated, fostered, spread and reinforced? Culture is about the way people behave in your company We hire people People create your success Virgin Airlines: Our mission statement is simple, yet the foundation of everything we do at Virgin Atlantic Airways... to embrace the human spirit and let it fly. �REI: At REI, we inspire, educate and outfit for a lifetime of outdoor adventure and stewardship.

What Drives Culture?

pg 8

The Result Force

Neocortex

Limbic

*Adapted from Dan Barnett (Primavera Company), Make or Break Culture © 2018 First San Francisco Partners

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Presentation Notes

Most of the time we focus on Results. I’m guilty as well. I’ve done many presentations on metrics, progress metrics, outcome metrics, etc. And we focus on these results. But they are very hard to achieve if we don’t have a belief system that drives the behavior that produces the results So we have to start at the core of what drives us as humans, the Limbic system


Engaging Senior Leaders’ Support of Analytics

Characteristics of a Supportive Executive

Understands and articulates the vision for the “what and why”of the analytics initiative

Demonstrates perseverance when challenges arise and can remediate

Provides visible support throughout the life of the analytics initiative

Holds leaders and teams accountable to the initiative’s goals and objectives

Advocates for overcoming the organization’s resistance to change

Communicates effectively, keeping people informed and engaged


Presenter

Presentation Notes

Analytics leaders should: Connect emotionally with stakeholders and engage with both collective and personal benefits to increase engagement and to ensure that there is both organizational and personal buy-in to decisions. Avoid the psychological responses that inhibit engagement with data by communicating analytics outputs in ways that take such reactions into account. Apply critical thinking when presenting analytics results, to overcome logical fallacies and decision biases. CDOs, CIOs and other data and analytics leaders must address: Business value: Identify and communicate the business value of data, championing the measurable value of the organization's information assets. Culture: Address the cultural change impacts of a data-driven approach. Ethics: Proactively manage the ethical implications of data and analytics

pg 11

Purpose: Increase Engagement

Use this framework to identify gaps in stakeholder engagement and change strategies that could be put in place to close those gaps.

T I M EStatus Quo Vision

COM

MIT

MEN

T / E

NTH

USI

ASM

High

ContactI’ve heard about this program/project.

Low

I know the concepts.

Awareness

I understand how the program/project positively impacts

and benefits me and the organization.Positive Perception

This is how we do business.Institutionalization

UnderstandingI understand what this means to me and the organization as a whole.

AdoptionI am willing to work hard to make this a success.

InternalizationI’ve made this my own and will constantly create innovative ways to use it.

© 2018 First San Francisco Partners www.firstsanfranciscopartners.com

Discussion Points to Ensure Leadership Alignment


Question PurposeHow does the Analytics Strategy contribute to the company vision and strategies?

Measures alignment around your company’s vision (or lack thereof), the Analytics Strategy goals and the true purpose of the anticipated changes.

What do you see as the major issues to successfully implementing it? What can be done to address them?

Provides perspective on what’s critical to successful implementation (specific actions, issues or processes). Measures alignment around what needs to be done now to improve the chances of success.

From your perspective, what will be different when your Analytics Strategy is fully operational?

Measures alignment around perceptions of the Analytics Strategy’s impact on your organization.

What is your definition of success for the Analytics Strategy? Determines alignment among leaders as to what success with the Analytics Strategy means. Common definition of success drives common actions and behaviors.

Who’s accountable for delivering on its anticipated results? Measures alignment around roles and responsibilities and who is ultimately responsible.

What do you think your role is as a leader in making the Analytics Strategy initiatives a success?

Measures alignment around leadership accountability and where authority for decisions will be situated.

What are your biggest concerns about the changes that the Analytics Strategy will drive? How would you address those concerns?

Provides some insight into what the concerns are among leadership. Measures degree of alignment about areas of concern.

What do you think are the best ways to encourage positive reception of anticipated changes by key stakeholder groups inside and outside of our organization?

Measures alignment around most effective stakeholder approaches.


Engaging Stakeholder Support of Analytics

Stakeholder Analysis Guide


WHAT IS A STAKEHOLDER? WHAT IS THEIR ROLE? HOW WILL THEY

REACT?

WHAT WILL BE THEIR PRIMARY

CONCERNS?

WHAT DO WE NEED FROM THEM?

HOW SHOULD WE WORK WITH THEM?

A stakeholder is any organization or person that:

Can influence the change

Is affected by the change

Stakeholders can be:

Individuals Senior leadersEmployee groups,

such as branch managers

CommitteesBranch officesCustomersGovernment or

other regulatory agencies

ProducersObligees

Identify each stakeholder’s role or roles. Will this stakeholder:

Need to approve resources and/or decide whether change can proceed (a sponsor or gatekeeper)?

Need to change as a result of the effort (a target)?

Need to implement changes or convince others to change (an agent)?

React to or judge the success of the effort?

Need to be an advocate of the effort (a champion)?

Perform work that can influence the success of the effort (a resource)?

How will the results of the effort likely impact the stakeholder? Will they benefit or be adversely affected?

Given the likely impact and prior behavior, how are they likely to react?

Vocal, visible support?

Cooperative, quiet?On the fence? Say OK but be

obstructive or complain behind the scenes?

Express concerns vocally

What are the stakeholder’s primary concerns?

What do they need or expect from the change?

What might influence whether they’re supportive of the change?

What will this stakeholder need to feel informed, involved, prepared or validated during the change?

What are the red flags or hot buttons for this stakeholder?

What do we need from this stakeholder?

Approval/resourcesVisible support/public

endorsementAccess to themAccess to people on

their team Lack of interference

with or blocking of the effort

InformationTask completion FlexibilityChange in behavior

Given what we know, how should we work with this stakeholder?

How will we prepare them for the change?

How will we communicate with them?

How will we address their needs/concerns?

Do we need to learn more about their needs, concerns or likely reaction?

Should they be part of the change team directly or indirectly involved (representative on team, solicit input or provide regular feedback)?

Engagement strategy: Focused effort must be given

to high-priority groups Provide sufficient level of

information to less influential groups to ensure buy-in

Move people and or groups to the right by trying to increase their level of interest

Forms the foundation of your engagement/communication strategy

pg 15

Stakeholder Engagement Strategy

MeetTheir Needs

KeyPlayer

LowPriority

ShowConsideration

Stakeholder Influence

Stak

ehol

der I

nflu

ence

Stakeholder Interest

© 2018 First San Francisco Partners www.firstsanfranciscopartners.com

Presenter

Presentation Notes

What is it? Simple quadrant used to analyze stakeholders The more influence a group/person has, the higher they are placed on the vertical axis The more interest they have in the project, the further out they are placed on the horizontal axis How is it used? The location of a person and or group on the quadrant is a key driver for the required engagement strategy for that person and or group Least Important: Inform via general communications, i.e. newsletters, email blasts, website, aim to move into right hand box Show Consideration: Make use of interest through involvement in low risk areas, keep informed and consult on interest area, potential supporter / goodwill ambassador Meet their needs: Engage and consult on Interest area, Try to increase level of interest, aim to move into right hand box Key player: Focus efforts on this group, involve in governance decision making bodies, engage and consult regularly


Analytics-Focused Vision Statement

Analytics Vision Statement

An image of the desired future Should be inspirational, rich and evocative High-level and strategic

Data and information will be our main driver of organic growth. Data must enable the easy

measurement of ROI, while allowing for application of advanced analytics.


Presenter

Presentation Notes

Add Schwab Vision What is it? How would we use one for analytics-driven culture? Target future state Sample vision statement: tbd tbd tbd


Communication Best Practicesfor Culture Change

5-Step Framework to Align an Analytics-Driven Organization


Results: Business Impact the Program Delivers

Presenter

Presentation Notes

This communication framework provides an excellent and fairly simple way to package communication for your data initiative. This can be adapted for any aspect of EIM. This is an adaptation of the Bridges 4Ps, tying vision as an important driver of the information provided to those impacted through the 4Ps structure. Presents a simple and effective framework for crafting the content and messaging to unify an organization around the vision of EIM in an organization. It helps answer questions such as: How do you communicate an EIM to people who don't have data-centric roles? At what level in the organization is this messaging relevant? Who is the audience? How does the messaging drive behavior change? How do you gain agreement with a diverse group of stakeholders? Etc . VISION State the aspiration, the BHAG (Big, Hairy, Audacious Goal) What is the desired future? What is the value of the future state to the company? How does that future state move forward the overall business? High-level, strategic statement of a Goal PURPOSE Explain why we’re doing what we’re doing - the purpose behind the outcome What is/was the problem? Who said so and on what evidence? What could occur if no one acts to solve it? What could happen if that occurs? Why you are executing your Vision PICTURE Paint the picture of how the future will look and feel once EIM is implemented. How are people going to get their work done and interact with each other? How will a day be organized? Future State Principles PLAN Lay out the plan for achieving the future state; the steps and timeline in which people will receive information, training, and the support they need to transition to the future Orient managers to tell employees how and when their worlds are going to change Start with where people are and work forward What does this mean to me? What EIM is facilitating Roadmap for Client Group specific roadmaps Participation Establish each person’s part in both the future state and the plan to get there Show associates their roles and relationships to each other in the future Show associates what part they play in achieving the future and the transition process to get there All this helps them let go of the past and focus on the future What is my role? Who does What Across the Client Within appropriate data aspect of EIM

Communication Planning


Start your communication process early.

Create an identity for your initiative that the organization cangrab on to.

Build repeatable, key messages around it.− Be prepared to repeat those messages often.

Build a formal communications strategy, with pre-definedchannels, groups and messages.

Remember to customize your messages by the stakeholder groups impacted.− Different groups may require different messages.

Test to make sure that your messages are getting out there and that awareness and understanding are building.

What

Why

When

Where

How

COMMPLAN

Translating Data Into Business Value


Communication is key to maintaining commitment.

The right metrics help maintain alignment.− Ensure there is some way of measuring how the improvement in data

is helping stakeholders progress toward their goals.− What information do you need to track and measure to those goals?

Translate the value statement into the language of the recipient.

Reports should measure results of progress, effectiveness and efficiency.

Embed reporting progress and other measures into the communications plan; i.e., make it a formal event.

Presenter

Presentation Notes

Metrics have no value if they aren’t aligned to the interests of a stakeholder


Approaches for anAnalytics-Driven Culture

Analytics-Driven Examples

Large Investment Firm − Sandbox approach (in business area)− Enacted visible and very profitable results − Intercepted growing antagonism between IT and business areas− Started to build out Data Governance and leadership training − Working through organizational changes

Large Manufacturing Firm− Management of analytics and infrastructure of massive IoT effort − Organizational change management− Data Governance − Business alignment


How Analytics-Driven, Data-Driven and Data Management Are Aligned


Enabled by Analytics

… supported by Managed

Data

… of suitable quality

… governed and certified

What You Can Do In 2018

As a senior leader you could …− Educate yourself on how to be a good sponsor. − Structure the business to be aligned with analytics. − Ensure that your analytics-driven vision is effective.

As a manager or team lead you could …− Clarify the meaning of analytics-driven with your team.− Translate analytics-driven vision into action. − Gather and share stories about the power of analytics.

As an individual contributor you could …− Share ideas on how to have an analytics-driven mindset.− Share lessons learned and successes about analytics.

As someone very new to this topic you could …− Educate yourself on the topics of analytics and culture change.− Look for ways to grow your expertise to fill any gaps.− Reflect on experience you’ve had with companies that changed their culture.

What learnings can you bring to your current team and organization?

© 2018 First San Francisco Partners www.firstsanfranciscopartners.com pg 25

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Keys to Creating an Analytics-Driven Culture

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