Strategy plan

For today:

• 2 - page, single spaced Org Readiness Assessment due by end of day for your assigned company in case exercises • Describe the baseline using information in case backgrounders, and any additional light research on the capabilities of such companies • Connection between today’s content and other courses (Org Context, Change) • This course focuses on applications for strategic leadership • Some material to be refreshed prior to case study applications On the journey to transformative analytics ….

Ask the right question Find the best solution through analytics Rally the organization to act Optimize by learning and adapting IMPACT!We are HERE A typical situation You have a breakthrough insight It should have been welcomed and adopted …… …. but was not Why might this happen? Individual exercise List 3 - 4 reasons why valuable analytic insights might not be acted upon by the organization Possible barriers to analytic adoption • Awareness: no clear path to the decision - makers • Context: recommendations did not consider all factors (i.e.

data does not always tell the full story) • Black - box: the intuitive basis for recommendations is not clear • Communication: results not understood by decision makers • Accountability: roles and responsibilities for taking action are not defined • “Paralysis”: belief that analysis must be perfect to make a decision How to address these barriers • Create awareness: org models and operating processes • Full context: cross - functional dialogue, active listening • Create transparency: communicate clearly with a “narrative” • Create accountability: use role/responsibility frameworks to develop an action plan • Create a “fit for purpose” mindset: what level of precision is needed? Achieving Business Outcomes from Analytics “Working at the front and back ends of the value chain is a particular challenge for most analytics functions because the nature of these tasks differs significantly from the technological jobs for which these individuals have largely been trained” Economist Intelligence Unit, 2016 Analytics as a competitive advantage The ability to make organizational decisions in a timely manner can be a genuine competitive advantage.

• Strategy can be implemented sooner • Free up time spent seeking, processing, and communicating even more data • The decision makers don’t need to wait for more information.

Quality, speed, and execution of decision making define top - performing organizations, especially for critical operating decisions that require consistency and speed https://www.eremedia.com/tlnt/want - a - competitive - advantage - get - your - team - to - make - faster - decisions - 2/ Evolution of how analytics is practiced From static …… ….. to dynamic and interactive Overview of Big Data Analytics Top - down decision - making: does it work?

https://www.youtube.com/watch?v=TpBcwGOvO80 https://www.youtube.com/watch?v=ugN5aD5p2NU Example: baseball - the Oakland A’s Today we will review approaches to engage the organization • Organizational models with pros and cons • Techniques for effective dialogue • Communication of technical results • Frameworks for accountability Organizational Models and Constructs for Analytics How does the org model impact analytic maturity?

• Aligns to different types of decision - making cultures • Drives speed/scale of adoption and sustained use of analytics • Drives efficiency and innovation Embed vs. centralize the analytics team? That is the question “The structure of analytics in large organizations can take many forms — from having a gazillion analytics micro - teams embedded in each function or BU, to completely centralized analytics at the corporate level. What is the right strategy? What should your organization do?” http://www.forbes.com/sites/piyankajain/2013/02/15/to - centralize - analytics - or - not/#91b9d3270483 Organizational Models Distributed • Analysts scattered across the organization in different functions and business units with little coordination Functional • Analysts located in the functions where the most analytical activity takes place, e.g.

marketing or the supply chain CoE /Federated • Central group coordinates the activities of analysts who are organized within business units and functional groups Centralized • Central group serves the diverse needs of all business units and functions, and sets the analytical direction of the organization Individual exercise Take 5 minutes to think about the pros and cons of functional, federated and centralized models Group exercise List the pros and cons of functional, federated and centralized models with respect to:

• Ownership • Objectivity • Agility • Efficiency • Big picture (vs. siloes) Stakeholders • Individuals or groups who are impacted by, or can impact, the work or its outcomes • Understand their stake in the work, and how they are important to the work • Context and critical input • Source of funds or resources • Can impact success or failure by action or inaction • Understand what they require from the success or failure of the work’s execution or outcomes • Personal gain • Organizational gain Stakeholder Types Upward - Influence of senior management, especially sponsor, over the activity Downward – Influence of team members to achieve the objectives and outcomes of the activity Outward – Stakeholders outside the entity, e.g.

users, regulators, public Parallel – Peers of the program lead within the organization Culture will drive the importance and focus on different stakeholder types Refresher from Applied Analytics in an Org Context Prioritization of Stakeholders Prioritize importance of stakeholders at a given point in time based on • Input – expertise and feedback is needed • Influence – authority to permanently change or stop the project • Proximity – degree of involvement of the stakeholder in the project • Urgency – importance of the work or its outcomes to the stakeholder and their preparedness to act to achieve these outcomesRefresher from Applied Analytics in an Org Context Understand your stakeholders Empathy – where are they coming from?

What motivates them? Refresher from Applied Analytics in an Org Context Small Group Exercise (1 hour) • Review case study information packs for assigned industry • Develop a stakeholder engagement plan to review your recommendations • Identify one representative to read out Communication strategies Analytics adoption by the Sonoma Stompers http://www.nytimes.com/2016/04/24/opinion/sunday/what - happens - when - baseball - stats - nerds - run - a - pro - team.html?_r=0 https://hbr.org/2016/05/what - a - minor - league - moneyball - reveals - about - predictive - analytics ) Big takeaways from their experience Effectively communicating insights is as important as finding them!

• They were rigorous around every aspect of their analyses, except selling them.

• Lindbergh and Miller behaved as if their evidence — or, more accurately, their presentation of the evidence — was obvious or self - explanatory. It wasn’t.

Recognize, remember and respect what is not being measured • … as the season wore on, what wasn’t being measured — self - motivation, team chemistry, manager/player compliance with statistical insight — assumed greater importance.

Predictive analytics create organizational winners and losers, not just insights Memorable quote on the importance of narrative We sold our story as something imposing — “data analytics” — and we made it about us. We should have sold it as providing them information, and made it about the team. That would have fit into their view of the sport — that we were trying to give them the same resources major - league players like Miguel Cabrera and Clayton Kershaw get. With other sabermetricians , more data wins arguments. In the dugout, a good story does.

Sam Miller, Sonoma Stompers (2016) http://www.nytimes.com/2016/04/24/opinion/sunday/what - happens - when - baseball - stats - nerds - run - a - pro - team.html?_r=1 For example:

“In the season’s final weeks, we changed course, focusing less on data and more on story.

When we started using our closer in tight spots as early as the fifth inning — instead of the ninth, as every other team does — we kept our message as simple as could be: The game is on the line, so let’s take the bad pitcher out and put the good one in.

Who could argue with that? We still used reams of charts and graphs to make these decisions, but those stayed between me and Ben.” Sam Miller, Sonoma Stompers (2016) http://www.nytimes.com/2016/04/24/opinion/sunday/what - happens - when - baseball - stats - nerds - run - a - pro - team.html?_r=1 Start with audience in mind and your purpose Who are the consumers of information?

What do they already know?

What are you trying to convey?

What is the goal? Are you informing, gaining alignment, seeking a decision? Barbara Minto Pyramid Principle In the introduction, you prime your audience with the solution.

Begin with the situation . Introduce the complication — which inevitably gives rise to a number of questions — then finally the answer . This is the top of your pyramid: Pyramid Principle Example Jeff Bezos Example 2016 Letter to shareholders • Culture is enduring, and Amazon has a unique culture that values experimentation • The risk is high but so is the payoff • What are the drivers of Amazon growth?

• Prime, Marketplace and AWS are three big offerings Data visualization Why is this important?

Our brains are wired for pattern recognition and pattern matching.

Hans Rosling Beware the pitfalls of data visualization People trust visual images.

Make sure it’s the right picture. Avoid misrepresentation. Decide what information you need and how to present it Which information is the most important?

What is most important to measure? What are the best metrics for what you are trying to convey?

Create structure and flow to the presentation Hans Rosling data visualization Understand Content and Purpose Is the content conceptual or data - driven?

CONCEPTUAL DATA - DRIVEN FOCUS IDEAS STATISTICS GOALS SIMPLIFY, TEACH INFORM, ENLIGHTEN “ Here’s how our “ Here are our revenues organization is structured” for the past two years.” Is the purpose declarative or exploratory?

DECLARATIVE EXPLORATORY FOCUS DOCUMENTING, DESIGNING PROTOTYPING, ITERATING, INTERACTING, AUTOMATING GOALS AFFIRM CONFIRM “ Here is our budget by “ Let’s see if marketing investments department.” contributed to rising profits” DISCOVER “ What would we see if we visualized customer purchases by gender, location, and amount?” Berinato , S.(2016). Visualizations that Really Work. Harvard Business Review , 94, 92 - 101. Visualization Framework Conceptual Data DrivenDeclaratory Exploratory Principles of Graphical Excellence • Well designed presentation of data • Communication of complex ideas with clarity, precision and efficiency • Gives viewer the greatest number of ideas in the shortest time and smallest space • Almost always multivariate • Tells the truth about the data E. Tufte , The Visual Display of Quantitative Information Source of 1854 London Cholera Epidemic ACA vs AHCA - What is the story?

NY Times March 8, 2017 What is the story?

NY Times March 8, 2017 Small Group Exercise (1 hour) groups • Prepare to present your insights and recommendations to the specified audience • Develop a clear, compelling narrative to communicate your findings and recommended actions • Identify one or more presenters to read out Adaptive Leadership Adaptive leadership is needed for success in the marketplace Ask the right question Find the best solution through analytics Rally the organization to act Optimize by learning and adapting IMPACT!We are HERE What is adaptive leadership and what is it not?

“The leader of a company needs to have a decision tree in their head – if this happens, we go this way, but if it winds up like that, we go this other way” “I think that the minute you have a backup plan, you’ve admitted that you’re not going to succeed” Sean Parker on why Mark Zuckerberg was successful with Facebook Elizabeth Holmes on her leadership philosophy for the success of Theranos Adaptive leadership in action … or not Small initial investments to resolve uncertainties Big investments without testing assumptions Shortest lifetime from IPO to bankruptcy Adaptive leadership through the Lean Startup framework Lean Startup practices for adaptive leadership 1. Eliminate uncertainty 2. Work smarter, not harder 3. Develop an MVP (minimum viable product) 4. Validated learning http://theleanstartup.com/principles MVP A minimum viable product is “that product which has just those features and no more that allows you to ship a product that early adopters see and, at least some of whom resonate with, pay you money for, and start to give you feedback on”.

Examples of MVP • Explainer Video MVP - short video that explains what your product does and why people should buy it. Dropbox • Landing page MVP - quickly communicate the value of your offering, diffuse objections, and call the visitor to action. • Wizard of Oz MVP - front that looks like a real working product, but you manually carry out product functions. Zappos • Concierge MVP – manual service that consists of the same steps people would go through with your product. Food on the Table • Piecemeal MVP – hybrid of Wizard of Oz and Concierge. 3 Tiny Habits • Crowdfunding MVP • Single Featured MVP – start with simple feature. Dropbox and Google http://scalemybusiness.com/the - ultimate - guide - to - minimum - viable - products/ Small Group Exercise (30 min) groups • Develop an adaptive plan around your recommendation • What could go wrong?

• How can this be tested on small scale?

• If wrong, what corrective action can be taken?

(contingencies) Congratulations!

Ask the right question Find the best solution through analytics Rally the organization to act Optimize by learning and adapting IMPACT!

Define the problem Structure the problem Engage stakeholders Lead adaptivelyAnalytic Maturity Capabilities needed We are HERE Today’s assignment • Complete a 2 - page org readiness assessment for your assigned company • Integrate pre - session readings with content from Days 1 & 2 • Upload into Canvas by 11:59PM tonight Analytics Readiness StatSlice 2013 White Paper