Resistance Is Futile
I’ve seen cases where analytical departments were completely decimated because their analytics revealed other divisions' shortcomings and caused big political hoopla. Maybe the analysts should have had better bedside manners; but in some cases I’ve heard about, that didn’t even matter — as the big boss used the results of analytics to scold people who were just doing their jobs based on an old set of rules.
You can guess the outcome of that kind of political struggle. The lesson is that newly discovered “facts” should never be used to blame the followers of existing paradigms. Such reactions from the top will further alienate analytics from the rest of the company, as people get genuinely scared of it. Adoption of data-based decision-making? Not when people are afraid of the truth. Forget about the good of the company; that will never win vs. people’s desire for their job security.
Now, at the opposite end of the spectrum, too much unfiltered information forcing decisions can also hurt the organization. Some may call that “Death by KPI.” When there are too many indicators floating around, even seemingly sound decisions made based on numbers and figures may lead to unintended consequences; very often, negatively impacting the overall performance of the company. The question is always, "Which variable should get higher weight over others?" And that type of prioritization comes from clearly defined business goals. When all KPIs are treated to be equally important? Then nothing really is. Not in this complex world.
Misguided interpretation of numbers leads to distrust in analytics. Just because someone quoted an interesting figure within or without proper context, that doesn’t mean that there is just one version of an explanation behind it. Contextual understanding of data is the key to beneficial insights, and in the age of abundant information, even casual users of analytics must understand the differences. Running away from it is not the answer. Blindly driving the business just based on certain indicators should be avoided, as well. Both extremes will turn out to be harmful.
Stephen H. Yu is a world-class database marketer. He has a proven track record in comprehensive strategic planning and tactical execution, effectively bridging the gap between the marketing and technology world with a balanced view obtained from more than 30 years of experience in best practices of database marketing. Currently, Yu is president and chief consultant at Willow Data Strategy. Previously, he was the head of analytics and insights at eClerx, and VP, Data Strategy & Analytics at Infogroup. Prior to that, Yu was the founding CTO of I-Behavior Inc., which pioneered the use of SKU-level behavioral data. “As a long-time data player with plenty of battle experiences, I would like to share my thoughts and knowledge that I obtained from being a bridge person between the marketing world and the technology world. In the end, data and analytics are just tools for decision-makers; let’s think about what we should be (or shouldn’t be) doing with them first. And the tools must be wielded properly to meet the goals, so let me share some useful tricks in database design, data refinement process and analytics.” Reach him at email@example.com.