Everyone and their brother is involved in data analysis, data science, KPIs. Big Data; it’s data, data, data, everywhere. This includes SW vendors, consulting firms, and data specialists, pushing their solutions, and strategies on data analytics. While there is a lot of value in data analysis, a fundamental requirement to make data analysis successful in an organization is the voice from the top and a buy-in from the executives on the strategy, and goals of the CEO. I am narrating (blogging) a life experience to substantiate my theory.
Several years ago, I was tasked with developing and deploying enterprise-level KPIs and metrics to enable our company to achieve certain organizational and operational efficiencies. The initiative originated from the CEO and the company had engaged a top-tier management consulting firm to help identify the right KPIs and metrics for this exercise.
My team worked with the management consulting firm to define, and refine the metrics and try and get consensus from all the EVPs; I vividly remember a big debate about how to calculate and report Headcount – to get to their target, some of the EVPs were arguing strongly for including, temps, open requisitions, and part-time employees. Next thing you know, there was a big discussion about who would be considered a ‘temp’, versus ‘full time’ – it was all in the definition.
After much debate and discussion, the consulting company finally got the agreement on the definitions of the KPIs and we rolled out the metrics company wide- and right away, the s….. hit the fan. VPs and EVPs whose metrics were not within the target range started attacking the data itself – offense is the best form of defense. Fortunately, we had good data governance and cadence and were able to substantiate the veracity of our metrics with the underlying data for the most part. But it was not without its challenges….
One incident stands out in my mind – I got called by the GM of a large division to his office; in front of him were 3 or 4 excel reports which he was manually cross-checking against the details behind our system generated KPI for spans and layers. He showed me how we had missed 10 employees and his list had 10 more employees than our KPI had captured. I was caught a bit off guards because I did not expect a GM to be sitting down and manually validating data. Upon recovering from the shock, I reasoned with the GM that it was only 10 counts, and not a big deal, given the data volume size. And here was his response – and this is the punch-line to this whole blog, and provides perspective to the blog title. He said:
“Yes, it may only be 10, but with the 10 included, my KPI goes up from 3.75 to 3.80 – 3.80 is closer to the 4.0 target, looks better, and easier to explain than 3.75”.
The GM, like many of his peers, had not bought into the whole exercise and its underlying cause, and without the right tone from the top, and not being aligned with the CEO on the corporate objectives, was looking @ this as something he had to get a ‘pass’ on. This is the challenge with rolling out enterprise-wide analytics; until and unless there is buy-in about the intent of the data, there will be resistance to adoption and acceptance. Else, such exercises and their outcome will be viewed as a stick instead of a tool for improvement.
I have had more success in deploying analytics by providing senior execs and GMs data and analytics that they can use internally (within their department) to manage their business better – for example, spend analytics, revenue and margin trends, etc. These internal metrics/KPIs are not viewed as a threat because these are not corporate mandated, not used to compare the different BUs, and do not have to be presented to the CEO during quarterly review in front of a bunch of people; instead these are analytics and metrics used to fine-tune the operations of the specific division and driven/mandated by the GM/EVP themselves. If these metrics/analytics help the individual(s) achieve their goals, they will help promote the program to deploy corporate metrics (since they now view these as enablers instead of a threat).
Hence the title of the blog……