Given the buzz around analytics, why are so few organizations getting it done? According <strong>to</strong> a recent Accenture survey of 600 executives, 8 out of 10 companies have not achieved their goals in analytics. And only 1 out of 12 respondents expressed satisfaction with the return on their investments. 1 2
A quick scan of how high-performing organizations use analytics answers that question. At Harrah’s, now Caesars Entertainment, service delivery metrics, such as the average time it takes <strong>to</strong> greet a cus<strong>to</strong>mer or <strong>to</strong> deliver a drink, are reported <strong>to</strong> management on Sunday. <strong>The</strong> very next day, the property’s general manager can expect a call if the revenues are down compared <strong>to</strong> the same week the previous year. 2 After an analysis of its loyalty program data showed that 7% of cus<strong>to</strong>mers were responsible for 43% of its sales, Best Buy redesigned its s<strong>to</strong>re layout <strong>to</strong> meet the needs of those loyal cus<strong>to</strong>mers. Further, this giant retailer quantified the value of employee engagement <strong>to</strong> cus<strong>to</strong>mers’ in-s<strong>to</strong>re experience — a 0.1% increase in engagement is worth more than $100,000 in a s<strong>to</strong>re’s annual income — <strong>to</strong> inform its investments in the workforce. 3 Quick action is a distinguishing feature of examples such as these. High performers do not simply gather and analyze data; they use the resulting insights <strong>to</strong> make smarter decisions faster. <strong>The</strong>ir leaders are in synch on how <strong>to</strong> employ analytics in the service of their strategy, and that vision percolates down through the organization. As a result, middle managers measure the right metrics, make decisions based on the best data available, and understand the significance of immediate action on the basis of those decisions. No technological solution, simply layered on <strong>to</strong>p of existing processes and culture, can achieve these results. Further, existing analytical talent in organizations rapidly grows frustrated with the added complexity. As one market researcher said, “We buy <strong>to</strong>ns of data on the consumer products market. We analyze the hell out of it. <strong>The</strong> problem is, we don’t change anything as a result of it.” 4 Access <strong>to</strong> robust data is essential <strong>to</strong> progress <strong>to</strong>ward analytical maturity. <strong>The</strong> value of the data is unlocked, however, when companies develop the capabilities <strong>to</strong> analyze what they gather. Do your employees know how <strong>to</strong> use scenario-based or workflow analysis <strong>to</strong>ols? Can they overcome organizational barriers and build momentum behind their positions? Capabilities such as these are necessary <strong>to</strong> drive transformative change fueled by analytics. As talent is hired and capabilities expand, pockets of analytical excellence develop in companies. Typically, however, these pockets produce little of strategic value because their scope is bounded by their unit or department. Opportunities that require multifunctional involvement are missed. Contrast that scenario <strong>to</strong> one of a high-performing organization with a culture that understands and celebrates the capabilities required <strong>to</strong> win with analytics. In a culture such as this, respect for data coupled <strong>to</strong> a pervasive curiosity results in people asking questions such as, “Do we think this is true, or do we know?” 5 This is the key <strong>to</strong> success — the “secret sauce” — of analytics competi<strong>to</strong>rs. Due <strong>to</strong> the hard work required <strong>to</strong> build and maintain such an analytics culture, succeeding in this endeavor raises the table stakes in the market. Accenture uses the term “organizational effectiveness” <strong>to</strong> structure the multifaceted endeavors required <strong>to</strong> foster an analytics culture. One facet of organizational effectiveness, for example, is promoting and reinforcing <strong>to</strong>p leaders with analytical vision, passion, and the ability <strong>to</strong> nurture leaders at all levels. Another is developing, engaging, and organizing talent with the right skill sets. <strong>The</strong> design of the operating model and the processes used <strong>to</strong> problem solve and execute at a strategic level are covered by this term, as are the processes and software required <strong>to</strong> embed analytical <strong>to</strong>ols, methods, and behaviors. <strong>The</strong> magic occurs when the interpersonal and process strengths of an innovative, results-focused culture are combined with the technical and data-mining skills required <strong>to</strong> deliver high performance. 3
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