Analytics Culture: The Secret to Success

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 to greet a customer or
to deliver a drink, are reported to
management on Sunday. The very next
day, the property’s general manager
can expect a call if the revenues are
down compared to the same week the
previous year. 2
After an analysis of its loyalty
program data showed that 7% of
customers were responsible for 43%
of its sales, Best Buy redesigned its
store layout to meet the needs of
those loyal customers. Further, this
giant retailer quantified the value of
employee engagement to customers’
in-store experience — a 0.1% increase
in engagement is worth more than
$100,000 in a store’s annual income —
to 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 to make smarter
decisions faster. Their leaders are in
synch on how to 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 top 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 tons
of data on the consumer products
market. We analyze the hell out of
it. The problem is, we don’t change
anything as a result of it.” 4
Access to robust data is essential to
progress toward analytical maturity.
The value of the data is unlocked,
however, when companies develop
the capabilities to analyze what
they gather. Do your employees
know how to use scenario-based or
workflow analysis tools? Can they
overcome organizational barriers
and build momentum behind their
positions? Capabilities such as these
are necessary to 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 to one of a
high-performing organization with
a culture that understands and
celebrates the capabilities required to
win with analytics. In a culture such
as this, respect for data coupled to 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 to success — the “secret
sauce” — of analytics competitors. Due
to the hard work required to build and
maintain such an analytics culture,
succeeding in this endeavor raises the
table stakes in the market. Accenture
uses the term “organizational
effectiveness” to structure the
multifaceted endeavors required to
foster an analytics culture.
One facet of organizational
effectiveness, for example, is
promoting and reinforcing top leaders
with analytical vision, passion, and the
ability to nurture leaders at all levels.
Another is developing, engaging, and
organizing talent with the right skill
sets. The design of the operating model
and the processes used to problem
solve and execute at a strategic level
are covered by this term, as are the
processes and software required to
embed analytical tools, methods, and
behaviors. The magic occurs when the
interpersonal and process strengths of
an innovative, results-focused culture
are combined with the technical and
data-mining skills required to deliver
high performance.
3