Analytics is the set of practices which simultaneously uses statistics, computing platforms and operational market research in order to identify findings in large volumes of data.
- Most companies we know today were born at a time when information was scarce. Higher costs, together with wide periods of time, tended to use information as a support for already-made decisions instead of the base over which decision were taken. Those bad habits were internalized in company’s cultures, generating a diverse array of problems, such as:
- Discussions based on people instead of ideas.
- Performance metrics which have nothing to do with the company’s bottom line.
- Same mistakes occurring over and over again.
- Lack of creativity (unlike the common belief that information kills creativity, information provides a better environment for business oriented creativity).
- Creation of the HIPPOS culture (Highest paid people opinion).
Today’s biggest problem is that more than 90% of decision makers are drowning in data and, for some reason, they are trying to solve the problem in the same (wrong) way: hiring data scientists. However, the problem is not caused by a lack of knowledge, but because of the lack of Data Driven components in their culture. That’s why almost every endeavor towards solving the data problem by hiring Data Scientists fails.
The right approach to the problem is implementing an Analytics Governance department. It centralizes the generation of findings, based on the objectivity of the information within organizational structures, in a specific area or department that works out of the productive structure of the organization.
Let’s disaggregate the definition for a better understanding:
- Centralizes the generation of findings: If everyone owns a task, no one does it. In order to achieve an objetive, someone has to be responsable for coordinating the resources towards its achievement. Centralizing an activity has several advantages like Focused vision, Fast Execution, Reduce conflict and easier Control and Accountability.
- Based on the objectivity of the information: Information is what allows decision-makers to base their decision over a scenario with a specific certainty and risk. The lack of information gives place to uninformed opinions and inferences that leads to risky decisions. It also leads to discussions based on “people” and not on “ideas”.
- Within organizational structures: Understanding organizational structures are key to implement an Analytics Governance department. All the interactions which allows the company to achieve its results are related to some of its components, so you can’t develop an information system without understanding the organization structure first.
- In an specific area or department: That works out of the productive structure of the organization: In order to have a view of the company as a whole, understanding its interactions, formal and informal communication flows, decision-making flows and restrictions, its vital that all activities are centralized in an area which has an overall view of the organization.
How to develop a Google Analytics Area:
- Inicial Assessment: The first layer in the Intellignos Analytics Governance model is understanding the company structure, interactions, formal and informal decision making flows, centralization or decentralization of decisions, reporting flows and each area’s goal towards driving the company to its main objetive.
- Analytics Governance department design and process development: Development of department profiles, objetives, processes, formal and informal communication flows and implementation Gantt Charts.
- Custom Training cycles: We implement a cycle of trainings focused on raising the level of knowledge of the entire company.
- Information system design: The Initial Assessment document is the base for the development of the set of reports (Functional Reports for Operations, Dashboards for Middle Line Management, Scorecards for the Strategic Apex) focused on simplifying the decision making and control.
- Mentorship and coaching: Once everything is implemented, a constant Mentorship and Coaching process has to be carried out until the Data Driven component is internalized into the company’s culture.
Do you want to know more about Analytics Governance? Contact us now.