Data Driven Transformation? by Connected Insight
This blog is brought to you by Connected Insight, proud sponsor of OPEX Week 2020 and hosts of the platform delivering a new era for data-driven transformation.
Data-Driven Transformation?... The question mark is intentional. Many companies and transformation programs believe they are data-driven. But does using the equivalent of a compass count?
We’ve worked with many types of companies and transformation programs over the years. Some understand the importance of data and analytics to drive a transformation program, and for others it’s an after-thought. However very few are effective at it. Here are some tips to be data-driven and use the equivalent of Google Maps instead of a compass.
- Start with what you need, not what you have. If a program is told “hey we need some KPI’s to show what we are doing” the common approach is to see what data is available and what you can do with it. Instead, start with defining what you need.
- What you need is based on your program objectives. There’s an old saying “what gets measured gets done”. Is your RPA program in place to drive lower cost processes? Or is the RPA program in place to implement RPA? Define your objective (lower cost process), then start with measuring that.
- Structure matters…a lot. Many companies use “driver-based planning” to drive their profitability. Want higher net income? Then measure (and drive) the actions/solutions that impact net income... the “driver” metrics. Same logic applies to transformation programs. What a lower cost process? Then define the drivers, the measure for the driver, and link it to the objective.
- Internal benchmarking for informed targets. This is what separates high performing programs from everyone else. Most companies and programs set targets based on, “okay feels like we can achieve X%” or “we always do last year minus Y%”. Analytics should be tracked at the operational level (for most this means country or country/business combination) because, 1. you can benchmark across your organization and set informed targets and 2. that’s where front-line accountability is.
- Define “who” and “why” and therefore what they need. Transformation programs have many levels of stakeholders, however most programs see KPI’s as the equivalent of a brag book to show top management what they are doing. Think about who has a stake in the outcome. Also, who has a role driving or influencing the outcome? What decisions and actions are tied to that role? And therefore what analytics at what level of detail do they need to successfully perform their role? How often?
The Connected Insight platform is the equivalent of Google Maps. However, that technology layer requires a thoughtful and deliberate approach to defining what you need, why and who gets it. We make the “how” the easy part.