Two
CEOs were out in the wilderness when a bear saw them and was
lumbering toward the two. One CEO took off like a champion sprinter
while the other CEO stood with a pondering look on the face.
When
the first CEO saw the other one 'frozen' to the spot, he ran back to
help – when close he yelled asking what's the problem, 'that bear
looks really hungry!'
The
motionless CEO turned and said – 'All the analytics are not in yet
so I don't know what the optimal response is!'
This
story illustrates a paralysis that some leaders experience when they
get too deep into decision
by analytics or relying too
much on external measures and factors.
Before
the computerization of records and measurement, analytics were done
by hand and the investment in time and labor helped to focus what was
important to the success of the mission and targeted results. Now
that records and measurements are readily available for virtually
anything about the organization, market, economy, and global
situation.
It
is possible to compare the atomic clock to the system clock to
determine time-drift...but why bother? What would be learned?
SEO,
OLAP,
BPM
analytics are useful – like the rear-view mirror in the car is
useful, or reading a map before leaving on a trip. Planning for
detailed measurement and analysis is effective when done 'backwards'
– start from the desired outcome and back into the best way to
obtain the information. In addition, limit the routine reporting to a
handful of informative items – I had real-time access to a dozen
key indicators, like cash, receivables total & aging, payables
total & aging, sales volume & scheduled delivery, production
output, labor-force & hours, and accrued vacation – which gave
me a good picture of current conditions.
Sometimes
we can get so caught up in measuring
and interpreting that we delay action...and the bear get's us!
What
are the most useful key indicators?
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