“In God we trust, all others must bring Data” Williams Edwards Deming

Do you know that only 30% of organisations actually align their Analytics Strategy with their broader Corporate Strategy?

So, a simple question – how are these companies making their important decisions?

I mean, honestly how are they deciding on their new plan, a new hire, a new product, a new sector, some new capital equipment, a new warehouse, a new supplier, a new digital strategy, a new marketing campaign, etc….

Are they really ....... just winging it?

“Business Analysis is the discipline of recognising Business needs and finding solutions to varying Business problems”

Business Decision Analysis

The reason that this has become a bit of a passion for me, is that I actually did my Degree (BSc Hons) in ‘Business Decision Analysis’ many years ago and this was based around using advanced Statistical Techniques in all areas of a Business – and which has since proven to be the backbone of a lot of what I have achieved in my career. The degree was actually brilliant and opened my mind to the fact that every decision you make in business MUST be based upon facts! Yes, you need entrepreneurs and innovators (dare I say salespeople as well 😂) to drive ideas and new concepts. But all these thoughts and plans must be tested, analysed, and reviewed before being put into practice. I was taught how to analyse every business department in detail as well as how to collect, plan, forecast and statistically interrogate the data intelligently to ensure that all decisions would have the desired impact and if not, then what else could be done to make this happen.

Practical Combination of Analysis & Decisions

My first ever ‘real office’ job was as a Forecasting Analyst with a leading UK Energy company which was on my placement year from University and my first career move after graduating was setting up and running an Analysis and Statistics Department for the UKs (and Europes) largest Office Supplies Business. Here I learnt (by working hand in hand with some of the best Managers and Directors you will ever find by the way) how to mix data with Sales activity! It taught me a really valuable lesson early on in my career on how to practically apply what I had learnt (such as the analytical and theoretical techniques) at University to a real Business and industry; and especially to key functions such as Sales, Finance, Marketing and Operations. Since then I have moved onto become (amongst other things) a Board Director, a Sales Director, a Commercial Director and been a General Manager for a Global brand overseeing Europe and 155 other countries with revenue responsibility in excess of $1b over the last few years. The key point here is that in every role I have used a combination of my Sales and Commercial ‘mentality’ mixed with my analytical ‘mindset’ to ensure each and every decision I made was going to work before it was implemented. And to be honest with you, it has proven to be a highly successful blend of skills and approach as we managed to grow both the revenue and profit every single time despite the economic issues, declining industry trends and historical patterns of reducing volumes. I apologise for going on about my past, but I wanted to demonstrate how analytics can work 'hand in hand' with all departments in the real world - and when done correctly will positively impact the performance of any business.

“Without Data you are just another person with an opinion”

Business Analysis Process

Due to time constraints, I can’t go through all that I was taught over the 4 years at University (and not sure that I could do justice to all of the wisdom that Maurice, Mike, Gill, Matthew and others imparted onto me or my alumni) or everything that I have learnt in business in the 24 years since I graduated - yes, I am afraid I am that old! But I can share a simple process which can be used before embarking on a new strategy or a business change:

1. Identify the Business Issue/Area to solve – Why is there a need for this? What would happen if you do not do this? What do you actually want to deliver from this? And then make sure you gather all relevant background information.

2. Identify Stakeholders – Who needs to be involved in the project? i.e. data collection, analysis, review, inputs, decisions, sign off, implementation, etc.

3. Identify Requirements & Actions – What is needed to deliver this plan? What techniques will be used (i.e. quantitative, quantitative, etc..)? What software will be needed to perform it? What methodologies will be required to deliver the required results?

4. Collect Information – This can cover many areas including multiple systems, customers, partners, staff, data and must be collated and verified in an agreed fashion with timescales and key milestones identified

5. Analysis – Perform the required analysis and data interrogation and once finished then compile the information in a presentable and usable format, with clear charts and explanations of key points and results

6. Deliver Results – Present and discuss the results including outlining any problems, opportunities, issues, risks, rewards and potential solutions. Also include a proposed recommendation with detailed rationale, timescales and expected results.

7. Gain Approval from Stakeholders – Everyone involved needs to ‘Sign Off’ on the plan, input into the final agreement and be involved in how it will be executed and reviewed.

8. Review – Continuously review every aspect of plan, project, process, progress and the results to ensure it is delivering what was expected, if not then any issues and blockages must be identified and rectified quickly.

Why use Data and Analytics at all?

An easy way to answer this would be to demonstrate and explain how productive companies have made their ‘success’ from doing this – such as Wal-Mart who uses vast amounts of data and category analysis to dominate the retail market in the US; or Capital One who run more than 30,000 experiments per year to determine price points and which customers to target. But for me, there is a far easier answer - which is to simply understand that any decision that is taken without facts is nothing more than a gamble; and that means if you are not using analysis and facts to make decisions then you are literally ‘gambling’ with your company, your career and the lives and the future of every one of your employees and their families.

And in the same way - if you do not know how to properly evaluate, analyse, project plan and review your companies strategy and business decisions then you are again ‘gambling’ it all in the same way as if you were betting your business's success on the outcome of a game of roulette.

“Data is becoming the new raw material of business”

Craig Mundle Senior Advisor to CEO at Microsoft

As always, I have summarised an especially important and complicated area in an attempt to condense it onto two pages, but as I am sure you will be aware - there is so much more to say and explain on this subject. So, if you would like any further help or guidance then please do not hesitate to contact me on julianpatel@clivedenhouseconsulting.co.uk and I would be happy to help you explore this further or work with you on specific plans, strategies or get involved in any projects you may want some support in. I really cannot overstate the importance to me (and my past companies) of basing decisions, directions and strategies on proper analysis and facts and I guarantee that it will have the same positive impact on your business if you also follow this ethos!

Thanks for reading and again good luck and please stay safe …..