Friday 8 January 2016

Integrating Strategy and Analytics

Integrating Strategy and Analytics
“The vast majority of strategic initiatives never succeed.”
“Organizations fail not because they have the wrong strategy but because they do not execute the strategy properly.”
Statements like these have been repeated so often they have become conventional wisdom. An entire industry of management consultants exists to help companies define the right strategy so that they won’t fail. Yet failure, or at least muddling through, is still much, much more common than outright success. Through analysis you can determine where execution works well and where it does not. With that information you can evaluate the solutions, determine which one(s) to implement
Organizations are complex places. Cognitively, people have a hard time focusing on too many things at once. A primary vehicle for reduced complexity is standard business processes. Unfortunately, simplification and standard processes are not enough. You have to recognize and manage the organizational complexity for successful strategy execution. The challenge for frontline and middle managers is how to deal with the competing strategic and operational objectives
Most analytics conducted today by the business and by HR are incomplete and cannot solve strategy execution problems on their own. You need a full causal model to diagnose the entire system and to understand what really drives behavior and performance. You need to know what drives performance in your organization to get strategy execution right. The problem with organizational analytics today is that they tell an incomplete story. Enterprise analytics and human capital analytics are conducted along parallel and separate tracks. Both attempt to determine why performance happens, yet each on its own can tell only part of the story. Without the complete story, we don’t really know the best ways to improve strategy execution and organizational effectiveness.
When you understand the link to the larger system, you can properly diagnose the root causes of behavior and motivation. It’s also the surest way to find changes to solve the problems instead of temporary solutions that only paper over the root causes
VAMSIDHAR AMBATIPUDI
www.pacegurus.com

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