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Claiming credit for being data-driven

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What is preventing organisations from being more data-driven, why is this occurring and how to address these challenges

Published in: Data & Analytics
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Claiming credit for being data-driven

  1. 1. Claiming Credit for being Data-driven Alban Gérôme @albangerome MeasureCamp San Francisco 28 July 2018
  2. 2. We need to become a data-driven company, so we bought this data analytics tool and you will have access to it and your reports too @albangerome
  3. 3. Here’s what I need you to do… • Dig into the data analytics reports • Look for actionable insights and recommendations • Send the C-suite a daily report at 8am every morning Trust me, it’s pretty easy! @albangerome
  4. 4. But I am sure I did it right! • Lack of training or being thrown at the deep end with the data analytics results in people extracting what they think is the same report • This often results in discrepancies with the data, everybody thinks they extracted the data right and the other colleague has not • Eventually the C-suite must create an analytics team to have a single version of the truth @albangerome
  5. 5. Ah, you are our Head of Analytics Robert Actually Dr Robert H. • 30 years’ experience in his field • The C-suite just told him that his team must become more data-driven • Sees the Analytics team as just a support team Jess Actually Jessica • Was a business analyst at a Big Four consultancy for the past 3 years, straight out of Business School • The C-suite has hired her to help the organisation become data-driven • Sees the incumbent teams as stuck in the past @albangerome
  6. 6. 6 months later… @albangerome
  7. 7. Let the Battle for Credit begin! Dr Robert H. et al. • Ask for a lot of data • Seek to find actionable data all by themselves • Tend to cherry-pick the data that confirms the same old ideas and beliefs as before • Discard the rest of the data as unreliable or just noise Jessica and her team • Find actionable insights which no team wants to implement somehow • Produces many daily, weekly and monthly reports • Monitors for reporting outages caused by IT • Extracts loads of data @albangerome
  8. 8. Add one fresh egg • In 1952, Betty Crocker launched their first cake mixes but they didn’t sell well • Dr Burleigh Gardner and Dr Ernest Dichter suggested: remove the powdered eggs from the cake mix and print “add one egg” on the box • The Betty Crocker cake mixes started selling a lot better and people started spending more time decorating their cakes! @albangerome
  9. 9. People don’t trust algorithms “Algorithms beat humans in many domains – in fact, in most of the domains that have been tested… but people still aren’t using them” Berkeley J. Dietvorst, Assistant Professor of Marketing at Booth University, Chicago @albangerome
  10. 10. Forecasting experiment : Algorithms vs Humans Option 1 Participants can make their forecast Option 2 Participants can choose the algorithms’ forecast as-is but all participants rejected that option Option 3 Participants who had that option were significantly more likely to use it: take the algorithms’ forecast and tweak it The participants are told that most of the time algorithms will beat them but sometimes the algorithms make mistakes, they can be beaten too @albangerome
  11. 11. People do not want to rely on processes and people if they can’t add one fresh egg of their own and take some of the credit. Trust might just be nothing more than a convenient excuse @albangerome
  12. 12. “My Way” is a famous Frank Sinatra song, perhaps his most famous one Paul Anka, also a singer, adapted the lyrics of “My Way” from A song by Claude François, “Comme d’habitude” @albangerome
  13. 13. Full credit for the interpretation Full credit for the lyrics Full credit for the melody @albangerome
  14. 14. Frank Sinatra, Paul Anka and Claude François all get the credit for making “My Way” such a great song…. but so does everybody who has covered the song, even the Sex Pistols @albangerome
  15. 15. What a great team we make! Call me Robert! • By starting with business questions, I provide a steer to the analytics team • My 30 years of experience are still valued • I get full credit for that steer and domain knowledge Call me Jess! • We can focus on what data we need to answer the business questions • We do little reporting and monitoring now • My team and I take full credit for our data analysis skills @albangerome
  16. 16. Conclusion • Bombarding the analytics team with huge data extracts only to cherry-pick the 1% that confirms prior beliefs is being data-justified and wasteful • Providing actionable insight without regard for the years of experience of the incumbent team’s may be data-driven but it looks like conservatorship too • The ultimate goal is a data-informed organisation, a symbiosis of the domain knowledge and data analysis @albangerome
  17. 17. The credit for becoming a more data-driven organisation is for no specific team or person to claim Only the organisation as a whole can make that claim @albangerome
  18. 18. Thank you very much! http://www.albangerome.com @albangerome

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