Archives For November 30, 1999

I have a number of interesting Blogs, Articles and Tweet Storms coming up this month. I have listed them in chronological order. Keep an eye out for updates over the course of the month.

Blogs:

Recap: “The Data Leadership Nexus”(IMECS Blog: http://www.infomgmgexec.me)

“Data, Information & Analytics in The Data Leadership Nexus” (IMECS Blog: http://www.infomgmtexec.me)

“Privacy and The Internet of Things (IoT)” (The Privacy Corner: IBM Big Data & Analytics Hub. http://www.ibmbigdatahub.com/blog/privacy-and-internet-things 

Articles:

“The Data Leadership Nexus as a Strategy” (Information Age (UK) Magazine. http://www.information-age.com).

Tweet Storms:

Second NIST Privacy Engineering Workshop (IAPP Conference, September 15-16, 2014, San Jose, CA) – Follow #priveng for all relevant Tweets.

Conferences:

“Cyber Threat: Evolving Best Practices in Framing and Managing the Risk” (NACD – Seattle, September 23, 2014)

“Communicating Cyber Risk to the Board” – (ISACA – Seattle, September 23, 2014)

The notion of The Data Leadership Nexus has five basic components;

1.- Top-Down Leadership (by the Senior Executive Team)

2.-4.- Data, Information & Analytics

5.- Organizational Culture 

In this posting entitled,“Organizational Culture” I will discuss one of the most widely mis-understood and under appreciated elements in creating a Predictive Enterprise, that of Organizational Culture and the imperative to change it from being data & analytics illiterate to one where information & analysis is used by everyone to drive each decision and to facilitate every strategic & operational outcome.

The Culture of any Enterprise is based on the long-term strategic direction that the organization has undertaken over the course of its history and the collective experiences along the way. It is shaped daily by the actions and activities of the Leadership Team who have guided this journey. Organizational Culture is the shadow of the Chief Executive Officer (and Senior Executive Team) and is found behind every door and felt down every corridor in the Organization. It is the single thread that ties everyone together within any Organization. Given this, Organizational Culture is the most important component of The Data Leadership Nexus that must be leveraged in order to transform an organization into a true Predictive Enterprise.

As one would expect this Cultural Adoption (transformation) must be driven by the Top-Down Leadership of the CEO and his or her Senior Executive Team. We discussed in my last segment on Top-Down Leadership just how essential it is for the entire Executive Team to “walk the talk” in respect to becoming a Predictive Enterprise. This will manifest from their own competencies and acumen in data & analytics and how they position the use of them in every strategic and operational endeavor that the Organization is involved in. Their Leadership comes from these strengths and their lock-step application of the strategic constructs of;

  • “Information as an Asset”
  • “Evidence-based Decisioning”
  • “Information-driven Risk Management”
  • “Competitive Advantage through Advanced Analytics (everywhere)”

Once Top-Down Leadership has set the tone and direction for the “data & analytics way-forward” by their own personal commitments (via OBM goals) and demonstrated actions, then the Organization must address how to “adapt” the Current State Culture into the Future State model. Many Organizations would tend do apply the traditional Change Management (CM) techniques of; Communications, Training & Readiness Preparation and call it a day. In my experience this will not work by itself. Cultural Adoption is not Change Management!

Cultural Adoption requires Engagement, BootStrapping and Practical Application endeavors to augment traditional CM. It requires the Top-Down Leadership Team to directly Engage with the Organization at all levels. This is not a hierarchical exercise, where “orders from the top” can be cascaded down, but a lateral one where these leaders bring their messages directly to the Front Lines of the Organization,  while personally demonstrating to their own subordinates the commitments that they have made to the successful Transformation into a Predictive Enterprise and all that it portends for success. These Engagement efforts must be genuine and felt by all. The entire Top-Down Leadership team must be in sync working in unison towards the common goal and outcome.

In parallel with Engagement, the Organization must BootStrap everyone’s abilities & understandings as to what becoming a Predictive Enterprise entails and how each of them will play a role regardless of job description. Everyone must be on-board with the plan and approach and be actively participating in the pursuit of the transformational outcome via Training, Mentoring, Coaching & Hands-on Instruction. This will create Cultural Adoption momentum that can be sustained through the continuous application of Engagement and bolstered through the daily Practical Application of data & analytics to every decision and pursuit of operational outcomes.

Practical Application is one of the most critical activities because it intersects with Relevance. For any Culture to Adapt there must be strong Leadership, the attainment of Competencies and Understandings as to the Future State Direction, but also Relevance to them personally. Whether a Mature Enterprise or Start-up each member of the Organization must feel a sense of purpose in order to be an active member of the Culture, much less a contributor to the successful outcome of the transformation strategy. It is essential for all levels of Leadership to empower all members of their Organizational Unit to be contributors to the notion of being a Predictive Enterprise. In most cases this will require a complete re-evaluation of roles and responsibilities such that decision making and insights analytics are core to each Information Workers daily activities.

To become a Predictive Enterprise you need committed Top-Down Leadership and a Culture driven by the pursuit of a common strategy & its goals to then fully exploit your rich Data & Information Assets and Deep Analytics Capabilities. In this posting I have endeavored to provide a thin veneer of the requirements and complexities in adapting your Organizational Culture to become a Predictive Enterprise. It is one of the most significant investments in time, energy and resources but an essential one in becoming a Predictive Enterprise.

In my next installment of The Data Leadership Nexus I will explore for my readers the more familiar areas of Data, Information & Analytics, but from what most will regard as a very different perspective than other Thought Leaders.  Look forward to seeing it soon.

RL

 

 

 

Nexus (noun). “a connection or series of connections linking two or more things”.

Predictive Enterprise (noun). “The use of predictive capabilities (data, information & analytics) to optimize decision making, mitigate risk and exploit insights for competitive advantage”

Anyone who has read this blog and my many articles in Information Age (www.information-age.com) on the subject of the Chief Data Officer (and its many variants i.e. Chief Analytics Officer, Chief Digital Officer, etc.) over the past year or so is no doubt quite aware that I am neither a fan, nor supporter of the notion of a “Data Czar”. I have attended numerous conferences on this topic and have read the entire litany of rationalizations written by so many out there as to why this role is critical in today’s enterprise. Everyone, except me it seems, is full enamored with this notion and are all happy to cheerlead its success even if they don’t have one of their own yet (you know who I am referring to here). I myself have decided to take a different path than the rest of the pack.

Having pondered, much less experienced first hand the challenges of “How to evolve into a Predictive Enterprise” I want to address the three essential challenges associated with this journey; Executive Leadership, Strategy and Culture. Each provides a critical element of success and yet have been left out of much of the Data & Analytics conversations to date (I touched on all three in my last blog series on “Transformational Leadership for Big Data & Analytics Success”). My aim now is to change that and make them front and center in the discussion going forward while combining them with the technology components of Data, Information & Analytics.

When I was developing the notion of The Data Leadership Nexus in my mind I was focused on how to bring all of the key components together in a way that would ultimately create an aggregate response to the needs of a Predictive Enterprise. The most obvious components of the Nexus are the ones that most everyone dwells on; Data (big and small), Information (data with appropriate context) and Analytics (statistical, descriptive, predictive & cognitive), with the less-obvious being the three critical enablers of Executive Leadership, Strategy and Culture. All are not necessarily equal in significance at any particular point along the Predictive Enterprise journey, but all are necessary nonetheless.

For the moment my working definition of the Data Leadership Nexus is as follows;

The Data Leadership Nexus connects Data, Information, Analytics, Executive Leadership and Organizational Culture to create strategic impact, differentiation and enterprise value within every organization striving to become a true Predictive Enterprise). The Data Leadership Nexus represents the single biggest opportunity to realize the benefits that have been extolled about Big Data and Advanced Analytics and is the linchpin for establishing “a culture of analytics” which fosters evidence-based decisioning, deep insights, full knowledge exploitation and optimized strategic performance while making all such activities pervasive across their enterprise. To me it is the realization of everything data-related that we have been working towards for more than 50 yrs. now in Management Theory, Decision Science and Technology.

Having established the definition and rationale for The Data Leadership Nexus, the next step is to define the means to a successful journey to become a Predictive Enterprise.

The first step, and absolutely the most critical, is to firmly establish the role and accountability of Executive Leadership in this nexus. In my last blog post of July 25th (“Data & Analytics Leadership: Missing in Action”) I made the case that the CEO, Board and Senior Executive Team have essentially been MIA during the entirety of the data & analytics journey to date and that if this does not change fundamentally then the benefits of being a Predictive Enterprise will never be realized. I will expand on those beliefs and more in the next installment of The Data Leadership Nexus, entitled “Leadership Requirements in the Predictive Enterprise.”.

Stay tuned.

Richard

I have a number of Thought Leadership items slated for going live in August. Below is a listing of their titles and publication dates.

  • August 1st (WordPress Blog Series): “The Chief Data Officer: – Superhero, False God of Data or Fashion Statement? – Reflections on the MIT 8th Annual CDO & IQ Symposium” (Cambridge, MA) (www.infomgmtexec,me)
  • August 5th (WordPress Blog Series): “Overview: The Data Leadership Nexus” (www.infomgmtexec.me)
  • August Early (approx) – IBM Big Data & Analytics Hub: The Privacy Corner – “Privacy and Social Experimentation” (www.ibmbigdatahub.com). If you want to follow all of my blogs on the Big Data & Analytics Hub use this link to set up an RSS feed: (http://www.ibmbigdatahub.com/blog/feed/richard-lee)
  • August 11th (WordPress Blog Series): “The Data Leadership Nexus: Leadership Requirements in the Predictive Enterprise” (www.infomgmtexec.me)
  • August Late – Sept. Early: Information Age: Monthly Column – “The Data Leadership Nexus” (1st installment in this series) (www.information-age.com)
  • August 30th (WordPress Blog Series): “The Data Leadership Nexus: Organizational Change” (www.infomgmtexec.me)

Keep an eye out for calendar updates and additional postings.

Enjoy!

RL

I am presently waiting in the Boston Airport for my flight home to Seattle after attending the “8th MIT Chief Data Officer & IQ Symposium” this week and wanted to reflect on the above while the thoughts were still swirling around in my head.

The Symposium was extended by 1/2 day to support discussion on “Bridging the Data Science Talent Gap”. There were presentations from Industry, Consultants/Recruiting & Academia with almost a singular focus on the so-called “Data Scientist” (a fictional character resembling a Unicorn in my opinion) and how to create them, find them and leverage them for success. As expected given the demographics of the audience and the presenters the point of view was very much through the lens of technology with a smattering of business speak to provide some balance.

What was so obviously absent from the entire dialog was the role of Business Executives as Leaders of the Data & Analytics Initiatives across their enterprises. Instead, they were relegated to the role of providing the vision (a very limited one), funding, head count requisitions, capital investment funds, consulting contracts, etc. in support of the Chief Data and Analytics Officers, the CIO/CTO and Other Interested Parties and their plans of action. A clear belief was indicated by many that Business Executives were just not up to the task of Leadership. Why is that one should ask?

From my vantage point as an Executive Consultant I have seen this dynamic play out many times and the root case is that the Senior Executive Team is “Missing in Action”. There is a total disconnect between the Strategic Leadership that they provide and the requirements to successfully execute the Disruptive Strategy that Data & Analytics portends. This must change and immediately.

Today’s Senior Executive is not shy when it comes to expansion of their operational portfolios or the pursuit of risky endeavors such as Credit Default Swaps (CDS), Mortgage Backed Securities (MBS), etc. especially when it feathers their nest or vanquishes the competition. However, when it comes to Data & Analytics they are Missing in Action (MIA). This situation has created a management conundrum. Senior Executives cannot be Masters of their Universe when they do not understand the fundamentals of Astrophysics. In other words, their strength (and success) manifests from deep domain knowledge and acumen and applying these to creating sources of competitive advantage for their organization, not cheerleading a disruptive change in their business model which they neither understand nor can work from a position of strength to drive to success. In spite of being strong believers (and advocates) for Data & Analytics the vast majority of Senior Executives are not Analytics Literate. They have never worked in an evidence (or fact) based decision making environment, much less one where everyone across the Enterprise leverages Information & Insights in every task they are responsible for. I could go on for quite a bit more here, but will leave that for later.

I believe that we need to immediately change the dialog in the Data & Analytics Community from “Big Data, Data Scientists, Chief Whatever Officers, Data Lakes, etc.” and focus on Executive Leadership Development (not IT) and determine how to put the entire Senior Leadership Team on a trajectory where they can ultimately assume the Full Accountability for all Strategic Outcomes from applicable Data & Analytics Strategies and Plans. If we do not change this Organizational Dynamic in short order all bets are off.

I will be developing an overview of how to accomplish this in my upcoming series (and presentations) on what I am calling “The Data Leadership Nexus”. Look for an overview of this in early August.

RL

In the two previous installments of this series, I focused my viewpoint on;

1.- Defining a Leadership Paradigm for Big Data & Analytics Success

2.- Establishing Top-Down Accountability

In this final installment I will focus on the roles that optimized Organizational Design and broad Cultural Adoption play in the success of any Big Data & Analytics Success Story.

Suffice it to say, you cannot simply establish Top-down Accountability within the Leadership Hierarchy and expect to achieve real transformation. You must also create a “to be” Organizational Model that is optimized for the strategic mission and the realization of its outcomes, as well as bringing the entire Organization’s Culture on board to support this vision and the pursuit of the outcomes that come with it. Without these critical Organizational endeavors you will not be successful with your Big Data & Analytics Transformation no matter how strong of a Leadership Hierarchy you have created.

Your Leadership Hierarchy (beginning with the CEO & Board and then cascading down to Senior Executives and their subordinates) is collectively responsible for making realizable all of the Big Data & Analytics strategic outcomes as part of their overall operational plans and activities. To accomplish this the Leadership Hierarchy must approach the challenge with an optimized Organizational Structure that has been designed to be fit for purpose for this task and not one where you are trying to leverage a legacy structure that cannot adapt to this new mission. This has been one of the classic mistakes so far as Organizations’ attempt to “bolt on” their Big Data & Analytics strategy to existing structures, rather than address Organizational Design requirements as part of the strategy itself. Examples of this is the use of Competency Centers and Centers of Excellence as catalysts to create critical mass for Big Data & Analytics. Each time this approach is advocated and ultimately undertaken, poor results and a dissipation of Leadership buy-in results as they are not leverageable across the entire Enterprise and typically only serve the needs of the few and not the many. Quick fixes and Organizational band-aids will not work if you want Big Data & Analytics to be truly pervasive. Organizational Design is a process that supports the CEO & Board in moving from Strategy to its successful execution and will require appropriate investment and disruption of the status quo. It is an essential component of achieving the Strategic Outcomes that manifest from your Big Data & Analytics Strategy and should not be undertaken as an after thought. Like any other critical component of the Organization and its Operating Model it must be fully deployed at the time of your Transformation journey as one of the required elements for success .

Secondly, Cultural Adoption is the most critical challenge associated with any Big Data & Analytics strategy and must be fully appreciated, much less addressed at every point along the journey. It can be an accelerator or a de-limiter (much less killer) of any strategic journey and is the total responsibility of the Senior Executive Team to facilitate. Leadership from the top-down has its risks and the most substantial one is not engaging sufficiently and earnestly with the Organization’s Culture. Most of this risk manifests in the multiple layers of management & supervision between the responsible executive and their front-line staff. Culture cannot be changed by edict (or fiat), but rather must be motivated to adapt by a compelling strategy that is lead from the top-down with substantial hands on activities by the executive team to make it real and essential to each staff worker who make up so much of the Organization’s Culture. This cannot be achieved by what is called Change Management. Change Management is little more than cheerleading and communications, with far too much focus on training. It is a poor (if not failed) substitute for truly engaged Leadership working in the trenches to instill & empower all of the front-line staff to embrace Big Data & Analytics and make it truly pervasive in  their daily activities and mindsets. Every Organization that has been successful at real Transformation knows well the requirement to engage with the Culture and to motivate it to not only Adopt the new operating model, but become “rabid fanatics” about its virtues along the journey. Big Data & Analytics Transformational Strategies are no different and if anything, offer unique opportunities to completely transform an Organization from backwards, gut-driven decisioning to one that leverages information & analytics at every turn to be not-only fact-based decision makers, but a true Predictive Enterprise.

To Transform your Organization to become a Predictive Enterprise where Big Data, Information, Analytics and a Fact-based Culture all are leveraged to achieve sustained Competitive Advantage, Disruptive Results  and Market Dominance requires; Top Down Leadership & Accountability, an Optimized Organizational Structure and an Evolved/Engaged Culture. If any of these are missing or sub-optimal then the Strategic Outcomes projected within anyone’s plans will not be realized.

I will write on these same themes as I provide live blogging from this coming week’s MIT Chief Data Officer (CDO) & Information Quality Symposium in Cambridge. The agenda is quite full of interesting opportunities to provide a contrarian viewpoint on CDO vs. Transformational Leadership

RL

PS: I am launching in August & September a new series of thought leadership articles in Information Age (www.information-age.com) and at Data Leadership 2014 (www.dataleadership.co.uk) on the notion of “The Data Leadership Nexus”. These are meant to be a logical extension to this blog series on Transformational Leadership. Here is an overview:

The Data Leadership Nexus is the intersection of Data, Information, Analytics & Leadership to create strategic impact, differentiation and enterprise value within every organization. It represents the single biggest opportunity/challenge in realizing the benefits that have been extoled (and often hyped) about Big Data and Advanced Analytics. It is also the linchpin for establishing “a culture of analytics” and making it pervasive across each enterprise and is clearly the most ignored strategic risk in virtually every organization.

In my last posting I outlined a pathway for Transformational Leaders to use in achieving pervasive Big Data & Analytics success within their organizations. In this installment I am going to focus on the specifics of Top Down Accountability by the entire Senior Executive Team as it leads these transformational efforts.

In spite of all the punditry regarding new management paradigms & leadership structures, the vast majority of all Public, Private & Non-Profit organizations remain hierarchical in structure and cultural behavior. This fact cannot be ignored when establishing both the Strategy for Big Data & Analytics Transformation (BDAT), as well as its execution plan. It is essential to success and If you choose not to leverage this dynamic or try to run counter to it you will fail to achieve any outcome of substance in my viewpoint.

The Senior Executive Team (SET) within each organization is typically organized around major functional elements of the operational model utilized. Strategic direction comes from the CEO & the Board and cascades down to the accountable Executives tasked with its execution and the successful realization of its outcomes. This well established dynamic becomes the means by which we truly transform legacy decision making (from gut-based to fact-focused), insights (minimal to maximal) and analysis (from backward-looking to predictive) to create a true analytics-driven enterprise. In this model, each Executive manifests Strategy Execution by using Big Data & Analytics pervasively across their domain of Accountability to maximize Outcomes. Responsible subordinates drive this down the hierarchy and embed it further into all of their Tactical & Operational endeavors with alignment horizontally. Front-line workers leverage & exploit the Organizations’ Big Data & Analytics operational activities daily.  To achieve this level of pervasiveness, all Senior Executives, subordinates & staff members must be fully committed to successful execution of the Strategy and competent in all the relevant aspects of the data & analytics which intersect with their area of responsibility. This cannot be delegated to  a 4th-level subordinate squirreled away somewhere in a cube who “gets it”. They all “must own it” and rise to the challenge through whatever means are available.

As mentioned previously mentorship, change management and formalized educational activities should be brought to bear in order to bootstrap all Accountable and Responsible Executives, Managers and Subordinates. This represents a major up-front investment by the Organization in the success of the transformational strategy and is a benchmark as to their true commitment to achieving its outcome.  Relying on Competency Centers, Centers of Excellence, Data Scientists, Chief Data Officers, Chief Analytics Officers and other proxies just will not cut it. If Enterprises are going to be successful with Big Data & Analytics then the Senior Executive Team must “walk the talk”. Nothing less will do.

This is clearly a major challenge & undertaking for the current generation of Senior Executives and a great number of their subordinates, but is should not be for the generation to follow. We all (Educators, Consultants, Advisors, Vendors, etc.) must work these transformational enterprises to insure that they develop the deep acumen and competencies within these future business leaders that we intersect with in our endeavors. We can no longer exclusively devote our time, energy and resources to those in the technology department as they are neither accountable or responsible in this future model. Their voice has been diminished and will not be heard at all unless they become more relevant to the more strategic conversation. For more on this see my July 2014 Information Age article (http://bit.ly/1sU3yol) on Leadership during the time of disruption.

In the end, No Enterprise will ever transform itself into a Big Data & Analytics Success unless the process is owned and executed by the Senior Executive Team from a top-down perspective. IT is powerless to achieve this outcome and it is delusional to think otherwise. The current generation of Senior Executives know their business models, competitive environment and organizational cultures well, but are hamstrung by the lack of formal education and competencies in Big Data & Analytics. This can be overcome with our assistance, but we should not lose sight of the end game which is the next generation of Transformational Business Leaders.

In the Final Installment on this topic (for now) I will focus on “Organizational Design & Cultural Adoption”. Stay tuned.

RL