Archives For #DecisionScience

Preface:

I spoke at Data for Policy 2016 this past September on the issue of “You can’t have Data-driven Policy if your Leaders are Analytics Illiterate” (http://bit.ly/2iK4DPZ ). I wanted to follow-up on those thoughts with this posting.

Body:*

Strategy is the path that Leaders divine for Organizations to take in pursuing their short and long-term Goals (Outcomes). Leadership is the glue that keeps everyone & everything together during the course of pursuing these Strategic Outcomes. Data Literacy is the new intellectual underpinning of every successful Strategy going forward.  All three working in concert is how Organizations’ can exploit the potential of Data & Analytics for Strategic Success at the expense of their competition or to delight their Citizens. It’s what I refer to as “Embracing the Data Leadership Nexus”.

We now live in a time where every Champion of Industry, Politician & Civil Servant, is a self-proclaimed expert on Strategy and Leadership and yet most (if not all), are Data (& Analytics) Illiterate. Having no specific first-hand knowledge or experience in the domains of data, analytics & decision science, they continue to rely on “processed information” (via so-called Data Scientists) and personal gut instinct to formulate plans, make decisions with and to react to emerging situations. Without hesitation, each decides what balance of “head and heart” they will use for each & every decision. In a dangerous twist, many “Leaders” in recent times have decided to ignore Facts & Evidence altogether and base their decisions solely on Ideology. I am certain that most of our readers are aware of these as borne out in the major political calamities of 2016.

There are many who aspire to the mantle of leadership. It is a tough road for most with many pitfalls along the way. Surmounting these challenges is part of the maturation & hardening process that Leaders must go through to earn their stripes. The challenges leaders face today and in the future, will be many and ever-growing in terms of complexity (and nuance), but they now have at their disposal science-based Facts, Evidence and Methodologies for making data-driven decisions at every turn. All that is required is belief in the notion of data-driven decisioning and basic literacy & competencies in the use of data & analysis to underpin decisions, insights & ultimately strategy (and tactics).  While straightforward in respect to need, the efforts required to overcome the lack of Data Literacy by Leaders are substantial. The current (much less next) generation of Leaders and Leadership candidates are not equipped intellectually and experientially to be truly data-driven. They must be mentored, tutored and enlightened by examples of where data-driven decisions have paid off in terms of differentiation, insights, risk mitigation, etc. This approach will allow them to experience first-hand the personal growth that comes from investing time and effort in Data Literacy endeavors and the benefits that manifest from it. It will also heavily influence other Leaders and those on the Leadership track as to what the future holds in respect to competencies and the outcomes that can be achieved by a data-driven approach.

Leaders today face a barrage of hype about Big Data, Digital & Analytics. Few actually understand what any of it truly means, but all want to “have some” for their Organization. This paradox of need vs. understanding must be addressed through Data Literacy endeavors. Only then will be have Leaders (and those in waiting) who are competent in the domains of data, analytics, decision science and yes, even digital. They will then have the acumen (and confidence) to define Core Strategies that will leverage these competencies to achieve specific & sustainable Outcomes for their Organization, regardless of sector. It will also bring to an end to the nonsensical notion that Data & Analytics, Decision Science and Digital are “bolt-on” functional capabilities that require separate strategies (or Transformation Program to make them achievable. Every Organization, regardless of size, sector or mission statement must use its Core Competencies in an integrated form to create Strategic Advantage. Leadership that is literate in these same domains is well positioned to exploit them fully, while reducing inherent risks to a manageable level of tolerance. This is what Strategy has done for decades using stone tablets and chisels and will excel at in the future by exploiting the benefits of Data Literacy from the top down.

Post Script:

For further insights see McKinsey’s two (late 2016) essential studies on data & analytics “Making data analytics work for you—instead of the other way around”, & “The age of analytics: Competing in a data-driven world”.

 * – An edited version of this posting appears in the January 2017 issue of Information Age (UK) (www.information-age.com) 

 

Data-driven Government: The use of data (aka Facts, Information, Insights, etc.) to support all Decisions, Policies, Performance Metrics, etc. required in the daily & long-term operation of Government (at all levels).

Oxymoron: A rhetorical figure of speech in which markedly contradictory terms appear in conjunction so as to emphasize the statement ; gen. a contradiction in terms.

The notion of Data-driven Government presumes to solve the age-old challenge of balancing “head vs. heart”(1)  when it comes to decision making and associated activities in Government bodies. Data-driven Government creates a culture where decision making & behavioral outcomes rely on Data (aka Facts) to drive each and every aspect of day-to-day operations as well as the long-term strategic goals. The concept is not new at all and dates back many decades now, but has had limited success in Government until recently. The Data-driven approach has been brought to the forefront again as Government’s everywhere jump on the Data, Analytics & Digital bandwagons and proceed to Transform themselves into more agile and efficient bodies which can better serve the needs of its citizens, at substantially lower costs. It is clearly an ideology that has caught on in the numerous Digital Transformation Programs that we see around the world (UK-GDS, US-18F, Australia-DTO, EU-SDM, etc.) and has an almost religious zeal to it in respect to how Politicians and Mandarins characterize it in their advocacy activities (much less those who are actively involved in its delivery). However, beyond the rhetoric is the fundamental question; Is Data-driven Government an Oxymoron or a Reality? I will endeavor to answer this in the rest of my article.

Government (as a service and not quite yet a platform) has become increasingly complex to deliver effectively given the growing demands of daily operations and the increased sophistication & demands of Citizens in terms of their expectations from their Government. At the heart of this is a growing awareness, much less recognition, that Government is more and more like a business which now must compete for Customers in a highly crowded field of competitors. While this may strike some as odd, it is clear to most strategists that Government must keep up with advances in Decision Science used by the Commercial Sector in order to survive (at the polls at least).

To become a truly data-driven Government (and not cynically wear it as a fashion statement) the culture of decision making & performance management must change dramatically. This transformation begins at the very top of Government with the elected Officials who are accountable (with their Civil Service partners) for formulating and executing strategy and defining the associated tactics required to achieve the desired outcomes. These Officials must change their spots from being political hacks who use their power to force outcomes, to those who achieve outcomes by leveraging facts & measures. This approach must then cascade down to all levels of Government (Elected representatives & Civil Service) while remaining aligned along this path. The secret sauce in this approach will be balancing the political agenda of elected officials with the needs of citizens. Data-driven Government provides levels of transparency not currently found today even in the most progressive Open Data programs. The data used to drive these decisions must pass scrutiny by oversight bodies, opposing parties and citizens themselves. This leaves little wiggle room for political agendas to be fulfilled using smoke filled backrooms as a proxy for decision science.

Data-driven Government is a rationale that the Open Data community uses in their advocacy activities to justify further adoption and investments. They speak of “dog fooding” by Governments’ in respect to using their own Open Data to drive outcomes as well as enhancing Transparency. I believe that Open Data remains a PR tool for use by governments to control information outflows and to act as a proxy for transparency that comes from Freedom of Information laws. These efforts typify the fact that political power is hard to give up willingly by elected officials, but given the awareness of citizens to these tactics it will not be long before they are non viable.

In the end, will Governments’ have the political willpower to become truly data-driven or will they continue to embrace the politics of cynicism, power and cronyism? It remains to be seen, but strong seeds of change have already been planted and if supported by strong nurturing (via the electorate), plenty of sunshine (transparency) and nutrients (budget) it can and will become a reality.

(1) – The Head (cognitive) is all the rich data & insights that Governments accumulate and the Heart (emotional) being Politics/Human Behavior at its basest.

Note: This posting appears in an edited form in the January 2016 issue of Information Age magazine (www.information-age.com).