Showing posts with label Organizational Change. Show all posts
Showing posts with label Organizational Change. Show all posts

Saturday, January 26, 2013

Creating Value through Analytics: A Question of Culture


Creating Value through Analytics: A Question of Culture

[1]

Web analytics is broad a dynamic topic these days.  And rightfully so. When well-executed, a web analytics technology can facilitate everything from brand exposure, to improved customer relationship management, to lower costs for a brand.  A lot has been written on the best technology suite to use or what KPI’s are really important. But before getting into the nitty-gritty details about a specific technology or analytics strategy, a bigger picture question must be posed, “Is your organization ready for web analytics on a cultural level?”
This question may seem overly simplistic.  It may seem vague.  It may even seem outdated.  However, It is incredibly important to have a clear understanding about how your company culture aligns with the what web analytics can achieve.  Or maybe more importantly what web analytics represents.  The topic and practice represents the attitude of not just measuring but predicting, not just asking “what” but “why”.  Its the embodiment of being pro-active instead of reactive.  It’s much more than an expenditure on new software.  After all, it doesn’t matter what suite is chosen, what metrics are spotlighted, etc.  If the the goal of turning data into real business intelligence isn’t culturally accepted, technology implementation will be a real struggle.   Web analytics, turns data into business intelligence.  Its not a single event and can’t be treated as such.  Rather, it has to be accepted as an ongoing discipline, thats embedded in the organization.  It’s about culture. [2]
So where do organizations lie today? Answers concerning cultural acceptance most likely range across a wide spectrum.  Some brands and companies are fully immersed in web analytics, constructing predictive models of customer behavior, and seeing increases in bottom line profits and margins because of it.  The may feel that the practice and technology is by no means new, but rather something that keeps them on par with other competitors in the industry.  Still others might be saying, “What are these internets that everyone keeps talking about?”
So what if your organization lands closer to the latter?  What if your CEO’s major concern is, “If I get trapped in the World Wide Web, will I be eaten by a world wide spider?”  In this case, not only do you have technical decisions to make concerning technology, but you have some cultural attitudes to shift as well.  It’s a challenging process.  
Changing a culture is a large-scale undertaking, and eventually all of the organizational tools for changing minds will need to be put in play.” [3]http://www.forbes.com/sites/stevedenning/2011/07/23/how-do-you-change-an-organizational-culture/
First, make the practice of web analytics, or more importantly the spirit behind it, accessible and desirable to embrace.  Technical specifications, KPI’s, and all the fancy jargon, will help you quickly lose your audience if they don’t understand the bigger picture.  “Start by understanding what you’re working with by taking a realistic assessment of your organization’s culture.” [4] http://john.webanalyticsdemystified.com/2010/01/29/building-a-culture-of-measurement/
Depict a process of analyzing data and generating intelligence, all in an effort to better understand the customer, the market, and create sustainable advantages over competitors.  Accountants analyze costs and suggest more efficient methods. Financial analysts review numbers and formulate revenue projections.  What makes web analytics people any different?  Nothing.  But always attempt to frame things on a level that people can understand.
Next, remember the people whose minds you are trying to change, are decision makers who are focused on profits and value.  The process facilitates intelligent decision making. It’s pretty simple.  Tie measures and key performance indicators, to value creation.   Now you’re talking their language. 
It’s always good to have support.  A few key people in influential positions, can help facilitate the process a great deal.  You don’t have to sell the whole crowd at once, but try to identify key decision makers, who can become advocates for implementation.  This will go a long way to not just change a few minds, but build a culture for success. ”Important colleagues or co-workers who were on the fence before may be strongly persuaded to jump on the bandwagon if a supervisor, partner, or even the owner supports the efforts.” [5] http://www.morevisibility.com/analyticsblog/tag/web-analytics-culture
And finally, make sure you have the right team structurally constructing things from the bottom up.  Not only do these folks need to be proficient in their role, but they need to be able to translate what they do to the people discussed above.  Those decision makers looking at things from the top down. 
These tactics are by no means exhaustive. The potential value created by analysis in both decision making ability and profit generation is truly staggering for an organization, a company, and a brand.  But understanding where your organization is culturally, and more importantly where it needs to be, is critical for success. Culture determines if implementation will be successful and if value will actually be created. After all, the best technology, the best measures, and the best insight, can’t result in value creation without proper implementation.  Culture is Key!


[2] http://en.wikipedia.org/wiki/Organizational_culture accessed on January 19, 2012

[3] Denning, Steve. “How do you change an organizational culture”. Forbes. July, 2007.

[4] Lovett, John. “Building a culture of measurement”. published on January 29, 2010.

[5] Texieria, Joe. “It takes a village to raise a culture of web analytics”. published on August 10, 2009

Organizational Change and Analytics: 5 Baby Steps to Effectively Manage Change

Dilbert comic strip for 9/13/2010
Dilbert comic strip for 9/13/2010 from the official Dilbert comic strip archive

Many companies have a difficult time changing how they are used to doing things in order to move towards the digital age. Many might as well be in the Stone Age when it comes to understanding how digital analytics and other tools such as social media can be used to help their organization and how they should be implemented. Without this understanding, they fear changing what they have grown accustomed to doing in order to move towards this new frontier.   This resistance in a corporate organization can seem daunting to younger professionals trying to persuade and help these limping organizations take that leap. (Dykes, 2010)

Here are five broad level steps to help you begin developing a plan to move change within your organization along:

Step 1: Look at what is working right now


Many times in an organization, a change leader looks at what the problems are in an organization and moves to fix them. This harbors more resistance from an organization as most people resist being fixed. In order to garner trust from the organization and its individual members, it is better to first look at what is being done right, what is working and highlighting those “bright spots” as Brent Dykes puts it. (Dykes, 2010)
"Switch" By Chip Heath and Dan Heath - How to Change Things When Change is Hard

Step 2: Where do you want to be?


Everyone needs to know where they are going. If we don’t define where we want to be, you’ll only be left wandering blind. Clear direction must be given so that you can effectively measure between where you are now and where you want to be. Having a “vivid picture from the near-term future that shows what could be possible” helps you appeal to the rest of the members of your organization and ensures you are all able to move down the same path towards the same destination. (Dykes, 2010) (Heath & Heath)

Step 3: Lay out specific details or actions to take


Chip and Dan Heath from the book “Switch” use the example of an elephant to describe how best to handle change in an organization. “The elephant will always want to stick to the familiar path (status quo). Your organization will need more than just a vision for becoming more data-driven but also specific details or actions.” [2] This is a critical key. Now that you’ve determined where you are and where you are going, you must create goals to achieve, planning them out with those specific details and actions to ensure everyone is on the same page. Without SMART goals, and ways to achieve them set, an organization will keep on the same path it has always been on. (Heath & Heath) (Arina, 2010)

What kinds of goals are good goals in the realm of analytics you might ask? Avanash Kaushik, a Digital Marketing Evangelist, suggests you link your goals to the business. Find metrics that show how the digital frontier affects the bottom line. Stay away from clickstream, he suggests. It becomes “old” quickly. Figure out what motivates your audience, what brings them to your site. Make sure these goals or metrics are SMART, and be willing to change them as time goes on. (Kaushik, 2006)
Deliver Hope Wrapped in Small Wins

Step 4: Deliver Hope wrapped in small wins


When everyone feels involved, change in an organization is much easier. Giving people a purpose and making them feel important and involved will make them more willing to change for you. Make everyone an analyst. Ask them for their opinion. What do they see in the data? Just because you have reports, doesn't mean you know what’s happening. When you find successes, make sure everyone knows. Deliver these to the organization so they can see the worth. (Dykes, 2010)

Step 5: Encourage Good Habits through developing a culture around Analytics


Corporate culture can be elusive, yet when developed right, it can enhance and impact an organizations work environment and output. Developing a culture around analytics is not simple, but can be done by developing rituals and routines such as announcements about the company’s digital successes in a given time period. (The Cultural Web)

To learn more about organizational change whether it be about analytics or not, I recommend reading “Switch” by the Heath brothers, as well as taking a look at Johnson and Scholes’ Cultural Web. For more on Analytics, I recommend Avinash Kaushik’s Blog. Best of luck to you!

Works Cited


Arina. (2010, February 20). SMART Goal Setting: A Surefire Way to Achieve Your Goals. Retrieved January 20, 2013, from Goal Setting Guide: http://www.goal-setting-guide.com/goal-setting-tutorials/smart-goal-setting
Dykes, B. (2010, July 29). Switching to a Data-Driven Culture. Retrieved January 20, 2013, from Adobe Digital Marketing Blog: http://blogs.adobe.com/digitalmarketing/analytics/switching-to-a-data-driven-culture/
Heath, C., & Heath, D. (n.d.). Switch. Retrieved January 22, 2013, from Heath Brothers: http://www.heathbrothers.com/switch/
Kaushik, A. (2006, October 23). Seven Steps to Creating a Data Driven Decision Making Culture. Retrieved January 22, 2013, from Occam's Razor: http://www.kaushik.net/avinash/seven-steps-to-creating-a-data-driven-decision-making-culture/
The Cultural Web. (n.d.). Retrieved January 22, 2013, from Mind Tools: http://www.mindtools.com/pages/article/newSTR_90.htm