Leadership has an important role in the early stages. It is responsible for initiating analytical programs and leading the cultural shift. In the beginning there will be a division in upper management with skeptics and believers in analytics. Someone in leadership should champion the idea of analytics and foster the program.
Initiate analytical program by putting it on the agenda.
Champion and foster the analytical program at the highest level.
Leadership continues to be an important driving force for data-driven maturity, as long as not everyone in the organization is convinced. Early success has hopefully convinced the majority of upper management. If leadership praises the improvements through analytics, the rest of the organization will more likely embrace the changes. Basing decisions on data means no longer the most influential employees are taking the decisions, but decisions are made based on the correct use of analysis. Leadership has to follow through on this all the way to top level decisions. You can not force low-level decisions to be based on data while continuing to base high-level strategic decisions on intuition.
Continue to drive home the importance of a data-driven organization.
Show the results of data-driven efforts to the organization.
Lead by example and base high-level strategic decisions on data analysis.
Leadership has the important task to lead the organization across the chasm from `doing analytics' to `breathing analytics'. Great progress has already been made, and the organization might feel it is no longer behind the pack. This may lead to a reduced sense of urgency and less commitment to invest and expand analytical activities. But, we do not want to use analytics to do the same thing, we want to use analytics to make a difference. To make a difference and compete on analytics, you need to continually improve. So this is a critical step for the organization: Are you content with the current situation, or do you go above and beyond?
Bridge the chasm from doing analytics as a side activity to being a cornerstone of all processes.
Encourage the organizational culture to be the driving force for analytics, instead of leadership.
The data-driven mindset has now become mature enough to stand on its own legs. The attention of leadership shifts from taking analytics by the hand to encouraging adoption across the organization. Make sure the analytics department delivers on the tools that enable general adoption, and make sure the tools are being utilized. A data-driven mentality is being adopted by the entire organization, this should go all the way to the top. Incentivize and encourage an experimental and analytical approach to work.
Shift focus from nurturing analytics to encouraging widespread adoption
Encourage the empowerment of employees and an entrepreneurial spirit
Leadership has successfully set up analytics, and has led the cultural reform of the organization. Their task is now to encourage and facilitate innovation based on the powerful analytical capabilities of the organization. New innovation can lead to a business transformation, a fundamental change to how the organization operates. For example, Netflix is known for their strong analytical capabilities, which are used to recommend a user new content. Their prescriptive capabilities have allowed them to build a loyal base of users, because those users were getting personalized recommendations. Now they are taking their analytics one step further, by using the data they collect to create their own content they know will likely succeed. They are slowly transforming, from prescribing the content you like to creating the content you like.
Stimulate and incubate innovation efforts
Encourage data-driven innovation; using analytics to determine and capture opportunities