Getting Analytics

Right in Every

Organization

Jayson Tipp SVP of Marketing, Strategy, & Technology

at Papa Murphy’s International

Organizations are

filled with smart

and capable

analysts

But there is a

shortage of

people who can

deeply

understand

analytics and can

translate insights

into value within

an organization

People who can do

this will never have

to look for a job

What is your

culture today?

Analytics

Non-Believer

Organizations

Those who

run their

business on

“gut feel”

rather than

data

Analytics

Tourist

Organizations

Those who

rely on

analytics as an

additional

check, but not

as a must-

have

Analytics

Aspirant

Organizations

Those who

strive to do

more

analytics, but

the company

is not built on

it

Analytics

Native

Organizations

Those who

live by

analytics

The culture of analytics at most organizations,

or in departments within organizations, can be

categorized as:

So, it’s not the ingredients, it’s how you use them

How do you build the right analytics function

that works for your organizational culture?

Analytics

Non-Believers

Analytics

Tourists

Analytics

Aspirants

Analytics

Natives

Help key groups realize there is an opportunity for

improvement

Demonstrate the power of analytics in terms of

insights and time-saved with real examples

Ease the constraints on analytics to shift it from

being perceived as an obstacle to an enabler

How do you build the right analytics function

that works for your organizational culture?

Analytics

Non-Believers

Analytics

Tourists

Analytics

Aspirants

Analytics

Natives

Insert analytics into the organization as a series of

projects

Invest in data structure if needed

Move the role of data beyond a way to validate

decisions

How do you build the right analytics function

that works for your organizational culture?

Analytics

Non-Believers

Analytics

Tourists

Analytics

Aspirants

Analytics

Natives

Create momentum from existing alignment on using

analytics

Establish a recurring cadence of delivering insights

that drive decisions

Achieve complete transparency in sharing wins and

losses

Analytics

Tourists

Analytics

Aspirants

Analytics

Natives

Analytics

Non-Believers

How do you build the right analytics function

that works for your organizational culture?

Determine where in the business current insights are

not leading to better outcomes

Establish a “gold standard” for rigor and accuracy

of getting to an answer

Demonstrate the opportunity cost of not taking action

on an insight

Measure everything

73% of executives

trust their own

intuition

57% of executives

re-analyze

the data

if it contradicts

gut feel

43% of executives say

company

politics trump

evidence

Analytics are a growing part of decision-making, but why

isn’t every relevant decision backed by analytics?

Why?

They know their

business well and

don’t believe the data

points to the best

decision

They’re hesitant to go

with counter-intuitive

results; they don’t trust

the data or how they

are analyzing it

They don’t think that

the analysis is worth

“rocking the boat”

*Based on data from the Economist Intelligence Unit’s global survey of executives in 2014

45% of ideas do not meet the

hurdle of generating net positive

profit

…this is very risky (maybe reckless) as:

*Based on self-reported data by APT’s retail clients

so… many untested decisions

are burning hard earned cash

1 Develop a testing pipeline – an “Innovation Funnel”

2 Create a testing agenda to prioritize large tests;

encourage other tests to be run and analyzed

simultaneously

3 Facilitate opportunities to share test learnings

across the organization

Here are three key steps to measuring everything:

Ideas for testing should span

the organization

The Innovation Funnel

An innovation funnel provides new vehicles

to drive profits when one idea fails

Every idea should be put

through the testing process

Enough ideas should be

placed into the funnel so that

you can throw away the ideas

that don’t work and refine and

target the ones that do

Economic: Test should have a potentially sizable financial impact

Strategic: Test should address the strategic priorities of the firm

Decision

Focused: Test should affect a near-term action

New

Learning: Test should create new learnings for the firm

Testing Agenda

Prioritize tests based on the potential value

of the results, measured on four dimensions

Sharing Test Learnings

Facilitate opportunities for teams to provide

best practices for generating and

communicating results

• Review tactical testing calendar

• Share test results (including actions taken) and status of tests in design

• Approve design of new tests and share overall best practice learnings

• Review current testing agenda (tied to strategic priorities)

• Discuss key results, insights, actions taken, and value generated

• Obtain input on testing agenda

• Apply testing discipline in each step of the testing process

Questions