Category Archives: Strategy

Strategy

Chart Your Voyage: How Pirates Lead Digital Transformations

One year ago we explored the question of when it was time to live the pirate life. Today, we are going to explore ways to chart your first pirate voyage. You’ve convinced your executive team that change, in this case a “digital transformation,” will bring tremendous value. What was once a pirate project has burst into the mainstream with companies projected to spend billions (trillions?) of dollars on transformative projects over the next few years.

So what is a pirate to do when the seas are awash with investment? When the corporate armada is suddenly on-board yet somehow rudderless and adrift? When you’ve been given a compass, spyglass, and every hope and prayer that you will navigate the fleet to Transformation Island unscathed and under-budget?

The exciting news is that your pirate instincts are exactly what is needed to navigate these unchartered waters. Digital transformations have new twists and turns depending on the organization. Fortunately, smart consultants follow the scent of any reusable idea (a.k.a. treasure) floating in the breeze and “Digital Transformation” is a pungent example. As a result, the resourceful pirate has many safe harbors of research freely available to help chart a path into unfamiliar waters.

Do The Reading

Pirates read…a lot. Without direct orders from the Royal Navy and propelled by burning curiosity, pirates continually need to chart new paths and learn new skills to navigate uncertainty. Here is a list of seven go-to articles to fuel your strategic thinking before drawing a dotted line to the oversized “X that marks-the-spot” for your digital transformation.

McKinsey & Co.

These articles provide the best introduction to different frameworks Data Strategists can use to frame complexity. Start with “Ten Red Flags..” and pay special attention to how data initiatives are organized by impact and feasibility. The venn diagram illustrating both the multitude and intersection of analytical roles is very versatile. I’ve used it as a wake-up call for overly ambitious executives, and as a way of highlighting gaps in an organization. Lastly, make note of the diagram illustrating the centralized vs. decentralized organizational structure. It’s especially helpful when paired with the articles from HBR listed next.

The Harvard Business Review

“What’s Your Data Strategy” begins with a true and sobering statement: “CDOs’ tenures are often difficult and short.” This article introduces two potential data strategies, offensive and defensive, based on the intended use of an organization’s data. While I find the article a bit too (delightfully) abstract to put into immediate practice, the framework is an invaluable tool to negotiate the responsibilities shared between the business and IT. The second article is an urgent reminder of the specific skills critical to data success, and a helpful guide to the crew you will need to recruit.

Harvard Data Science Review

The Harvard Data Science Review is a new publication that belongs in the bookmark list of any and every data professional (pirate). “How to Define and Execute Your Data and AI Strategy” integrates many of the principles outlined in the lists above from McKinsey and HBR, with the additional benefit of a practitioner’s detailed perspective. This is especially evident in the Operating Model section of the article which introduces an almost Agile view of the data and business functions in an organization.

Sketch a Map

To be fair, at some point you will start feeling seasick from reading about data strategy and digital transformation. And it’s at this point when the seasoned pirate recognizes that it’s time to take action and put pen to paper. Sketching a map includes balancing risk vs. reward, and building consensus. A clear map to treasure is not enough. The people you engage provide the wind that powers your sails and the rudder that keeps you on course.

Balancing risk vs. reward begins by marking treasure with a big letter “X” wherever you think it may be found. That’s easy and unfortunately many companies (and doomed pirates) stop there. Building consensus is about sharing the map of possible treasure sites, and inviting your colleagues and crew to weigh in on both the risks and the rewards. Worthy topics for our next article. Until then just remember: good pirates do the reading. Now get started!

Strategy

Is it Time to Live the Pirate Life?

When should you escape the Navy and start a Pirate brigade? Does it really pay off in the long run? Organizations are good at purchasing tools and technology, but often struggle to recruit the right mix of people or recognize the level of change necessary to deliver on the promise of Analytics. If you are one of these recruits, eventually you will hit the limits of your crew and command. At some point you will spy clearer sailing and greater riches in a different direction. This is normal after you’ve been out to sea for a while, but it doesn’t make the challenge any easier.

The key question is whether you can turn the ship using the existing chain-of-command and spare parts, or whether adopting the Pirate code is the best path to greater treasures. And yes, the Pirate code is much more than wearing a patch and sporting a peg-leg.

How a Group of NASA Renegades Transformed Mission Control is an excellent case-study from the Sloan Management Review of how a small team of passionate engineers created a Pirate culture within NASA to deliver a major upgrade to technology credited with putting men on the moon. Key tenants of “the Pirate Paradigm” include:

  • Don’t wait to be told to do something; figure it out for yourself.
  • Challenge everything, and steel yourself for the inevitable cynicism, opposition, rumors, false reporting, innuendos, and slander.
  • Break the rules, not the law.
  • Take risks as a rule, not as the exception.
  • Cut out unnecessary timelines, schedules, processes, reviews, and bureaucracy.
  • Just get started; fix problems as you go along.
  • Build a product, not an organization; outsource as much as possible.

The last bullet point, “Build a product, not an organization..” is especially critical for any aspiring, analytical Pirate. The ability to navigate the existing organization and engage others (with capacity) to help you build your Analytical vision is key. Common challenges include an over-dependency on familiar tools (or outright lock-in by vendors) and a fear of downstream (hidden) disruption. One approach to recruiting a crew is to clearly demonstrate (prototype) the value your solution will bring to their voyage.

Changing Company Culture Requires a Movement, Not a Mandate is a case-study in harnessing Pirate energy for broader cultural change. The article explores how Dr. Reddy’s, a pharmaceutical company in India, took an organic approach to cultural shift. Employees were given space to internalize and respond to a new corporate purpose, “Good health can’t wait,” with the goal “to demonstrate this idea in action, not talk about it.” The article encourages managers to “look for the places where the movement faces resistance and experiences friction. They often indicate where the dominant organizational design and culture may need to evolve.”

The “Pirate Paradigm” can be harnessed to drive change, but it’s important to ask yourself whether the result will grow beyond a single project. And a very pirate question is whether you will be rewarded given the typical swamp-march, riddled with quicksand, that characterizes cultural change in many organizations. Unfortunately, the new Analytical leader is often an unwitting Pirate who realizes too late that the value from data will never be achieved due to her small voice in the existing corporate culture. Single projects are delivered, but they are one-hit-wonders eventually lost at sea.

The good news is that analytical culture can be hacked by the Pirate Paradigm. With a strong thirst for innovation and smelling the value from positive cultural change, organizations are creating new and safer paths for aspiring Pirates to follow. Some are even starting to use analytics for measuring cultural alignment.

Creating a learning environment where your crew shares in the adventure, and the plunder, is one of the most effective ways for initiating a longer-term shift in Analytical culture. More on this topic in a subsequent post…for now, find your eye-patch and get ready to fly the Jolly Roger!

Forward Thinkers, Strategy

Elevating Analytics: Jason Thompson & 33 Sticks

Jason Thompson and I share many things in common. We were born a few days apart. We recall spending too much time playing games on Apple IIe computers. We have an almost spiritual response to most of the Coen brothers’ movies. And we have been collaborating professionally for about ten years. I traveled to Utah to learn more about how 33 Sticks, the Analytics boutique he founded with Hila Dahan, inspires customers to work differently.

Jason and Hila founded 33 Sticks about seven years ago and I’ve experienced first-hand the key principles that define 33 Sticks’ competitive advantage: the company employs a handful of rock star employees who typically work (very) remotely with clients and religiously abstain from billing by the hour. Sounds simple…but speak with any 33 Sticks customer and you will hear something more…a deeper connection to the 33 Sticks team where personal stories are shared freely and relationships span multiple companies.

As I drive the 30 minutes from Salt Lake City to Jason’s home near American Fork, the landscape gently reminds me that I am traveling a world away from my home outside of Boston. Mountains are always present in this part of the country, and distance is faithfully measured relative to the Salt Lake Temple downtown. As I drive farther from Salt Lake, Google Maps struggles to finish announcing intersections before I pass through them. But then I reach a point where the mountains seem to take over, streets have names, and horses linger in open grass fields between manicured subdivisions. Tech is growing here at a torrid pace, and traffic is starting to grind along the wide roads. I arrive at Jason’s home, the closest thing to a headquarters for 33 Sticks, towards the end of the day.

Like all 33 Sticks employees, Jason works from a home office. “The Dude” hangs on one wall, painted by an artist clearly inspired by both Van Gogh and The Big Lebowski. An espresso maker sits peacefully nearby. Various inspirational business books and soccer club memorabilia are neatly arranged on a floor-to-ceiling bookshelf opposite the three bay windows that fill the home office with light. We spoke about 33 Sticks at length during my short visit, and the following is edited and excerpted from our conversation and an interview conducted remotely about a month later:

What are some of the challenges you have had to overcome to stay true to the purpose, or mission, of 33 Sticks?

Starting a business is difficult, especially if you are starting it with no money. You will be challenged to compromise your ideals for money…should I take a project just because it pays well even if it doesn’t align with what I want to do? One of our earliest, hardest decisions at 33 Sticks was to refuse to bill by the hour. And we turned down a lot of technical implementation projects because we want to help our clients solve a larger problem, or condition. Sure…we can implement Adobe but we want to help our customers navigate a more strategic journey and we feel that billing by the hour is in opposition to that goal.

Refusing to bill by the hour has been raised to a moral or ethical level at 33 Sticks…why is that? Why does it matter so much?

It’s part of our ideology…we want long term relationships with clients and we want to help them get to that next level. Billing by the hour directly competes with that goal…it rewards consultants for taking a long time to solve problems. Clients want problems solved quickly. By removing the billable hour we remove any incentive to just take our customer’s time. We’ve worked hard to educate the market in this area…and we’ve made a lot of progress…but it’s still a difficult conversation to have and there are companies who simply cannot buy our services without charging by the hour.

It’s also critical for our employees…as a manager I immediately focus on utilization as a key measure if we bill by the hour. By removing the billable hour we’re creating space for consultants to think. One of our best and most difficult decisions has been to remain faithful to our ideals since day one. Our employees can count on the fact that we will always remain true to our principles.

In taking the long term view towards client relationships, 33 Sticks clearly focuses on different measures. How do you measure success if you’re not focused on measures such as utilization?

If someone from an ivy league business school took a look at 33 Sticks they would be quick to point out that we could easily be making twice our current Revenue. There is a lot of money to be made in technical implementation…there is more money to be made by billing more hours or at higher rates. I really believe in the ideas of Yvon Chouinard, founder of Patagonia, who mastered the long term customer relationship. At 33 Sticks, our only measure is whether our decisions are in the best interest of our client’s satisfaction, and the satisfaction of our employees. Yes, we have more work to do to up front to demonstrate the premium value we offer. But once customers start working with 33 Sticks and experiencing the difference, we know we are establishing a long term customer relationship that will pay off. The work almost becomes an excuse to have these deeper, personal relationships. I’m often criticized for encouraging more personal conversations with customers or employees, such as saying it’s OK to treat them like family, to discuss vacations and share in life events. I feel that our focus on the personal, on the human challenges of walking the analytical journey, is a quality that separates 33 Sticks in the marketplace.

By renouncing the billable hour and advocating for remote work, it feels as if 33 Sticks has a social mission to change the way people work. Would you agree?

Absolutely…if we stay on the Patagonia theme and Yvon’s book “Let My People Go Surfing” the fact that Patagonia makes gear or climbing equipment is secondary to providing opportunities for social responsibility and for different experiences. We have a client who works for a 100 year-old publication, not an organization that you would associate with change, and he went to his management and asked to work with his family from Hawaii for a year. That’s the kind of personal change and new opportunity 33 Sticks wants to encourage. Analytics is just a way for us to to effect social change, to help people find different ways of doing work. 33 Sticks works with some very large brands that make billions of dollars. And sure, we can help them make millions more, but that isn’t personally fulfilling and we work with a lot of clients who feel unfulfilled. At 33 Sticks we want to lead people to a better way of doing work and by extension a better life.

The social mission of 33 Sticks is core to its success…and you’ve mentioned that technical ability is a given in the Analytics business. Do you feel that it’s possible to start a business without the technical acumen?

Absolutely…take a look at the story of Charity Water in the book ‘Thirst.’ Scott Harrison started without clue of how to bring clean drinking water to people around the Globe. He had skills as a nightclub promoter, but he had to learn all of his technical skills along the way.

What are some of the challenges that 33 Sticks faces today? And what ambitions do you have for the company?

We spend a lot of time fighting “good enough.” We could make a lot of money just doing work that is good enough for our customers. Hila has been the driving force behind the quality of 33 Sticks’ work. Early on we decided to stick to our highest standards of quality, and Hila champions this ideal with every client engagement.

My ambition for 33 Sticks is to have a larger voice in changing the culture or direction of a business. It’s about scaling our social mission of changing the way people do work to create an environment that is more fulfilling for everyone. And this relates to our passion for working remotely. I should’t dictate where you do your work…I also have no interest in chasing the changes in technology…it’s too hard to keep up with. We have done a lot of work with Adobe over the years, but we don’t want to be perceived only as an Adobe expert. We want to continue to grow our role as personal business advisers for those companies seeking more fulfilling ways of doing business.

Jason Thompson is the co-founder of 33 Sticks, a boutique Analytics consultancy. He is also an incredible chef and aspiring barista…the author can vouch for the latte Jason created with that humble espresso maker.

Listen to this, Strategy

Investing in your Customers with MIT’s Michael Schrage

Audio

What is the one question you should be asking your customers that will completely change the way you think about your business? Similar in power to Levitt’s famous “What business are you in?” question, this new question, “The Ask” will revolutionize the way you think about customers and their value. Author Michael Schrage, a Research Fellow at the MIT Center for Digital Business, explains what “The Ask” is and, why is it so powerful? Along the way he shares examples from Apple, Dyson, McDonalds, the pharmaceutical industry and more who have reaped the benefits of how organizations can and should create value.

from Ambition Data