Breakthrough IT

Chapter 6. Show Me the Money

We live in a management culture obsessed with numerical data. Management dashboards, advanced statistical analysis, and complex customer surveys feed the drive to “manage by the numbers.” While the transition away from business decision making based on gut feel and intuition has largely been helpful, we are nearing a numerical crisis. Statistical and numerical analyses drive business decisions without the decision maker fully understanding the components of that number. An even more insidious trend is that the demand for numerical data, coupled with its building complexity, has allowed many “gut feel” predictions to masquerade as hard data, through trendy buzzwords and complex‐looking presentations with little solid data behind them.

Imagine a meeting with the CFO of a large organization. His minions gather around a polished oak boardroom table, the seats filled with women and men in crisp business attire. The lights dim, a projector whirs to life, and the manager du jour glosses over a few introductory slides. Finally, the “meat” of the presentation flashes onto the screen. The grizzled CFO glares at each person in turn, asking for the current financial health of the corporation.

“Well,” quips the first victim, “I've checked with each of the area managers, and as you can see on the slide, they all report a “green” status.

“What does profitability of the new product line look like?” asks the CFO, barely looking away from the dazzling sea of green boxes ...