Leading in Analytics

TASK 1The Problem

SOLVE THE RIGHT PROBLEM

My friend Polly Mitchell‐Guthrie, an analytics thought leader and senior executive at Kinaxis, likes to say, “Whatever else you do, don't solve the wrong problem.” She is absolutely right! This is actually what scientists call a type III error,¹ finding the right answer to the wrong question (curious about type I and type II errors? See Task: 5 Execution for more). Finding and solving a valuable, worthwhile, and impactful problem in which you can actually succeed is the critical first task, maybe even the most important one, and not as easy as many think.

You can succeed in many low‐value analytics projects and still fail in your business. Not every problem that can be solved is worth solving, nor is every problem worth solving amenable to an analytics solution. There are many high‐value analytics problem areas out there and too little time, talent, and resources to address the important ones, let alone the low‐value ones.

Successfully making a difference with analytics means focusing on finding, screening, prioritizing, and solving the most important and achievable analytics problems for your organization. Our experts agreed that Pareto's 80/20 rule applies here: 20% of solvable problems that come your way will yield about 80% of the value, and the rest should be deprioritized. The unsolvable problems should be handed off to be managed another way.

Knowing where to find the right analytics opportunities for your organization, at the ...