Connecting analytics to the boardroom

From the recent work that deltaDNA has undertaken with game developers, it's clear the role of the analytics department is changing. In most organisations, it now enjoys a higher profile than ever before. Most in the games business have come to realise the crucial role that analytics can play, and the prominence it deserves in the decision-making process.

That's good news for those working in analytics, of course, people who were previously consigned to distant parts of office buildings, handed worthy but often ignored work. Very few companies are ignoring these teams now.

There are still a number of problems to overcome though, particularly in terms of ensuring that the otherwise healthy flow of information around the business isn't suddenly blocked off once it reaches the boardroom door.

We would suggest there is still a great deal of frustration from both CEOs and analytics teams, and that more can be done to enhance the ability of organisations to act on the implications of insights and improve the quality of decision-making as a result.

At a recent conference on analytics in the video games industry we offered up the following scenario based on my experience and invited comments.

"The majority of CEOs couldn't care less about the journey. They want simple answers that get to the point and (even better) suggest a course of action"

The CEOs of video games companies tend to ask simple questions, like "why is my game not making money?" or "how do we improve our retention rates?"

The analyst's response in turn is "well, it's complicated". And the truth is that it is.

Why does this dialogue grind to a halt in such a way? If you look at analyst presentations to upper management, you'll find that a lot of them describe an elaborate journey to uncover the truth - and there's nothing particularly wrong with that, because analysts are just as fascinated by the journey as the final destination (in this case, the end results).

The majority of CEOs, though, couldn't care less about the journey. They want simple answers that get to the point and (even better) suggest a course of action.

I'd suggest data scientists have a good chance of making their CEOs very happy if they tell them just five actionable things they can do now to make things better overall.

As George Bernard Shaw once said to a correspondent: "Sorry for the long letter, I didn't have time to write a short one." Sometimes succinctness is the harder and more time-consuming work; in other words, learn pithiness and you will be invited back.

Keep it short and simple, and able to be acted on, and frustration on both the part of the analysts and the CEOs is reduced, plus the hard work of the analytics department has a more direct effect on what happens in the boardroom.

What's more, we would add the following suggestion for anyone wanting to help connect data science to business processes for maximum gain.

Look at the size of your teams - if there's one thing that's certain about how best to make businesses effective in this modern, dynamic age, it's that utilising small, multi-disciplinary teams is the most effective way of solving problems, tackling initiatives and maintaining momentum over the longer term.

This idea is nothing new; even in the Roman age keeping teams lean and nimble was a common approach.

"When it comes to creating video games, it makes sense to follow the lead set by Zynga by embedding an analytics specialist into the game development team itself"

When it comes to creating video games, it makes sense to follow the lead set by Zynga by embedding an analytics specialist into the game development team itself. This works so well because the best outcomes are delivered when analysts are intimate with the business challenge, and have the opportunity to collaborate closely with design, production and marketing colleagues.

The process of data mining is a journey, which is why the question and response system has to iterate quickly to get to the real question and the right answer. Those systems slow up and break down as teams get larger and more separated, and it's therefore not surprising that this organisational structure is now widely adopted.

Sure, analytics is now a conversation happening at boardroom level for perhaps the first time ever. For several years now, it hasn't been possible to lead marketing teams without being data literate, and increasingly CEOs find themselves in the same position.

There's no reason for complacency, though, and a lot of work still to do to make sure the valuable work done in the analytics department translates into boardroom decisions.