The Power and Profit of Big Picture Analytics

Michael Ziegler CEO PRIDE Industries in a presentation talked about his role as ambassador of PRIDE’s vision and mission. He has grown PRIDE from $250,000 to $258 million and 5,000 employees because he kept the industry's vision at the forefront.   

When the vision and mission of a business or non-profit is the big picture, the value of any analytics used must be aligned for success. 

Analytics “… to typically use date, statistical and quantitative analysis and fact-based data to measure past performance to guide an organization's business planning."  Webopedia - Business Analytics.   

Analytics must be conducted within the context of the big picture. It is too easy to get mired in the numbers and forget the purpose which is to drive the business or non-profit forward, engaging its customers and clients with superior service and products. 

It was at breakfast on vacation I realized one of our favorite hotel restaurants had been crunching the numbers without the benefit of its mission and success at the forefront. The wonderful coffee had been replaced with a dark, insipid brew, the tasteful sausages were now small and tasteless and the real, fried potatoes had been discarded for heated, frozen lumps that had probably never met a real potato. The once friendly service staff were now just doing their jobs and room service was no longer available.  

The new hotel owner had looked at the numbers and to immediately improve profits had reduced the cost of breakfast. In looking at the big picture, he would have seen the value of a quality breakfast in keeping his current, loyal customer base happy.

Seeing analytics used unsuccessfully, we can do some forecasting imagining the hotel’s upcoming results and future analytics based on:

1.     The number of customers who checked out with the last impression of the cheap breakfast and decided to try another hotel next time.

2.     The reduction of referrals from the locals who previously considered this the best breakfast place now suggesting another hotel to visitors.

3.     The number of customers who expected room service and left the hotel to eat not only breakfast but other meals elsewhere.

The role of business and non-profit leaders is to establish the vision and mission of the organization as the context for analytics. This is big picture analytics enabling a productive future for the business, customers, non-profits and clients. 

 

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