𖣯Strategic Management: Strategic Perspectives (Part II: The Elephant in the Room)

Strategic Management Perspectives

There’s an ancient parable about several blind people who touch a shape they had never met before, an elephant, and try to identify what it is. The elephant is big, more than each person can sense through direct experience, and people’s experiences don’t correlate to the degree that they don’t trust each other, the situation escalating upon case. The moral of the parable is that we tend to claim (absolute) truths based on limited, subjective experience [1], and this can easily happen in business scenarios in which each of us has a limited view of the challenges we are facing individually and as a collective. 

The situation from the parable can be met in business scenarios, when we try to make sense of the challenges we are faced with, and we get only a limited perspective from the whole picture. Only open dialog and working together can get us closer to the solution! Even then, the accurate depiction might not be in sight, and we need to extrapolate the unknown further.  

A third-party consultant with experience might be the right answer, at least in theory, though experience and solutions are relative. The consultant might lead us in a direction, though from this to finding the answer can be a long way that requires experimentation, a mix of tactics and strategies that change over time, more sense-making and more challenges lying ahead. 

We would like a clear answer and a set of steps that lead us to the solution, though the answer is as usual, it depends! It depends on the various forces/drivers that have the biggest impact on the organization, on the context, on the organization’s goals, on the resources available directly or indirectly, on people’s capabilities, the occurrences of external factors, etc. 

In many situations the smartest thing to do is to gather information, respectively perspectives from all the parties. Tools like brainstorming, SWOT/PESTLE analysis or scenario planning can help in sense-making to identify the overall picture and where the gravity point lies. For some organizations the solution will be probably a new ERP system, or the redesign of some processes, introduction of additional systems to track quality, flow of material, etc. 

A new ERP system will not necessarily solve all the issues (even if that’s the expectation), and some organizations just try to design the old processes into a new context. Process redesign in some areas can be upon case a better approach, at least as primary measure. Otherwise, general initiatives focused on quality, data/information management, customer/vendor management, integrations, and the list remains open, can provide the binder/vehicle an organization needs to overcome the current challenges.

Conversely, if the ERP or other strategical systems are 10-20 years old, then there’s indeed an elephant in the room! Moreover, the elephant might be bigger than we can chew, and other challenges might lurk in its shadow(s). Everything is a matter of perspective with no apparent unique answer. Thus, finding an acceptable solution might lurk in the shadow of the broader perspective, in the cumulated knowledge of the people experiencing the issues, respectively in some external guidance. Unfortunately, the guides can be as blind as we are, making limited or no important impact. 

Sometimes, all it’s needed is a leap of faith corroborated with a set of tactics or strategies kept continuously in check, redirected as they seem fit based on the knowledge accumulated and the challenges ahead. It helps to be aware of how others approached the same issues. Unfortunately, there’s no answer that works for all! In this lies the challenge, in identifying what works and makes sense for us!

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Resources:
[1] Wikipedia (2024) Blind men and an elephant [link]

🗄️Data Management: Data Governance (Part II: Heroes Die Young)

Data Management Series

In the call for action there are tendencies in some organizations to idealize and overcharge main actors' purpose and image when talking about data governance by calling them heroes. Heroes are those people who fight for a goal they believe in with all their being and occasionally they pay the supreme tribute. Of course, the image of heroes is idealized and many other aspects are ignored, though such images sell ideas and ideals. Organizations might need heroes and heroic deeds to change the status quo, but the heroism doesn't necessarily payoff for the "heroes"! 

Sometimes, organizations need a considerable effort to change the status quo. It can be people's resistance to new, to the demands, to the ideas propagated, especially when they are not clearly explained and executed. It can be the incommensurable distance between the "AS IS" and the "TO BE" perspectives, especially when clear paths aren't in sight. It can be the lack of resources (e.g., time, money, people, tools), knowledge, understanding or skillset that makes the effort difficult. 

Unfortunately, such initiatives favor action over adequate strategies, planning and understanding of the overall context. The call do to something creates waves of actions and reactions which in the organizational context can lead to storms and even extreme behavior that ranges from resistance to the new to heroic deeds. Finding a few messages that support the call for action can help, though they can't replace the various critical for success factors.

Leading organizations on a new path requires a well-defined realistic strategy, respectively adequate tactical and operational planning that reflects organizations' specific needs, knowledge and capabilities. Just demanding from people to do their best is not enough, and heroism has chances to appear especially in this context. Unfortunately, the whole weight falls on the shoulders of the people chosen as actors in the fight. Ideally, it should be possible to spread the whole weight on a broader basis which should be considered the foundation for the new. 

The "heroes" metaphor is idealized and the negative outcome probably exaggerated, though extreme situations do occur in organizations when decisions, planning, execution and expectations are far from ideal. Ideal situations are met only in books and less in practice!

The management demands and the people execute, much like in the army, though by contrast people need to understand the reasoning behind what they are doing. Proper execution requires skillset, understanding, training, support, tools and the right resources for the right job. Just relying on people's professionalism and effort is not enough and is suboptimal, but this is what many organizations seem to do!

Organizations tend to respond to the various barriers or challenges with more resources or pressure instead of analyzing and depicting the situation adequately, and eventually change the strategy, tactics or operations accordingly. It's also difficult to do this as long an organization doesn't have the capabilities and practices of self-check, self-introspection, self-reflection, etc. Even if it sounds a bit exaggerated, an organization must know itself to overcome the various challenges. Regular meetings, KPIs and other metrics give the illusion of control when self-control is needed. 

Things don't have to be that complex even if managing data governance is a complex endeavor. Small or midsized organizations are in theory more capable to handle complexity because they can be more agile, have a robust structure and the flow of information and knowledge has less barriers, respectively a shorter distance to overcome, at least in theory. One can probably appeal to the laws and characteristics of networks to understand more about the deeper implications, of how solutions can be implemented in more complex setups.

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🧭Business Intelligence: Perspectives (Part XV: From Data to Storytelling III)

Business Intelligence Series 

As children we heard or later read many stories, and even if few remained imprinted in memory, we can still recognize some of the metaphors and ideas used. Stories prepared us for life, and one can suppose that the business stories we hear nowadays have similar intent, charge and impact. However, if we dig deeper into each story and dissect it, we may be disappointed by its simplicity, the resemblance to other stories, to what we've heard over time. Moreover, stories can bring also negative connotations, that can impact any other story we hear. 

From the scores or hundreds of distinct stories that have been told, few reach a magnitude that can become more than the stories themselves, few become a catalyst for the auditorium, and even then they tend to manipulate. Conversely, well-written transformative stories can move mountains when they resonate with the auditorium. In a leader’s motivational speech such stories can become a catalyst that moves people in the intended direction.

Children stories are quite simple and apparently don’t need special constructs even if the choice of words, structure and messages is important. Moving further into organizations, storytelling becomes more complex, upon case, structures and messages need to follow certain conventions within some politically correct scripts. Facts become important to the degree they serve the story, though the purposes they serve change with time, becoming secondary to the story. Storytelling becomes thus just of way of changing the facts as seems fit to the storyteller. 

Storytelling has its role in organizations for channeling the multitude of messages across various structures. However, the more one hears the word storytelling, the more likely one is closer to fiction than to business decision-making. It's also true that the word in itself carries a power we all tasted during childhood and why not much later. The word has a magic power that appeals to our memories, to our feelings, to our expectations. However, as soon one's expectations are not met, the fight with the chimeras turns into a battle of our own. Yes, storytelling has great power when used right, when there's a story to tell, when the business narratives are worth telling. 

The problem with stories is that no matter how much they are based on real facts or happenings, they become fictitious in time, to the degree that they lose some of the most important facts they were based on. That’s valid especially when there’s no written track of the story, though even then various versions of the story can multiply outside of the standard channels and boundaries. 

Even if the author tried to keep the story as close to the facts, the way stories are understood, remembered and retold depend on too many factors - the words used, the degree to which metaphors and similar elements are understood, remembered and transmitted correctly, the language used, the mental structure existing in the auditorium, the association of words, ideas or metaphors, etc.

Unfortunately, the effect of stories can be negative too, especially when stories are designed to manipulate the auditorium beyond any ethical norms. When they don’t resonate with the crowd or are repeated unnecessary, the narratives may have adverse effects and the messages can get lost in the crowd or create resistance. Moreover, stories may have a multifold and opposite effect within different segments of the auditorium. 

Storytelling can make hearts and minds resonate with the carried messages, though misdirected, improper or poorly conceived stories have also the power to destroy all that have been built over the years. Between the two extremes there’s a small space to send the messages across!

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🧭Business Intelligence: Perspectives (Part XIII: From Data to Storytelling I)

Business Intelligence Series

Data is an amalgam of signs, words, numbers and other visual or auditory elements used together to memorize, interpret, communicate and do whatever operation may seem appropriate with them. However, the data we use is usually part of one or multiple stories - how something came into being, what it represents, how is used in the various mental and non-mental processes - respectively, the facts, concepts, ideas, contexts places or other physical and nonphysical elements that are brought in connection with.

When we are the active creators of a story, we can in theory easily look at how the story came into being, the data used and its role in the bigger picture, respective the transformative elements considered or left out, etc. However, as soon we deal with a set of data, facts, or any other elements of a story we are not familiar with, we need to extrapolate the hypothetical elements that seem to be connected to the story. We need to make sense of these elements and consider all that seems meaningful, what we considered or left out shaping the story differently. 

As children and maybe even later, all of us dealt with stories in one way or another, we all got fascinated by metaphors' wisdom and felt the energy that kept us awake, focused and even transformed by the words coming from narrator's voice, probably without thinking too much at the whole picture, but letting the words do their magic. Growing up, the stories grew in complexity, probably became richer in meaning and contexts, as we were able to decipher the metaphors and other elements, as we included more knowledge about the world around, about stories and storytelling.

In the professional context, storytelling became associated with our profession - data, information, knowledge and wisdom being created, assimilated and exchanged in more complex processes. From, this perspective, data storytelling is about putting data into a (business) context to seed cultural ground, to promote decision making and better understanding by building a narrative around the data, problems, challenges, opportunities, and further organizational context.

Further on, from a BI's perspective, all these cognitive processes impact on how data, information and knowledge are created, (pre)processed, used and communicated in organizations especially when considering data visualizations and their constituent elements (e.g. data, text, labels, metaphors, visual cues), the narratives that seem compelling and resonate with the auditorium. 

There's no wonder that data storytelling has become something not to neglect in many business contexts. Storytelling has proved that words, images and metaphors can transmit ideas and knowledge, be transformative, make people think, or even act without much thinking. Stories have the power to seed memes, ideas, or more complex constructs into our minds, they can be used (for noble purposes) or misused. 

A story's author usually takes compelling images, metaphors, and further elements, manipulates them to the degree they become interesting to himself/herself, to the auditorium, to the degree they are transformative and become an element of the business vocabulary, respectively culture, without the need to reiterate them when needed to bring more complex concepts, ideas or metaphors into being.  

A story can be seen as a replication of the constituting elements, while storytelling is a set of functions that operate on them and change the initial structure and content into something that might look or not like the initial story. Through retelling and reprocessing in any form, the story changes independently of its initial form and content. Sometimes, the auditorium makes connections not recognized or intended by the storyteller. Other times, the use and manipulation of language makes the story change as seems fit. 

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📉Graphical Representation: Metaphor (Just the Quotes)

"Every metaphor is the tip of a submerged model. […] Use of theoretical models resembles the use of metaphors in requiring analogical transfer of a vocabulary. Metaphor and model-making reveal new relationships; both are attempts to pour new content into old bottles." (Max Black," Models and Metaphors", 1962)

"One should employ a metaphor in science only when there is good evidence that an important similarity or analogy exists between its primary and secondary subjects. One should seek to discover more about the relevant similarities or analogies, always considering the possibility that there are no important similarities or analogies, or alternatively, that there are quite distinct similarities for which distinct terminology should be introduced. One should try to discover what the 'essential' features of the similarities or analogies are, and one should try to assimilate one’s account of them to other theoretical work in the same subject area - that is, one should attempt to explicate the metaphor." (Richard Boyd, "Metaphor and Theory Change: What Is ‘Metaphor’ a Metaphor For?", 1979)

"The essence of a graphic display is that a set of numbers having both magnitudes and an order are represented by an appropriate visual metaphor - the magnitude and order of the metaphorical representation match the numbers. We can display data badly by ignoring or distorting this concept." (Howard Wainer, "How to Display Data Badly", The American Statistician Vol. 38(2), 1984) 

"Despite the prevailing use of graphs as metaphors for communicating and reasoning about dependencies, the task of capturing informational dependencies by graphs is not at all trivial." (Judea Pearl, "Probabilistic Reasoning in Intelligent Systems: Network of Plausible Inference", 1988)

"Perhaps our ultimate understanding of scientific topics is measured in terms of our ability to generate metaphoric pictures of what is going on. Maybe understanding is coming up with metaphoric pictures." (Per Bak, "How Nature Works: the science of self-organized criticality", 1996)

"Make use of a simple data metaphor. Regardless of the concept you are trying to convey with an information graphic, you must make sure that the visual metaphor (i.e., a circle to represent a whole, as with a pie chart) be clear and logical. Don’t get so caught up in being clever that you make illogical comparisons or use unclear metaphors. In other words, don’t make your readers have to think too hard to get the point. They’ll appreciate you for it!" (Jennifer George-Palilonis," A Practical Guide to Graphics Reporting: Information Graphics for Print, Web & Broadcast", 2006)

"Specific numbers, visual descriptions of objects or events and identifiable locations don’t always jump out, and a graphic may not always present itself right away. A good graphics reporter will often discover graphics potential in less obvious ways. Is the explanation in a story getting bogged down and hard to follow? If so, can the information be organized differently? Perhaps in a more graphic manner? Is there information that hat can be conveyed conceptually to put a thought or idea into a more visual perspective? Visual metaphors (or 'data metaphors' in the case of mathematical or quantifiable information) often make it easier for people to digest information." (Jennifer George-Palilonis," A Practical Guide to Graphics Reporting: Information Graphics for Print, Web & Broadcast", 2006)

"All graphics by definition employ metaphors, but some are more metaphorical than others. Sometimes the metaphor escapes from its graphical cage, takes on a life of its own and provides exciting deception opportunities." (Nicholas Strange, "Smoke and Mirrors: How to bend facts and figures to your advantage", 2007)

"[…] a graph is nothing but a visual metaphor. To be truthful, it must correspond closely to the phenomena it depicts: longer bars or bigger pie slices must correspond to more, a rising line must correspond to an increasing amount. If a graphical depiction of data does not faithfully follow this principle, it is almost sure to be misleading. But the metaphoric attachment of a graphic goes farther than this. The character of the depiction ism a necessary and sufficient condition for the character of the data. When the data change, so too must their depiction; but when the depiction changes very little, we assume that the data, likewise, are relatively unchanging. If this convention is not followed, we are usually misled." (Howard Wainer, "Graphic Discovery: A trout in the milk and other visuals" 2nd, 2008)

"All sorts of metaphorical interpretations are culturally ingrained. An astute designer will think about these possible interpretations and work with them, rather than against them." (Noah Iliinsky & Julie Steel, "Designing Data Visualizations", 2011)

"Visual metaphors are about integrating a certain visual quality in your work that somehow conveys that extra bit of connection between the data, the design, and the topic. It goes beyond just the choice of visual variable, though this will have a strong influence. Deploying the best visual metaphor is something that really requires a strong design instinct and a certain amount of experience." (Andy Kirk, "Data Visualization: A successful design process", 2012)