Business Intelligence: Data Culture (Part II: Leadership, Necessary but not Sufficient)

Business Intelligence Series

Continuing the idea from the previous post on Brent Dykes’ article on data culture and Generative AI [1], it’s worth discussing about the relationship between data culture and leadership. Leadership belongs to a list of select words everybody knows about but fails to define them precisely, especially when many traits are associated with leadership, respectively when most of the issues existing in organizations ca be associated with it directly or indirectly.

Take for example McKinsey’s definition: "Leadership is a set of behaviors used to help people align their collective direction, to execute strategic plans, and to continually renew an organization." [2] It gives an idea of what leadership is about, though it lacks precision, which frankly is difficult to accomplish. Using modifiers like strong or weak with the word leadership doesn’t increase the precision of its usage. Several words stand out though: direction, strategy, behavior, alignment, renewal.

Leadership is about identifying and challenging the status quo, defining how the future will or could look like for the organization in terms of a vision, a mission and a destination, translating them into a set of goals and objectives. Then, it’s about defining a set of strategies, focusing on transformation and what it takes to execute it, adjusting the strategic bridge between goals and objectives, or, reading between the lines, identifying and doing the right things, being able to introduce a new order of things, reinventing the organization, adapting the organization to circumstances.

Aligning resumes in aligning the various strategies, aligning people with the vision and mission, while renewal is about changing course in response to new information or business context, identifying and transforming weaknesses into strengths, risks into opportunities, respectively opportunities into certitudes, seeing possibilities and multiplying them.

Leadership is also about working on the system, addressing the systemic failure, addressing structural and organizational issues, making sure that the preconditions and enablers for organizational change are in place, that no barriers exist or other factors impact negatively the change, that the positive aspects of complex systems like emergence or exponential growth do happen in time.

And leadership is about much more - interpersonal influence, inspiring people, Inspiring change, changing mindsets, assisting, motivating, mobilizing, connecting, knocking people out of their comfort zones, conviction, consistency, authority, competence, wisdom, etc. Leadership seems to be an idealistic concept where too many traits are considered, traits that ideally should apply to the average knowledge worker as well.

An organization’s culture is created, managed, nourished, and destroyed through leadership, and that’s a strong statement and constraint. By extension this statement applies to the data culture as well. It’s about leading by example and not by words or preaching, and many love to preach, even when no quire is around. It’s about demanding the same from the managers as managers demand from their subalterns, it’s about pushing the edges of culture. As Dykes mentions, it should be about participating in the data culture initiatives, making expectations explicit, and sharing mental models.

Leadership is a condition necessary but not sufficient for an organizations culture to mature. Financial and other type of resources are needed, though once a set of behaviors is seeded, they have the potential to grow and multiply when the proper conditions are met. Growth occurs also by being aware of what needs to be done and doing it day by day consciously, through self-mastery. Nowadays there are so many ways to learn and search for support, one just needs a bit of curiosity and drive to learn anything. Blaming in general the lack of leadership is just a way of passing the blame one level above on the command chain.

Resources:
[1] Forbes (2024) Why AI Isn’t Going To Solve All Your Data Culture Problems, by Brent Dykes (link)
[2] McKinsey (2022) What is leadership? (link)

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Strategic Management: Defining the Strategy

In a previous post an organization’s strategy was defined as a set of coordinated and sustainable actions following a set of well-defined goals, actions devised into a plan and designed to create value and overcome an organization’s challenges. In what follows are described succinctly the components of the strategy.

A strategy’s definition should start with the identification of organization’s vision, where the organization wants to be in the future, its mission statement, a precise description of what an organization does in turning the vision from concept to reality, its values - traits and qualities that are considered as representative, and its principles – the guiding laws and truths for action. All these components have the purpose at defining at high-level the where (the vision), the why (the mission), the what (the core values) and by which means (the principles) of the strategy.

One of the next steps that can be followed in parallel is to take inventory of the available infrastructure: systems, processes, procedures, practices, policies, documentation, resources, roles and their responsibilities, KPIs and other metrics, ongoing projects and initiatives. Another step resumes in identifying the problems (challenges), risks and opportunities existing in the organization as part of a SWOT analysis adjusted to organization’s internal needs. One can extend the analysis to the market and geopolitical conditions and trends to identify further opportunities and risks. Within another step but not necessarily disconnected from the previous steps is devised where the organization could be once the problems, risks, threats and opportunities were addressed.

Then the gathered facts are divided into two perspectives – the “IS” perspective encompasses the problems together with the opportunities and threats existing in organization that define the status quo, while the “TO BE” perspective encompasses the wished state. A capability maturity model can be used to benchmark an organization’s current maturity in respect to industry practices, and, based on the wished capabilities, to identify organization’s future maturity.

Based on these the organization can start formulating its strategic goals – a set of long-range aims for a specific time-frame, from which are derived a (hierarchical) set of objectives, measurable steps an organization takes in order to achieve the goals. Each objective carries with it a rational, why the objective exists, an impact, how will the objective change the organization once achieved, and a target, how much of the objective needs to be achieved. In addition, one can link the objectives to form a set of hypothesis - predictive statements of cause and effect that involve approaches of dealing with the uncertainty. In order to pursue each objective are devised methods and means – the tactics (lines of action) that will be used to approach the various themes. It’s important to prioritize the tactics and differentiate between quick winners and long-term tactics, as well to define alternative lines of actions.

Then the tactics are augmented in a strategy plan (roadmap) that typically covers a minimum of 3 to 5 years with intermediate milestones. Following the financial cycles the strategy is split in yearly units for each objective being assigned intermediate targets. Linked to the plan are estimated the costs, effort and resources needed. Last but not the least are defined the roles, management and competency structures, with their responsibilities, competencies and proper level of authority, needed to support strategy’s implementation. Based on the set objectives are devised the KPIs used to measure the progress (success) and stir the strategy over its lifecycle.

By addressing all these aspects is created thus a first draft of the strategy that will need several iterations to mature, further changes deriving from the contact with the reality.

Strategic Management: Mission (Just the Quotes)

"Good mission statements focus on a limited number of goals, stress the company's major policies and values, and define the company's major competitive scopes." (Philip Kotler, "Marketing Management", 1967)

"'Structure follows strategy' is one of the fundamental insights we have acquired in the last twenty years. Without understanding the mission, the objectives, and the strategy of the enterprise, managers cannot be managed, organizations cannot be designed, managerial jobs cannot be made productive. [...] Strategy determines what the key activities are in a given business. And strategy requires knowing 'what our business is and what it should be'." (Peter F Drucker, "Management: Tasks, Responsibilities, Practices", 1973)

"In general, growth is an intrinsic source of change with potentially unintended effects and some subunits are better positioned than others to protect themselves against such effects. Oligarchical tendencies are present in almost all membership-based organizations, such as unions and voluntary associations, and if unchecked, can lead to transformations. Organizations with diffuse goals or innovative leadership are sometimes able to survive the crisis of complementing their original mission by moving onto other goals." (Howard E Aldrich, "Organizations and Environments", 1979)

"The key mission of contemporary management is to transcend the old models which limited the manager's role to that of controller, expert or morale booster. These roles do not produce the desired result of aligning the goals of the employees and the corporation. [...] These older models, vestiges of a bygone era, have served their function and must be replaced with a model of the manager as a developer of human resources." (Michael Durst, "Small Systems World", 1985)

"We manage with a mission. We don't strive for superior or excellent management. We strive to manage for the mission. We never lose sight of the fact that we are in this business to help girls grow." (Frances Hesselbein, Management Review, 1987)

"A mission statement should define the business that the organization wants to be in, not necessarily what it is in." (Russell L Ackoff, "Re-Creating the Corporation", 1999)

"An organization's mission statement: (1) should contain its reasons for existence and its most general aspirations, its ideals. (2) It should identify in very general terms the way(s) by which the organization will pursue its ideals, that is, the business it wants to be in. (3) It should formulate the ways by which it will attempt to serve each of its stakeholder groups. (4) It should meet the preceding requirements in a way that is exciting and challenging to all its stakeholders. Finally, (5) it should establish the uniqueness of the organization." (Russell L Ackoff, "Re-Creating the Corporation", 1999)

"You basically get what you reward. If you want to achieve the goals and reflect the values in your mission statement, then you need to align the reward system with these goals and values." (Stephen Covey, "The 7 Habits of Highly Effective People Personal Workbook", 2000)

"Leadership is much less about what you do, and much more about who you are. If you view leadership as a bag of manipulative tricks or charismatic behaviors to advance your own personal interest, then people have every right to be cynical. But if your leadership flows first and foremost from inner character and integrity of ambition, then you can justly ask people to lend themselves to your organization and its mission." (Frances Hesselbein, "Hesselbein on Leadership", 2002)

"In virtually every organization, regardless of mission and function, people are frustrated by problems that seem unsolvable." (Meg Wheatley, "Finding Our Way: Leadership for an Uncertain Time", 2005)

"Mission is at the heart of what you do as a team. Goals are merely steps to its achievement." (Patrick Dixon, "Building a Better Business", 2005)

"Strategy is the serious work of figuring out how to translate vision and mission into action. Strategy is a general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization reach its goals. Like vision, strategy changes, but successful companies develop strategies that focus on core competence, develop synergy, and create value for customers. Strategy is implemented through the systems and structures that are the basic architecture for how things get done in the organization." (Richard L Daft, "The Leadership Experience" 4th Ed., 2008)

"The organizations of the future are filled with smart, fast, flexible people on a mission." (Seth Godin, "Tribes: We need you to lead us", 2008)

"A clear, thoughtful mission statement, developed collaboratively with and shared with managers, employees, and often customers, provides a shared sense of purpose, direction, and opportunity." (Philip Kotler & Kevin L Keller, "Marketing Management" 15th Ed., 2016)

"Good mission statements have five major characteristics. (1) They focus on a limited number of goals. (2) They stress the company’s major policies and values. (3) They define the major competitive spheres within which the company will operate. (4) They take a long-term view. (5) They are as short, memorable, and meaningful as possible." (Philip Kotler & Kevin L Keller, "Marketing Management" 15th Ed., 2016)

Strategic Management: Strategic Plan (Definitions)

"A long-range plan that serves as a business’s road map for the future. It includes the product lines and services, the number of employees, technology requirements, industry trends, competitor analysis, revenue and profitability goals, types of customers, and long-range marketing plans." (Gina Abudi & Brandon Toropov, "The Complete Idiot's Guide to Best Practices for Small Business", 2011)

"A high-level document that explains the organization's vision and mission, plus the approach that will be adopted to achieve this mission and vision, including the specific goals and objectives to be achieved during the period covered by the document." (Project Management Institute, "The Standard for Portfolio Management" 3rd Ed., 2012)

"Strategy gives a helicopter view on direction. A strategic plan is a ground-level plan of attack. It represents the first step in strategy implementation." (Vaughan Evans, "The Financial Times Essential Guide to Developing a Business Strategy", 2013)

"The strategic plan is a document that articulates the firm's goals, define the course of actions required to achieve those goals and to indicate how to improve the firm's performance." (Joshua Y Abor, "Entrepreneurial Finance for MSMEs: A Managerial Approach for Developing Markets", 2016)

"A document used to communicate with the organization the organization’s goals, the actions needed to achieve those goals, and all the other critical elements developed during the planning exercise." (William Stallings, "Effective Cybersecurity: A Guide to Using Best Practices and Standards", 2018)

"A strategic plan defines who you are as a business and lists concrete actions to achieve your goals." (BDC) [link]

"A strategic plan is a document used to communicate with the organization the organizations goals, the actions needed to achieve those goals and all of the other critical elements developed during the planning exercise." (Balanced Scorecard Institute) [link]

"A visual representation of an organization’s strategy and the objectives that must be met to effectively reach its mission. A strategy plan can be used to communicate, motivate and align the organization to ensure successful execution." (Intrafocus)

Strategic Management: Critical Success Factor (Definitions)

"A brief listing of what should be monitored closely on an ongoing basis to ensure that the project is proceeding adequately. Also known as the project vital signs or metrics." (Timothy J  Kloppenborg et al, "Project Leadership", 2003)

"Those things which must go right for the organization to achieve its mission." (Tilak Mitra et al, "SOA Governance", 2008)

[success criteria:] "According to cybernetic theory, in a feedback loop the set point that determines the extent to which a system process meets its process objective. This must be expressed in terms of either a 'Minimum value' or a 'Maximum value' of an attribute." (David C Hay, "Data Model Patterns: A Metadata Map", 2010)

"An element that is necessary for an organization or project to achieve its mission." (Janice M Roehl-Anderson, "IT Best Practices for Financial Managers", 2010)

[success criteria:] "A measurable result the project has to deliver in order for the customer to say the project is a success." (Bonnie Biafore, "Successful Project Management: Applying Best Practices and Real-World Techniques with Microsoft® Project", 2011)

"Activities that your business undertakes with the aim of meeting strategic long-term goals. CSFs are measured with performance indicators." (Gina Abudi & Brandon Toropov, "The Complete Idiot's Guide to Best Practices for Small Business", 2011)

"One of the few most important prerequisite conditions necessary for an enterprise to reach its goals." (DAMA International, "The DAMA Dictionary of Data Management", 2011)

"The most essential factors that must go right or be closely tracked in order to ensure an organization's survival and success." (Linda Volonino & Efraim Turban, "Information Technology for Management" 8th Ed., 2011)

[success criteria:] "Specific and unequivocal statements that indicate how the project manager or project sponsor will know that a project achieved its goal, often reflecting strategic business goals." (Bonnie Biafore & Teresa Stover, "Your Project Management Coach: Best Practices for Managing Projects in the Real World", 2012)

"The requirements for strategic success in a particular industry at a particular point in time." (Duncan Angwin & Stephen Cummings, "The Strategy Pathfinder" 3rd Ed., 2017)

"Sources of competitive advantage within an industry." (Robert M Grant, "Contemporary Strategy Analysis"10th Ed., 2018)

"The key things that the organization must do extremely well to overcome today’s problems and the roadblocks to meeting the Mission and Vision Statements." (H James Harrington & William S Ruggles, "Project Management for Performance Improvement Teams", 2018)

"An element necessary for an organization or project to achieve its mission. Critical success factors are the critical factors or activities required for ensuring the success." (ISTQB)

"something that must happen if a process, project, plan or service is to succeed" (ITIL)

Strategic Management: Mission (Definitions)

"A written summary describing why an organization exists." (Timothy J  Kloppenborg et al, "Project Leadership", 2003)

"A brief declaration of why the organization, group, or department exists. It provides the foundation on which the entity will build its products and services and identifies to whom it will offer them." (Teri Lund & Susan Barksdale, "10 Steps to Successful Strategic Planning", 2006)

"A stated purpose, intent, or goal. In the Harmony/ESW process, several work activities have specific missions, including diagram creation and the microcycle." (Bruce P Douglass, "Real-Time Agility: The Harmony/ESW Method for Real-Time and Embedded Systems Development", 2009)

"A statement that describes an organization's purpose or reason for existence." (Bettina M Davis & Wendy L Combsand, "Demystifying Technical Training: Partnership, Strategy, and Execution", 2009)

"A written statement that describes the business’s purpose and provides a sense of direction for the business. It helps management to develop complementary strategies." (Gina Abudi & Brandon Toropov, "The Complete Idiot's Guide to Best Practices for Small Business", 2011)

"Defines why an organization exists." (Linda Volonino & Efraim Turban, "Information Technology for Management" 8th Ed", 2011)

"High-level declaration of the organization's purpose. (6, 622, 666)" (Leslie G Eldenburg & Susan K Wolcott, "Cost Management" 2nd Ed., 2011)

"Explains the fundamental purpose of the company or organization." (Bill Holtsnider & Brian D Jaffe, "IT Manager's Handbook" 3rd Ed., 2012)

"A statement that focuses on the present and identifies what an organization hopes to achieve and/or how it hopes to achieve it. In contrast, a vision statement focuses on the future." (Darril Gibson, "Effective Help Desk Specialist Skills", 2014)

"Short (preferably one or two sentences long) expression of an organization's services, its target market, and its competitive advantages." (Manish Agrawal, "Information Security and IT Risk Management", 2014)

"A brief description of a company’s fundamental purpose that articulates the company’s purpose both for those in the organization and for the public." (Jeffrey Magee, "The Managerial Leadership Bible", 2015)

"A statement of purpose for an organization." (Andrew Pham et al, "From Business Strategy to Information Technology Roadmap", 2016)

"A description of an organization or function’s business, its objectives, and its approach to reach those objectives." (Jonathan Ferrar et al, "The Power of People", 2017)

"An expression of the types of behaviour that an organisation sees as key to achieving its strategy, goals or vision. Generally expressed as a statement." (Duncan Angwin & Stephen Cummings, "The Strategy Pathfinder" 3rd Ed., 2017)

"An organization’s top-level requirements that must be satisfied and the properties with which they must be satisfied, including trustworthiness." (O Sami Saydjari, "Engineering Trustworthy Systems: Get Cybersecurity Design Right the First Time", 2018)

"The stated reason for the existence of the organization. It is usually prepared by the CEO and key members of the executive team and succinctly states what they will achieve or accomplish. It typically is changed only when the organization decides to pursue a completely new market." (H James Harrington & William S Ruggles, "Project Management for Performance Improvement Teams", 2018)

"What an organization does, what its perceived mission or missions are, and what business processes are involved in fulfilling the mission(s)." (William Stallings, "Effective Cybersecurity: A Guide to Using Best Practices and Standards", 2018)

"Elements of organizations describing mission areas, common/shared business services, and organization-wide services. Mission/business segments can be identified with one or more information systems which collectively support a mission/business process." (CNSSI 4009-2015)