Big data promises to deliver CEOs sophisticated information that could help them cut costs, optimize worker performance and improve products and services. It’s just that many of them aren’t digging in the right place, according to McKinsey & Co.
A study published earlier this year showed only a quarter of senior executives believed their company made highly effective use of data, while another poll showed a mere 2% of leaders though it made a broad, positive impact.
Meanwhile, McKinsey points out that establishing a clear focus is key. Too many companies peer into reams of data hoping for patterns to emerge, it says, while they really should be putting the question horse before the data-collection cart.
That means asking questions about how data could be used to improve specific business functions from the outset, such as “how can we reduce costs?”, or, drilling down even further: “how can we improve the productivity of each member of our team?”
And sometimes the smaller the focus the better.
Even a slight change can give companies an edge over their competitors. “Easy fixes are unlikely, but companies can identify small points of difference to amplify and exploit,” McKinsey said.
It offers the example of a company in the consumer packaged goods sector that wanted to improve the profit margins on its breakfast brands. It got there by deconstructing the entire manufacturing process into sequential increments, then scrutinizing each to potentially unlock value.
It turned out the Eureka moment was found in the oven. Adjusting the baking temperature by just a tiny amount made the product taste better, and also made it cheaper to produce.
McKinsey’s advice to CEOs mirrors a recent study by the Harvard Business Review, which found few companies had successfully applied big data solutions by looking at the data first. “Companies that have been successful in harnessing the power of data start with a specific business problem and then seek data to help in their decision making,” HBR said.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
