Making Better Decisions Faster: Driver Analytics
Consumer products companies that stay flexible and make quick decisions are more likely to succeed in today’s brand new order — a highly complex and fast-changing environment. Are you confident you can make the right decisions against a backdrop of continuous change?
Slow decision-making is compromising your company’s agility
Although 81% of consumer products executives agree that faster decision-making can improve organisational agility, they struggle with planning, decision support and decision-making because information is too detailed and too slow.
Often they focus on items listed in the financial statements rather than the forces that drive value in their business.
This means they are unable to link strategy, resource allocation, planning and reporting. They must rely on a combination of instinct and experience, supported by one-off analysis.
If you can’t make decisions quickly, you can’t compete effectively
Ineffective analysis and information exchange between local units and central headquarters fail to generate insight at the corporate level and enable autonomy at the local level.
Instead, they keep everyone tied up in unproductive detail and encourage proliferation rather than streamlining of decision-making layers.
As a result, companies:
- Miss the ripple effects of issues that impact the whole organisation
- Fail to spot operational improvements
- Are unable to test the “what if” scenarios that improve tactical and strategic decision-making
Turning data overload into strategic insight requires vision and stamina
The biggest challenge is to identify the market, competitor, operational and financial forces that really drive value creation, and then correlate them to each other and to outcome metrics like market share, revenue or margin. We call this “driver analytics.”
Many businesses understand the forces that drive value, but fail to continually and consistently correlate the impact of the most significant drivers across a variety of dimensions and understand their impact on output metrics.
Failure to identify the critical drivers and to correlate their impact on performance means companies struggle to understand why a performance metric has moved.
Create the ‘single thread’ that links performance drivers to performance outputs
Using driver analytics to mathematically link outcome metrics with the market, competitor, operational and financial forces that drive value is fundamental to good decision-making.
This process creates the “single thread” that enables you to trace the impact of a changed driver across every element of your planning and management cycle, from forecast, capital allocation and operational planning to performance reporting.
This kind of insight moves you from a position where decision-making is difficult, time consuming and inconsistent to one where analysis is standard, repeatable and integrated across your business.
By streamlining decision support you can improve your company’s agility and ability to thrive in an environment of constant change.
How we can help
While the principle behind driver analytics is simple, the reality is quite robust, requiring a high level of data integration across many different parts of your business. We understand the results you’re driving for and we work with you to get there:
- We have a library of drivers for every consumer products subsector and a proven track record of linking drivers with clients’ planning, management reporting and decision-making processes and tools.
- By drawing on our insight from previous successful projects, we can help you break down the barriers to faster and more effective decision-making for maximum, sustained business impact.