Drivers can be a game changer in terms of improved decision-making across your organization.
Summary: Without concrete information, leaders are sometimes forced to rely on their gut to make decisions. Analytics add rigor, but are time-consuming and costly. A driver-based approach offers the best of both worlds: accelerated, strategic decision-making that is efficient and cost effective.
Our new series, 5: insights for executives, explores five big questions about driver-based decision-making:
- What is behind the push?
- Why now?
- What is the value?
- What functions have the most to gain?
- What is the bottom line?
Overview of driver-based decision-making
Drivers can be a game changer in terms of improved decision-making across your organization.
Example: Customer services company uses drivers to boost customers and revenue
When a large consumer services company was wrestling with its slowing rate of customer growth, the CEO pushed for an understanding of the drivers behind new customers.
The resulting driver-based analysis yielded unprecedented insight into the factors that promote customer growth:
- Contacts with potential customers
- Conversion rate of potential to actual customer
Contacts were being closely tracked and managed; the conversion rate was not.
The driver analysis led to changes in the governance of conversion rate efforts that dramatically increased the number of new customers and boosted revenue.
Example: Technology company uses drivers to compare investment scenarios
When a global technology company had more demands for investment than it could fund, it defined the drivers of its business and then compared investment scenarios across that consistent set of drivers and outcomes.
For the first time, the company had a unified point of view about sector growth, geographic opportunity and competitor behavior, and could develop a strategic plan that used drivers to compare investment scenarios and articulate a strategy.
