{"id":28920,"date":"2014-05-23T10:30:15","date_gmt":"2014-05-23T14:30:15","guid":{"rendered":"https:\/\/balancedscorecard.org\/staging\/?p=28920"},"modified":"2022-08-23T10:59:26","modified_gmt":"2022-08-23T14:59:26","slug":"4-reasons-business-intelligence-systems-are-like-an-unused-gym-membership","status":"publish","type":"post","link":"https:\/\/balancedscorecard.org\/staging\/blog\/4-reasons-business-intelligence-systems-are-like-an-unused-gym-membership\/","title":{"rendered":"4 Reasons Business Intelligence Systems are Like an (Unused) Gym Membership"},"content":{"rendered":"

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My business intelligence (BI) and analytics software salesman friend said something interesting to me the other day over lunch. He said, \u201cI don’t sell software, I sell gym memberships. When someone joins a gym they are not really buying the membership. They are buying the dream<\/em><\/strong> of improved health and a better physique. Their intention is to work out every day and fulfill that dream, despite the fact that few people ever actually follow up. Selling BI software is the same way. I’m not selling the software; I\u2019m selling the dream of improved insight and competitive advantage.\u201d\"\"<\/p>\n

The unspoken implication was that few people ever get significant benefit from their software system, a conclusion I have also observed over my years in strategic performance management.<\/p>\n

There are many common reasons that your strategic performance management software system might be getting less use than the gym membership you bought last January.\u00a0 Below are the top 4 that I\u2019ve seen as well as some tips for avoiding them.<\/p>\n

Reason 1: You bought into the hype but not the skills<\/strong>
\nI overheard a CEO recently saying that he needed to buy into the big data<\/em><\/strong> craze.\u00a0 It was clear that this person had no idea what big data or predictive analytics<\/em><\/strong> meant, but he definitely needed to buy some.\u00a0 Many people seem to think if they just buy some software, within weeks a \u201cnumber cruncher\u201d will magically come down from a mountain with answers to all of their problems. That is like thinking that if I buy a shovel, a garden will magically appear in my back yard. Performance management and statistical analysis skills are critical to creating value in this field.<\/p>\n

Reason 2: You keep the results a secret<\/strong>
\nThe first question some people ask when considering a performance system is, \u201chow do I keep everyone out of my data?\u201d\u00a0 Security around private customer, employee, or some financial information is an absolute must, but a surprising amount of strategic organizational performance information can<\/em><\/strong> be shared with leaders and managers.\u00a0 Leaders need information to make decisions and limiting access can communicate that strategy management is something to be left to only a select few.\u00a0 Analyzing data is only the first step.\u00a0 The dialog around why the results occurred and what should happen next are just as critical.<\/p>\n

Reason 3: You only use out-of-the-box performance report design<\/strong>
\nThe standard templates provided by the software companies are almost always designed to make the software sell well, as opposed to informing YOUR strategic decision making. Good performance reports communicate three things clearly: 1) How is OUR organization currently performing, 2) Why are WE getting the results that we are getting?\u00a0 And 3) What are WE doing to improve our results?<\/p>\n

Reason 4: You count and report on everything that can be counted.<\/strong>
\nJust because the vendor promises that this tool can handle the volume doesn\u2019t mean that this is a good idea. Strategic performance management is about focusing on the most critical things first. I would recommend selecting a handful of critical performance gaps and focus your data collection, analysis, and improvement efforts on those.\u00a0 Teach everyone in your organization how to do this effectively before you expand to other areas.<\/p>\n

There are many more common mistakes, but these four are top of mind for me.\u00a0 Please share other mistakes you\u2019ve seen in the comments section below.<\/p>\n

For more about how to improve your performance analysis, see the Performance Analysis chapter of The Institute Way: Simplify Strategic Planning and Management with the Balanced Scorecard<\/a><\/em>.<\/p>\n

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Their […]<\/p>\n","protected":false},"author":4,"featured_media":28921,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[23],"class_list":["post-28920","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-strategy"],"yoast_head":"\n4 Reasons Business Intelligence Systems are Like an (Unused) Gym Membership - Balanced Scorecard Institute<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/balancedscorecard.org\/staging\/blog\/4-reasons-business-intelligence-systems-are-like-an-unused-gym-membership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 Reasons Business Intelligence Systems are Like an (Unused) Gym Membership\" \/>\n<meta property=\"og:description\" content=\"My business intelligence (BI) and analytics software salesman friend said something interesting to me the other day over lunch. 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