Pop quiz: You have an important decision to make – whether to increase the price of one of your best selling products on the market. You can ask your Executive team just ONE question:
A. Finance: What impact will this price change have on our revenues for the year?
B. HR: Is our sales team experienced enough to sell the value of the product at a higher price?
C. Operations: Do we have excess stock that is causing us significant holding costs?
D. Sales: Are there current contracts on the table that would be adversely impacted by the increase?
E. Marketing: What sentiment do our customers have about current prices?
F. Customer: Will a price increase cause some of our highly profitable customers to churn?
G. Product Management: How will the price change position us against our competitors?
Naturally, the answer is H. All of the Above! And yet, many organizations today continue to base their analytical strategy around a single business application and a biased view of overall performance.
Imagine sitting behind the wheel of a car, blind-folded, and being asked to “just drive“. Which way do you turn? Do you drive forwards or put the vehicle in reverse? Whether you’re driving a racing car or tractor, the risk of driving straight into the path of oncoming traffic or down a ditch is equally daunting.
And yet that is how many companies still expect their decision makers to operate. Whether steering a vehicle or an organisation, the importance of having clear insight into everything around you is imperative to making the right decision.