Business Intelligence Network - The Vision for BI and Beyond

Analytic Culture – Does It Matter?

Published: June 3, 2008

We can't create business intelligence culture. But we can, and we should, shape the culture that exists.

Those who are familiar with my previous articles and the classes that I teach are aware of my new definition of business intelligence (BI). I contend that the widely known definitions of the past – Dresner, Loshin, Moss, etc. – miss the point, and I set forth a new definition that shifts the focus of business intelligence from data and technology to business capabilities:

Business intelligence is the ability of an organization or business to reason, plan, predict, solve problems, think abstractly, comprehend, innovate, and learn in ways that increase organizational knowledge, inform decision processes, enable effective actions, and help to establish and achieve business goals.

The Human Side of Business Intelligence

This new definition implies a very people-dependent view of business intelligence. The capacities to reason, plan, solve problems, abstract, understand, innovate and learn are human capacities first and foremost. Collectively, they describe intellect. These capacities may be technology assisted, but fundamentally they are people things. Business intelligence depends on human intelligence.

But human intelligence isn’t simple and straightforward. Current thinking in the psychology community, in fact, holds that there are multiple kinds of human intelligence. In 1993, psychologist Howard Gardner published what is now a widely accepted theory of multiple intelligences – specifically addressing human intelligence and what it means for individual learning (Frames of Mind:The Theory of Multiple Intelligences, Gardner, Perseus Publishing, 1993, ISBN: 13-9780465025107).

Gardner identified seven core intelligences – linguistic, logical-mathematical, spatial, bodily kinesthetic, musical, interpersonal and intrapersonal. He later added naturalistic intelligence and continues to investigate whether there is an existential intelligence. Gardner theorized (and his subsequent research supports) that each of us has multiple intelligences but that they are distributed in different proportions from one individual to the next. The compatibility of individual intelligence with learning environment and culture, says Gardner, determines the capacity for individual learning. And it is that capacity for individual learning which, in turn, drives the capacity for organizational learning – the ultimate feedback system of business intelligence.

So, I repeat: business intelligence depends on human intelligence. And this is where it becomes very interesting. We are human; and as humans, we bring to the BI organization much more than intelligence. Figure 1 illustrates the range and scope of influences that people bring to BI culture. In addition to intellect and intelligence, we bring knowledge, experience, capabilities, talents, beliefs, expectations, communications and behaviors. This is the stuff from which BI cultures are formed.

Figure 1

We bring knowledge and experience, which find their way into our thought processes as perceptions, instincts, intuition, beliefs and biases. Sometimes we confuse perceptions with facts. And we sometimes confuse beliefs with universal truths.

We bring capabilities – those special talents that emerge when strengths come together with interests. Let’s look first at strengths. The Gallup view, as described in their Strengths Finder model, considers human qualities such as adaptability, communication, connectedness, responsibility, inclusiveness and self-assurance. Strengths Finder, in fact, itemizes thirty-four categories of strengths (Strengths Finder 2.0, Rath, Gallup Press, 2007, ISBN: 13-9781595620156),

Other models of strengths include terms such as resilience, tenacity, optimism, creativity, curiosity, authenticity, humility, compassion, empathy, humor, ethics, integrity, vitality, courage, fairness, leadership and love of learning.

But strengths alone don’t constitute capabilities or talents. Interests are the other ingredient. When analytical strength and curiosity combine with a drive to gain business insights, then you have a talented business analyst. This is the nature of capabilities and talents.

And we’re not finished yet. How (and how well) we apply intellect, intelligence, knowledge, experience, capabilities and talents is influenced by behaviors … how we THINK, how we ACT and how we WORK. Learning, use of language, communication, drive, decisiveness, attitude, socialization, assertiveness, and much more comes into play here. Preferences related to working with people, business, technology, numbers, words, etc., are behavioral influences, as are propensity for leadership, organizational management, project management, development, operations and so on.

People and Culture

So, we are people – individuals – unique, diverse, complex, interesting, and often challenging. And business intelligence depends on us!

We are challenging mostly because we interact. We work with other people; we work in groups. And those groups interact with other groups. And, therein, we find the stuff of culture.

And just what is culture? All too often it is a misunderstood word – thought of as something intangible – and sometimes misused to dismiss issues or problems (e.g., “Oh, that’s a cultural thing, there’s nothing we can do about it.”).

But I believe (something learned from my friend Maureen Clarry) that culture is tangible and that it is actionable. Maureen piqued my interest in the subject several years ago by introducing me to Daniel Denison’s definition of culture: “The underlying beliefs, values and assumptions held by members of an organization and the practices and behaviors that exemplify and reinforce them.”

The bottom line is: culture is about what we THINK, what we SAY and what we DO – beliefs and expectations, communications and behaviors. It is tangible because we can identify what we think, say, and do. And it is actionable because we can change what we think, say and do.

Yes, culture is tangible and it is actionable. But business culture it is not easy. It is complex and difficult because it is multifaceted. Business culture encompasses what we think, say and do about eight critical areas of organizational practices:

RELATIONSHIPS – The form and manner in which people and organizations interact and conduct their activities of mutual interest. Relationships span the range from friendly to hostile and take forms such as contract, collaboration and partnership. Organizational working relationships are influenced by communication, competency and governance.

EFFECTIVENESS – The capacity to produce meaningful and valuable results, which is also described as organizational performance. Organizational effectiveness is influenced by relationships, processes and skills.

ALIGNMENT – The degree to which parts of a system or organization are compatible, coordinated and cohesive. Organizational alignment can be evaluated by adjusting organizations relative to each other, and by adjusting organizations relative to a defined standard. Alignment is influenced by relationships and organizational effectiveness.

ACCOUNTABILITY – Responsibility to someone for activities and their results. Organizational accountability is directly related to effectiveness.

RESPONSIBILITY – The social forces that bind you to your obligations and the courses of action that are demanded by those forces. Remember that business is a social science.

COMMITMENT – The degree of dedication to a purpose and a course of action. Commitment is fundamental to the act of sharing in the goals and activities of a group or organization.

CHANGE – Movement from one state to another. Change is inevitable, continuous and often met with resistance. While resistance may seem challenging, it is normal and to be expected – and it is certainly more desirable than apathy. Positive change is achieved through participation and engagement of those who are affected.

VALUES – The characteristics that are most influential in shaping organizational behaviors. Organizational values involve qualities such as politics, stewardship, leadership, credibility and trust.

So this is complex stuff. Just look at the list of variables. All thirty of the words shown at the center of the box in Figure 2 appear in the short descriptions above. These are words with very big and very significant implications, and they are all part of business and BI cultures.

 

Figure 2

Business Intelligence Culture

Understanding business culture is not as simple as wrapping your mind around a single culture. Business consists of multiple overlapping and interacting groups, teams, and layers of organizational culture – mini-cultures and sub-cultures within the whole. Two big examples are business vs. IT and management vs. labor. Beyond these examples, there are many other mini-cultures inside each and every business. Finance, R&D, marketing, sales, customer service, operations, HR and more each have their own unique cultures. And every one of them has a role in business intelligence culture.

A Google search returns more than 742,000 results for “business intelligence culture.” While not a scientific measure, this certainly is a strong indicator that BI culture is important and of broad interest. Why the interest? I believe it is because attention to BI culture does make a difference in the success of a BI program. It influences adoption rate, reach into the business, trust in data and information, continuing investment in business intelligence, effective use of analytics and more.

Two of the more interesting results from that Google search, when taken together, tell a compelling story:

Howard Dresner, in an interview at Computer Business Review, says: To be effective with BI, organizations should have a culture that values fact-based analysis and the open sharing of information – i.e., transparency. This goes against human nature as most believe … that "knowledge is power." Until we can overcome this natural tendency, an ‘Information Democracy’ cannot flourish.”

Maureen Clarry, in an article published for The Data Warehousing Institute, indicates that “Denison’s research on culture indicates that the highest performing business (or BI) organizations…are clear on why they exist and where they are going (mission). Their people embrace the defined direction, are aligned with the goals, and leverage their skills (involvement). They understand what their customers want, and are able to learn what is needed to respond to changing demands (adaptability). And they have systems, structures and processes in place so that they can be both efficient and effective in
their pursuit of results (consistency).”

The compelling story in all of this is that for business intelligence to flourish, we must consciously establish core beliefs that promote fact-based analysis, information sharing and transparency. And to instill those core beliefs as part of BI culture, we must pay attention to mission, involvement, adaptability, consistency, goals, skills, change and results.

Yet this story – however compelling – is not right for every organization or for all BI programs. There is no “one right culture.” The problem is that culture, while critical, is not exactly a science. It is something more of an art form.

There are so many ways to describe what is thought of as good business intelligence culture. Dresner speaks of fact-based and open sharing. Clarry’s article references the four cultural traits. The body of articles around BI culture contains all of these phrases:

• Analytic culture
  
  
• Culture of innovation
  
  
• Culture of discovery
  
  
• Consensus-based culture
  
  
• Evidence-based culture
  
  
• Culture of measurement
  
  
• Culture of accountability
  
  
• Competitive culture
  
  
• Learning culture
  
  
• Decision-making culture
  
  
• Performance-based culture
  
  
• Customer-centric culture
  
  
• Continuous improvement culture

So the task of creating business intelligence culture looms as something nearly insurmountable. There are so many noble sounding ways to describe “good” BI culture that it is impossible to make all of them become real. And it is confusing to try to choose among them. So, what to do?

Finding the Right Culture

All is not lost. It is not hopeless or overwhelming. The reality is that you don’t need to create BI culture. In fact, you don’t get to create BI culture. You already have it!

You don’t need to create culture, but you do need to understand and shape the culture that exists.

• Is it defined and planned? Or de facto?
  
  
• Do you talk about it? Or does it just sort of lurk behind the scenes?
  
  
• Do you have words to describe the culture that you have? Or the culture to which you aspire?
  
  
• Do you know if it is a healthy culture?

And what makes a healthy culture?

Healthy cultures – those of friendly relationships, measured effectiveness, proactive alignment, clear accountability, designated responsibility, declared commitment, change agency and defined values – are created when BI programs focus on people before technology. These cultures are characterized by behaviors of enthusiasm, belief, confidence, support and competence.

Unhealthy cultures – those of hostile relationships, uncertain effectiveness, misalignment, uncertain accountability, perceived victimization of change and assumptions about responsibility, commitment and values – are created when technology is the primary focus of a BI program. These cultures are characterized by dysfunction, resistance, doubt and uncertainty.

Cultural Stewardship

So, we can’t create business intelligence culture. But we can – and we should – shape the BI culture that exists. Culture is the collective beliefs, behaviors and assumptions of a group of people. We are people, and business intelligence depends upon us. Thus we are all – each and every one of us – stewards of business intelligence culture.

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