Why more data does not help
With no structure for analysis, every new report adds interpretations. People argue about which cut of the data is more correct instead of arguing about the decision. The shortage is not data, it is a route from signal to cause to action.
Analysis starts with a question
A question does three things: it explains why you are looking at these metrics, it defines what you want to understand, and it limits the conclusions you are allowed to draw. Without a question a dashboard becomes a display case.
A list of metrics and a system of metrics are different things
- A list: every metric stands alone, all have equal status, the relationships live in individual heads.
- A system: metrics have distinct roles, dependencies exist, analysis follows a route anyone can retrace.
Local improvement and system result
Improving one metric almost always happens at the expense of others. Locally better means you lifted one number over a short horizon in one part of the process. Better as a system means the behaviour of the whole changed with no unacceptable side effects. Without a map you cannot see the price of an improvement.
What a map gives you
- A place to start when something drops.
- Fewer «I have a feeling» hypotheses.
- Protection from local optimisation: the cost of an improvement is visible.
- A shared language for the team.
- A move from numbers to actions: you can see which metrics are actually controllable.
How to draw yours in an hour
- Write down every number you already track.
- For each, answer: what will I do if this changes? Set aside the ones with no answer.
- From what remains, draw arrows: what affects what.
- Find metrics with no arrows entering them. Those are either input drivers or clutter.
- Trace every chain to money. A metric that does not reach revenue or cost needs a role, or removal.