For Brand Leaders to keep moving up, you need to be good at all parts of marketing–skills, behaviors and experiences. As you manage your career, try to close gaps in each. The key skills you include brand analytics, strategic thinking, brand planning, decision-making and execution. One of the biggest skill gaps I see is the ability to do deep dive analytics and turn it into an analytical story that can set up decisions. From what I see, most people either don’t know how to dig in or when they dig in, they struggle to tell the story from the mounds of data they have gathered.
To help challenge your thinking, here are “Six principles of good analytical thinking for Brand Leaders”
One tool I use is the “5 Questions tool” where you start with your hypothesis and then ask “so what does that mean” 5 times, each time helping analysis move from unsubstantiated opinion to action-able insight.
The benefit of this type of tool is it helps avoiding getting caught off guard when your senior management starts asking questions. Once you do that, I like to organize my thinking, like a newspaper (if those still exist) with a Headline, Opinion and 2-3 data points.
Principle #2: Absolute numbers by themselves are useless. Always find comparisons.
Only when given a relative nature to something important do you find the data break that tells a story. Is 50 degrees Fahrenheit warm or cold? If it’s Ottawa Canada and it’s December 24th it HOT and it is front page news. If it’s Los Angeles on June 5th, it is COLD and front page news.
Back in the early 1900s, there was a famous baseball player whose name was Frank “Home Run” Baker. Yet, oddly enough, the most Home Runs he ever hit in a year was 12. You might think his name is sarcastic or wonder how the heck can he get the nickname “Home Run”. Because in a relative dead ball era of baseball, he won the home run crown four consecutive seasons starting in 1911 with 11, 10, 12 and 9 home runs. Yes Babe Ruth would hit 54 and 60 home runs less than 10 years later but the ball had changed. The absolute number of home runs does not matter–because relatively speaking, Frank Baker was the best home run hitter of his generation and deserves to be called “Home Run” Baker.
Only when given a relative nature to something important do you find the data break that tells a story. You have to ground the data with a comparison, whether that’s versus prior periods, competitors, norms or the category. Every time you talk about a number, you have to talk about in relative terms—comparing it to something that is grounded: vs last year, vs last month, vs another brand, vs norm or vs England’s share. Is it up down, or flat? Never give a number without a relative nature—or your listener will not have a clue.
Principle #3: The analytical story comes to life when you see a break in the data.
Comparative indexes and cross tabulations can really bring out the data breaks and gaps that can really tell a story. Use the “so what” technique to dig around and twist the data in unique ways until you find the point in which the data actually breaks and clear meaningful differences start to show. This is where the trend is exposed and you can draw a conclusion.
Example of finding data breaks
- Distribution overall held at 82% throughout the year. At the macro level, it looks like there is no issue at distribution at all)
Distribution on 16 count fell only a little bit over the year going from 74% to 71%. Even at one layer down—the count size—there’s still very little break in the data
- Distribution on 16 count at Convenience stores went from 84% to 38% in the last 2 months. As we are starting to twist the data, it shows a dramatic and quick drop at the Convenience channel. As you start to dig around you might find out that the biggest Convenience Customer, 7-11, delisted the brand recently.
Principle #4: Like an Old School Reporter, two source of data help frame the story.
Avoid taking one piece of data and making it the basis of your entire brand strategy. Make sure it’s a real trend. Dig around until you can find a convergence of data that leads to an answer. Look to find 2-3 facts that start to tell a story, and allows you to draw a conclusion. The good pure logic in a philosophical argument they teach you is “premise, premise conclusion” so if you see one trend line, look for a second before drawing a conclusion.
Principle #5: Deep analysis requires slower thinking time so you don’t misjudge situation.
The best Brand Leaders know when to be a strategic thinker and when to be an action thinker. Strategic thinkers see “what if” questions before seeing solutions, mapping out a range of decision trees that intersect and connect by imagining how events will play out. They take time to reflect and plan before acting, helping you move in a focused efficient fashion. They think slowly, logically, always needing options, but if go too slow, you will miss the opportunity window.
A good tool to get you thinking in terms of questions: separate your analysis into 5 buckets:
- What do we know? This should be fact based and you know it for sure.
- What do we assume? Your educated/knowledge based conclusion that helps us bridge between fact, and speculation.
- What we think? Based on facts, and assumptions, you should be able to say what we think will happen.
- What do we need to find out? There could be unknowns still.
- What are we going to do? It’s the action that comes out of this thinking.
- Where are we?
- Why are we here?
- Where could we be?
- How can we get there?
- What do we need to do to get there?
Before you start your planning process, take a few hours to sit down at your desk and outline a few points for each point. You will start to see how the overall brand plan flows. These 5 questions start to map out your overall analysis, the key issues, the vision, strategy and tactics.
Principle #6: Use tools that can help organize and force deep dive thinking in key areas.
A Force Field analysis is best served for those brands in a sustaining position where marketing plays the role of driving innovation and creativity within a box. Always keep in mind that Drivers and Inhibitors are happening now. You can see the impact in the current year. Anything in the future gets moved down to Opportunities and Threats which are not happening but could happen. Invariably, people mix this up and things that could happen move up when they really shouldn’t.
The best thing about the force field is you can easily take it into an action plan, because you want to keep the drivers going and overcome the inhibitors Then take advantage of the opportunities and minimize or eliminate any serious threats. It’s a great simple management tool.
Good analytics get you to the point of “So what do you think”. From there, you will have to be a good decision-maker.
Here is our workshop on leading a deep dive business review including good analytical principles, assessing health and wealth of the brand, turning facts into insight, helping to set up strategic choices and turning the analytics into projections and analytical stories.
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