Strategic Analysis Best Practice 8 - Validate the Extremes
Strategic Analysis
Performance studies of today’s intricate, technology-driven organizations and the fast paced business environments in which they operate yield unprecedented amounts of data. Analysts often employ complex algorithms and visual models to synthesize and process this data into meaningful information organization leaders use to formulate their company’s direction.
Mathematical modeling, however, can sometimes provide analysts with misleading information. Because they seek to characterize performance while accounting for a broad range of unique circumstances, models and other forms of statistical analysis often assume a normal results distribution and subsequently rely on average values. This reliance on averages, in turn, may mute an impactful occurrence at the extreme of the performance range. Thus, it becomes important for analysts to validate performance extremes.
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Howard T. Dickens Jr. is Vice President of P Enterprises and co-Host of the StrategyDriven Podcast. A dynamic public speaker, facilitator, and training consultant, he has shared his insights with hundreds of executives and managers at all organizational levels; helping them develop motivational leadership behaviors, cultural competence, and the ability to manage workplace conflict. To read Howard’s complete biography, 
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Solutions addressing today’s multifaceted business challenges and opportunities can be extremely difficult to recognize; the ever increasing pace of change within the business environment further complicating this problem. In order to successfully deal with this challenge, decision-makers need the support of people and tools to help them distill large quantities of data, recognize important business trends, discount temporary fads, and translate their findings into meaningful organizational activities. Because no one analysis perspective will adequately account for all of the important nuances associated with a complex problem, multidiscipline teams and diverse tools should be employed to establish a complete picture organizational performance and environmental conditions. Use of a diverse set of models during the strategic analysis process helps create this needed picture.*
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