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MIRKO PETERS: What if I told you
that most data science teams
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don't have a Strategy at all?
They have plans, roadmaps, and
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backlogs. But these aren't
strategies. They're just lists
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of activities without a guiding
principle.
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In this video, I'm going to
share the exact framework I use
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to build successful data science
strategies for teams ranging
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from three people at a startup
to 50 plus at a Fortune 500
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company. You'll learn how to
create a Strategy that focuses
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your team's efforts and drives
measurable business impact.
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The one-sentence definition that
changes everything. What if most
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data science leaders are getting
Strategy completely wrong?
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I've consulted with dozens of
teams across industries, and
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almost every time I ask to see
their data science Strategy,
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they proudly present me with a
list. Sometimes it's a list of
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projects they plan to complete.
Other times, it's technologies
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they intend to implement.
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Occasionally, it's hiring plans
or organizational structures.
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But here's the problem. None of
these things constitute a
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Strategy. This misconception
isn't unique to data science.
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Organizations everywhere confuse
plans with Strategy.
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The difference might seem
semantic, but it creates
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profound consequences for data
teams trying to deliver value.
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When we treat Strategy as merely
a roadmap of activities, we fail
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to address the fundamental
question that should guide our
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work.
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How will we behave to create
competitive advantage? Consider
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a financial services company I
worked with last year.
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Their data science Strategy was
a detailed 18-month plan listing
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predictive models they would
build, a data lake
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implementation timeline, and
hiring targets for specific
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technical roles.
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Six months in, market conditions
shifted dramatically and
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customer needs changed. Their
beautifully crafted plan became
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irrelevant almost overnight.
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Without guiding principles for
behavior, the team floundered,
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chasing new priorities while
abandoning half-completed
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initiatives. In another case, a
healthcare analytics team spent
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months creating what they called
a comprehensive data Strategy.
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The document outlined specific
tools, methodologies, and
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projects, all tactical
components without a unifying
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strategic direction. When
leadership changed, the new
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executive questioned these
choices. Without clear
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behavioral commitments tied to
competitive advantage. The team
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couldn't defend their approach.
The result?
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Resources were redirected, team
morale collapsed, and months of
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work went to waste. These
examples reflect what happens
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when we mistake activity for
Strategy. The plans themselves
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weren't necessarily bad. They
were just insufficient. They
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answered what without addressing
how or why.
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They focused on tasks rather
than behavioral patterns that
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would differentiate the team and
create value regardless of
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changing circumstances. This
brings us to the definition that
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transformed my own understanding
of Strategy. Gary Pisano, in his
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work on R&D Strategy, offers
this powerful insight. A
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Strategy is nothing more than a
commitment to a pattern of
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behavior intended to help win a
competition.
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This elegant formulation cuts
through the confusion and
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provides clarity about what
Strategy actually is. Let's
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break this down for data science
teams specifically.
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First, Strategy is a commitment
to a pattern of behavior. It's
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not about specific projects or
technologies. Those are tactical
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choices that should flow from
your Strategy. Instead, it's
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about how your team consistently
acts and makes decisions. Will
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you prioritize speed over
perfection? Will you focus on
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specialized expertise or
versatile capabilities? Will you
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develop proprietary methods or
leverage open source solutions?
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These behavioral patterns
consistently applied define your
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Strategy. Second, this behavior
is intended to help win a
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competition. Data science
doesn't exist in a vacuum.
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Your team competes for resources
within your organization, for
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talent in the marketplace, and
ultimately to create value that
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helps your company outperform
competitors. A true Strategy
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acknowledges this competitive
context and makes explicit
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choices about where and how to
compete.
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For data science leaders, this
definition is transformative
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because it shifts focus from
project deliverables to the
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decision-making frameworks that
guide all activities. When
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market conditions change or new
technologies emerge, a project
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list quickly becomes obsolete.
But behavioral commitments can
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remain consistent even as
tactical execution evolves.
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Take a retail analytics team I
advised that completely
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reimagined their approach using
this definition. Instead of
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listing dashboard projects and
machine learning models, They
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committed to behavioral
patterns. They would prioritize
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customer-facing improvements
over internal efficiencies,
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favor rapid experimentation over
lengthy perfectionism, and
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emphasize business-intelligible
algorithms over black-box
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solutions.
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These commitments didn't specify
what they would build, but they
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created clear guidelines for how
they would operate in any
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circumstance. When retail
shopping patterns drastically
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changed during the pandemic,
teams operating from project
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plans scrambled to adjust.
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But this team's behavioral
Strategy provided immediate
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guidance on how to respond.
Their commitment to
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customer-facing improvements
meant quickly shifting to new
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purchasing patterns. Their rapid
experimentation approach allowed
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them to test and learn in
uncertain conditions.
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Their focus on intelligible
algorithms meant business
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partners could understand and
trust their evolving
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recommendations. This strategic
approach changes everything
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about how data science teams
operate. Instead of asking, what
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projects should we work on next
quarter? It prompts more
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fundamental questions.
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How should we behave to create
maximum competitive advantage?
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What patterns of decision-making
will consistently lead to
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success regardless of specific
projects? The transformation
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extends to how teams evaluate
success.
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Rather than measuring progress
against a project timeline,
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which rewards activity but not
necessarily impact, they assess
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whether their behavioral
patterns are creating the
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intended competitive advantage.
Are they making decisions faster
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than competitors? Are they
connecting with customers more
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effectively? Are they generating
insights that others miss? For
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team members, this definition
provides clarity and autonomy.
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When everyone understands the
behavioral patterns that define
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the Strategy, they can make
consistent decisions without
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constant supervision. They know
how to prioritize when competing
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demands arise and can adapt to
changing circumstances while
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remaining strategically aligned.
This shift in thinking from
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projects to behaviors, from
activities to competitive
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advantage isn't merely
theoretical.
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It's the difference between data
science teams that consistently
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deliver value and those that
struggle to justify their
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existence when conditions
change. The power of this
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definition becomes especially
evident during organizational
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transitions. When leadership
changes or budgets tighten,
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teams without a true Strategy
find their work suddenly
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questioned or redirected.
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Teams with clear behavioral
commitments tied to competitive
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advantage can articulate their
value regardless of who's in
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charge. This doesn't mean you
should abandon planning
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altogether. Tactical plans
remain important for execution,
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but they should derive from...
Your strategic behavioral
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commitments rather than
constitute the Strategy itself.
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The projects you pursue should
be expressions of your strategic
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behaviors, not the Strategy
itself. So what is the one
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sentence definition of Strategy
that changes everything? It's
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that a Strategy is a commitment
to a pattern of behavior
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intended to win a competition,
not just a plan or roadmap.
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This definition liberates data
science teams from the tyranny
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of project lists that quickly
become outdated and focuses
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attention on the consistent
behaviors that create lasting
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competitive advantage. Plans
versus Strategy, the critical
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difference. If Strategy is about
behavioral commitments rather
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than project lists, why do 85%
of data science teams still
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confuse the two?
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The distinction isn't just
academic, it's the difference
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between teams that create
lasting value and those that
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constantly restart from zero.
When data science leaders
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proudly slide documents across
the table labeled our data
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Strategy, I often find myself
looking at elaborate
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spreadsheets listing
technologies to implement,
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dashboards to build, or models
to deploy over the next 12 to 18
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months.
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These documents typically follow
a predictable pattern. They
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begin with current state
assessment, move to gap
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analysis, then outline a series
of projects with timelines,
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resource requirements, and
sometimes even ROI calculations.
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At first glance, these documents
appear comprehensive. They
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contain Gantt charts. Showing
implementation phases for data
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lakes, machine learning
platforms, or analytics tools,
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they outline hiring plans for
specific roles. Data engineers,
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ML engineers, business analysts,
they specify which algorithms
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will be deployed and which
business units will receive
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analytics capabilities first.
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They're often visually
impressive, with professional
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graphics and executive summaries
designed for leadership
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consumption. The problem isn't
that these documents lack detail
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or thought. The problem is that
they answer an entirely
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different question than what
Strategy should address. They
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explain what the team plans to
do, but not how they'll behave
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differently to outperform
competitors or create
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sustainable advantage.
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Let me illustrate this
distinction with a concrete
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example.
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Imagine two retail companies
facing the same challenge,
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improving customer retention
through data science. The first
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company develops what they call
a Strategy that lists projects.
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Implement a customer data
platform in Q1.
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Build churn prediction models in
Q2, develop recommendation
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engines in Q3, and deploy
personalized marketing campaigns
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in Q4.
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The second company takes a
different approach. Their
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Strategy states, We will win by
rapidly testing small targeted
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interventions based on simple
customer behavior patterns
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rather than building
comprehensive models.
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We commit to running at least
five small experiments per
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month, making decisions within
48 hours of getting results, and
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scaling successful approaches
immediately, even with
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incomplete information. When
market conditions change, say a
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major competitor launches an
innovative loyalty program, the
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responses reveal the critical
difference. The first company's
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detailed plan becomes obsolete.
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They must restart their planning
cycle, re-evaluate priorities,
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and develop a new project
sequence. Meanwhile, the second
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company simply applies their
established behavioral pattern
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to the new situation, quickly
testing counter-moves and
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scaling what works. This
distinction becomes even more
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critical as data science teams
grow.
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A startup with three data
scientists might survive with
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just a plan because Informal
communication and rapid pivoting
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happen naturally. But as teams
grow to 10, 30 or 100 people
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across multiple business units,
the lack of consistent
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behavioral commitments leads to
fragmentation.
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Without clear strategic
behaviors, different team
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members make conflicting
decisions, pursue contradictory
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approaches and optimize for
incompatible outcomes. In
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enterprises, I've witnessed
teams with impressive technical
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talent who produced minimal
business impact because they
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lacked strategic behavioral
commitments.
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Their Strategy documents
outlined ambitious roadmaps for
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advanced AI capabilities, but
said nothing about how decisions
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would be made, which problems
would take priority, or what
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trade-offs would guide their
work.
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The result was a collection of
technically impressive but
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disconnected initiatives that
failed to build on each other or
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create lasting competitive
advantage. What we're witnessing
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is the fundamental nature of
plans versus strategies. Plans
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specify tasks, timelines, and
deliverables. They answer what
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and when questions.
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They are necessary operational
documents, but they don't
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provide guidance for how to
respond to changing
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circumstances or how to make
difficult trade-offs. They
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become outdated the moment
market conditions shift.
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Strategies, by contrast, specify
behavioral patterns and decision
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criteria. They answer how
questions.
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How will we make decisions? How
will we allocate resources? How
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will we approach problems
differently than our
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competitors? These behavioral
commitments provide consistent
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guidance, even as specific
projects evolve. Another
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critical difference emerges in
how success is measured.
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Plans are evaluated based on
completion metrics. Did we
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finish the projects on time and
within budget? Strategies are
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evaluated based on competitive
outcomes. Did our behavioral
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patterns create advantage
compared to alternative
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approaches? This distinction
forces teams to connect their
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work directly to competitive
position rather than just
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checking boxes on a project
list.
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00:12:51,490 --> 00:12:54,291
The confusion between plans and
strategies creates particular
241
00:12:54,330 --> 00:12:56,852
problems for data science
because of the field's inherent
242
00:12:56,930 --> 00:13:00,531
uncertainty. In established
functions like finance or
243
00:13:00,532 --> 00:13:04,133
operations, detailed plans often
work because the environment is
244
00:13:04,172 --> 00:13:07,633
relatively stable and processes
are well understood.
245
00:13:08,727 --> 00:13:12,039
But data science involves
exploration, experimentation and
246
00:13:12,055 --> 00:13:15,930
discovery. Detailed project
plans for such work invariably
247
00:13:15,977 --> 00:13:18,818
become fiction shortly after
they are created. This reality
248
00:13:18,858 --> 00:13:22,081
doesn't mean data science teams
should abandon planning. Rather,
249
00:13:22,183 --> 00:13:25,124
it means their strategies must
establish behavioral patterns
250
00:13:25,526 --> 00:13:27,710
specifically designed to
navigate uncertainty
251
00:13:27,765 --> 00:13:28,249
effectively.
252
00:13:28,765 --> 00:13:31,647
These might include commitments
to specific experimentation
253
00:13:31,694 --> 00:13:35,030
cadences, explicit resource
allocation between exploration
254
00:13:35,077 --> 00:13:38,155
and exploitation, or decision
processes for rapidly
255
00:13:38,233 --> 00:13:41,702
terminating unproductive
avenues. One multinational
256
00:13:41,733 --> 00:13:44,530
consumer goods company I worked
with transformed their approach
257
00:13:44,546 --> 00:13:47,016
when they shifted from a
detailed AI implementation
258
00:13:47,056 --> 00:13:50,258
roadmap to a Strategy focused on
rapid learning cycles.
259
00:13:50,961 --> 00:13:54,359
Their new Strategy committed to
specific behaviors. All
260
00:13:54,406 --> 00:13:57,242
initiatives would start with
minimum viable data products
261
00:13:57,289 --> 00:14:01,328
delivered in under four weeks.
Business stakeholders would be
262
00:14:01,375 --> 00:14:04,609
embedded in technical teams
rather than just receiving
263
00:14:04,687 --> 00:14:05,156
updates.
264
00:14:06,047 --> 00:14:10,500
And technical complexity would
be deliberately limited until
265
00:14:10,781 --> 00:14:13,687
business value was validated.
These behavioral commitments
266
00:14:13,734 --> 00:14:17,259
remained constant. Even as
specific projects evolved
267
00:14:17,419 --> 00:14:20,925
dramatically based on market
feedback. The root of this
268
00:14:21,003 --> 00:14:25,425
confusion often lies in how
requests for Strategy are framed
269
00:14:25,488 --> 00:14:26,425
within organizations.
270
00:14:26,550 --> 00:14:29,831
When an executive asks a data
science leader to develop our
271
00:14:29,894 --> 00:14:33,456
data Strategy, both parties
frequently default to thinking
272
00:14:33,488 --> 00:14:36,331
about roadmaps and
implementation plans because
273
00:14:36,378 --> 00:14:38,660
these are concrete and familiar
formats.
274
00:14:39,503 --> 00:14:43,441
Breaking this pattern requires
explicitly reframing the request
275
00:14:43,972 --> 00:14:46,872
around behavioral commitments
and competitive approaches
276
00:14:47,453 --> 00:14:51,177
rather than project sequences.
As teams grow in size and
277
00:14:51,197 --> 00:14:54,122
complexity, the distinction
between plans and strategies
278
00:14:54,162 --> 00:14:55,263
becomes even more crucial.
279
00:14:55,841 --> 00:14:58,966
Small teams might succeed
through the intuitive behaviors
280
00:14:58,982 --> 00:15:01,490
of a few talented individuals,
but larger teams require
281
00:15:01,568 --> 00:15:04,474
explicit behavioral commitments
to maintain coherence. Without
282
00:15:04,537 --> 00:15:07,755
them, different team members
optimize for incompatible
283
00:15:07,849 --> 00:15:12,824
outcomes, technical decisions,
lack consistency, and the
284
00:15:12,865 --> 00:15:16,129
cumulative effect of the team's
work diminishes rather than
285
00:15:16,187 --> 00:15:16,750
compounds.
286
00:15:18,750 --> 00:15:22,031
The three requirements of
effective Strategy. Beyond mere
287
00:15:22,054 --> 00:15:26,656
behavioral patterns lies a more
fundamental challenge, crafting
288
00:15:26,657 --> 00:15:30,906
a Strategy that actually works
when implemented. What makes the
289
00:15:30,937 --> 00:15:33,312
difference between data science
strategies that drive
290
00:15:33,359 --> 00:15:35,812
organizational transformation
versus those that become
291
00:15:35,906 --> 00:15:39,966
irrelevant within months. Three
specific requirements separate
292
00:15:40,005 --> 00:15:41,446
success from failure.
293
00:15:41,868 --> 00:15:44,829
In all my years consulting with
data science teams, I've
294
00:15:44,891 --> 00:15:47,876
witnessed a recurring pattern. A
brilliant team develops what
295
00:15:47,891 --> 00:15:50,594
appears to be a compelling
Strategy. They've correctly
296
00:15:50,938 --> 00:15:54,180
identified that Strategy is
about behavioral commitments
297
00:15:54,321 --> 00:15:57,415
rather than project lists. Their
document beautifully articulates
298
00:15:57,462 --> 00:15:59,540
how they'll behave to create
competitive advantage.
299
00:16:00,071 --> 00:16:03,774
Everyone nods enthusiastically
at the kick-off meeting. Yet six
300
00:16:03,852 --> 00:16:07,768
months later, the Strategy has
been abandoned. Or Worse is
301
00:16:07,808 --> 00:16:10,310
being followed religiously
despite producing minimal
302
00:16:10,349 --> 00:16:15,154
results. Gary Pisano's research
on R&D Strategy goes beyond
303
00:16:15,279 --> 00:16:17,755
simply defining Strategy as
behavioral commitments.
304
00:16:18,240 --> 00:16:21,044
He identifies three critical
requirements that separate
305
00:16:21,122 --> 00:16:23,966
theoretical strategies from
those that actually transform
306
00:16:24,029 --> 00:16:28,513
organizations. Consistency,
coherence, and alignment. When
307
00:16:28,810 --> 00:16:32,232
data science strategies fail,
despite correct intentions, it's
308
00:16:32,294 --> 00:16:35,357
typically because they've missed
one or more of these fundamental
309
00:16:35,416 --> 00:16:38,658
requirements. Let's examine each
requirement and understand why
310
00:16:38,720 --> 00:16:41,283
they matter specifically for
data science teams.
311
00:16:41,806 --> 00:16:44,728
Consistency refers to making
decisions that contribute to the
312
00:16:44,767 --> 00:16:48,025
same competitive advantage over
time. This doesn't mean rigidly
313
00:16:48,087 --> 00:16:51,306
sticking to the same tactics
regardless of circumstances, but
314
00:16:51,431 --> 00:16:54,931
rather ensuring that the
underlying behavioral patterns
315
00:16:55,290 --> 00:16:58,994
reinforce the same strategic
goals even as implementation
316
00:16:59,056 --> 00:17:00,056
details evolve.
317
00:17:00,959 --> 00:17:04,219
Consider a financial technology
startup, I advised, whose
318
00:17:04,420 --> 00:17:07,398
Strategy emphasized rapid
experimentation to discover
319
00:17:07,461 --> 00:17:11,379
customer needs. Their behavioral
commitment was to conduct at
320
00:17:11,465 --> 00:17:13,324
least two customer experiments
weekly.
321
00:17:13,824 --> 00:17:16,363
Initially, this worked
brilliantly. But when they
322
00:17:16,402 --> 00:17:19,098
received a large investment, the
leadership suddenly shifted
323
00:17:19,160 --> 00:17:21,707
focus to building
enterprise-grade infrastructure
324
00:17:21,723 --> 00:17:24,551
that would take months to
implement with no customer
325
00:17:24,629 --> 00:17:25,051
feedback.
326
00:17:26,066 --> 00:17:28,379
While they claimed their
Strategy remained unchanged,
327
00:17:28,547 --> 00:17:31,190
their actual decisions no longer
reflected their stated
328
00:17:31,229 --> 00:17:34,533
behavioral commitments. Within
three months, they had built
329
00:17:34,693 --> 00:17:37,732
sophisticated systems that
customers didn't want, forcing
330
00:17:37,756 --> 00:17:40,279
them to start over with
substantial sunk costs. The
331
00:17:40,295 --> 00:17:40,561
lesson?
332
00:17:42,076 --> 00:17:44,498
Consistency doesn't mean
inflexibility, but it does
333
00:17:44,545 --> 00:17:48,451
require discipline to maintain
core behavioral commitments,
334
00:17:48,607 --> 00:17:50,561
even when tempting alternatives
arise.
335
00:17:51,686 --> 00:17:54,717
For data science teams,
consistency is particularly
336
00:17:54,779 --> 00:17:57,170
challenging because
opportunities constantly emerge
337
00:17:57,217 --> 00:18:00,956
to apply. New technologies or
methodologies that may distract
338
00:18:01,296 --> 00:18:04,735
from strategic focus. The second
requirement, coherence, means
339
00:18:04,775 --> 00:18:07,696
ensuring all parts of your
Strategy support rather than
340
00:18:07,775 --> 00:18:08,657
contradict each other.
341
00:18:09,618 --> 00:18:13,157
Many data science strategies
include behavioral commitments
342
00:18:13,181 --> 00:18:15,720
that sound reasonable
individually but create friction
343
00:18:15,751 --> 00:18:19,501
when combined. A pharmaceutical
research team I worked with
344
00:18:19,892 --> 00:18:23,657
committed both to maintaining
gold standard data quality and
345
00:18:23,860 --> 00:18:27,092
rapidly prototyping analytics
models. In practice, these
346
00:18:27,112 --> 00:18:31,097
commitments created constant
conflict as the rigorous data
347
00:18:31,156 --> 00:18:34,339
preparation processes made rapid
prototyping impossible.
348
00:18:35,019 --> 00:18:39,425
Team members split into camps
with data engineers prioritizing
349
00:18:39,464 --> 00:18:42,488
quality and data scientists
prioritizing speed. The
350
00:18:42,489 --> 00:18:45,566
resulting tension paralyzed
decision making. Creating
351
00:18:45,597 --> 00:18:49,175
coherence means critically
examining how your behavioral
352
00:18:49,238 --> 00:18:50,675
commitments interact with each
other.
353
00:18:50,910 --> 00:18:54,300
Do they create synergies or do
they pull your team in different
354
00:18:54,316 --> 00:18:58,062
directions? This requires
honestly assessing trade-offs
355
00:18:58,501 --> 00:19:02,107
rather than pretending
contradictions don't exist. The
356
00:19:02,126 --> 00:19:05,869
pharmaceutical team eventually
revised their Strategy to focus
357
00:19:06,033 --> 00:19:10,673
on fit-for-purpose data quality,
maintaining rigorous standards
358
00:19:10,674 --> 00:19:14,642
for production systems while
accepting approximations for
359
00:19:14,736 --> 00:19:16,236
early-stage experimentation.
360
00:19:17,626 --> 00:19:21,892
This single adjustment created
coherence that allowed both
361
00:19:22,064 --> 00:19:25,567
rapid innovation and reliable
production systems The third
362
00:19:25,607 --> 00:19:29,167
requirement, alignment, connects
your Strategy to broader
363
00:19:29,268 --> 00:19:31,468
organizational goals and
competitive context.
364
00:19:32,249 --> 00:19:35,565
Even the most consistent and
coherent data science Strategy
365
00:19:35,972 --> 00:19:39,167
fails if it doesn't help the
organization win in its specific
366
00:19:39,253 --> 00:19:42,464
competitive environment. A
retail analytics team I worked
367
00:19:42,495 --> 00:19:45,573
with had developed a beautifully
coherent Strategy focused on
368
00:19:45,932 --> 00:19:49,526
sophisticated customer lifetime
value modeling. Their behavioral
369
00:19:49,573 --> 00:19:52,167
commitments all supported this
focus consistently.
370
00:19:53,131 --> 00:19:56,178
The problem? Their organization
competed primarily on supply
371
00:19:56,258 --> 00:19:59,547
chain efficiency, not customer
intimacy. While their Strategy
372
00:19:59,606 --> 00:20:02,925
was internally sound, It lacked
alignment with organizational
373
00:20:02,986 --> 00:20:06,269
priorities. Creating alignment
requires understanding how your
374
00:20:06,328 --> 00:20:09,011
team's distinctive capabilities
contribute to your
375
00:20:09,070 --> 00:20:10,875
organization's competitive
position.
376
00:20:11,476 --> 00:20:14,359
This means regularly reassessing
whether your behavioral
377
00:20:14,414 --> 00:20:17,508
commitments still serve the
organization's evolving needs.
378
00:20:18,023 --> 00:20:21,179
The retail analytics team
ultimately revised their
379
00:20:21,242 --> 00:20:23,992
Strategy to focus on inventory
optimization and demand
380
00:20:24,039 --> 00:20:27,023
forecasting, creating immediate
value recognition from
381
00:20:27,101 --> 00:20:27,523
leadership.
382
00:20:28,516 --> 00:20:31,560
These three requirements become
exponentially more difficult to
383
00:20:31,579 --> 00:20:34,622
maintain as data science teams
scale. With a team of three,
384
00:20:35,384 --> 00:20:37,849
consistency often emerges
naturally through daily
385
00:20:37,927 --> 00:20:40,825
interactions. With 30 team
members spread across different
386
00:20:40,888 --> 00:20:44,411
projects and locations,
maintaining consistency requires
387
00:20:45,099 --> 00:20:47,552
deliberate communication and
governance structures.
388
00:20:48,474 --> 00:20:52,224
A global insurance company I
advised struggled with this
389
00:20:52,536 --> 00:20:55,880
exact challenge. Their data
science Strategy appeared sound
390
00:20:55,881 --> 00:20:59,502
on paper. But regional teams
interpreted and implemented
391
00:20:59,624 --> 00:21:02,206
behavioral commitments
differently based on local
392
00:21:02,245 --> 00:21:05,405
conditions. The result was
fragmentation rather than
393
00:21:05,491 --> 00:21:06,311
collective impact.
394
00:21:07,186 --> 00:21:10,592
Similarly, coherence becomes
more challenging as teams grow
395
00:21:10,655 --> 00:21:13,749
because different subgroups
naturally optimize for different
396
00:21:13,811 --> 00:21:16,358
outcomes based on their specific
responsibilities.
397
00:21:17,592 --> 00:21:21,186
Alignment becomes more complex
as teams must interface with
398
00:21:21,389 --> 00:21:24,780
more stakeholders holding
divergent priorities. The
399
00:21:24,800 --> 00:21:27,163
structured governance that helps
larger teams maintain
400
00:21:27,221 --> 00:21:30,167
consistency can sometimes hinder
the flexibility needed for
401
00:21:30,225 --> 00:21:32,487
alignment with changing
organizational needs.
402
00:21:33,409 --> 00:21:37,276
When data science strategies
fail, despite being focused on
403
00:21:37,315 --> 00:21:40,518
behavioral commitments rather
than project lists, the root
404
00:21:40,596 --> 00:21:43,495
cause typically traces back to
missing one of these three
405
00:21:43,542 --> 00:21:44,135
requirements.
406
00:21:45,073 --> 00:21:48,057
A technology company I worked
with committed to democratizing
407
00:21:48,089 --> 00:21:50,339
data access by building
self-service tools for all
408
00:21:50,385 --> 00:21:53,260
departments. This behavioral
commitment was clear and
409
00:21:53,323 --> 00:21:56,266
consistently followed. But
lacked coherence with their
410
00:21:56,346 --> 00:21:59,567
other commitment to protecting
sensitive customer information.
411
00:22:00,310 --> 00:22:04,251
The result was constant security
exceptions, duplicated efforts
412
00:22:04,290 --> 00:22:07,399
to build department-specific
solutions with varying controls,
413
00:22:07,993 --> 00:22:11,899
and frustrated stakeholders.
Another common failure pattern
414
00:22:12,087 --> 00:22:14,884
is when teams maintain
consistency and coherence but
415
00:22:14,978 --> 00:22:18,446
lose alignment over time. An
energy sector analytics team
416
00:22:18,868 --> 00:22:22,149
followed their Strategy of
building advanced predictive
417
00:22:22,212 --> 00:22:24,469
maintenance models. With
impressive discipline.
418
00:22:24,910 --> 00:22:27,672
Their behavioral commitments
were consistent and coherent.
419
00:22:27,871 --> 00:22:30,797
However, when market pressures
shifted their company's focus to
420
00:22:30,855 --> 00:22:33,801
renewable energy initiatives,
they continued optimizing
421
00:22:33,840 --> 00:22:36,777
traditional operations while the
organization pivoted around
422
00:22:36,824 --> 00:22:40,887
them. Despite executing their
Strategy flawlessly, they became
423
00:22:40,949 --> 00:22:43,090
increasingly irrelevant to
business outcomes.
424
00:22:43,605 --> 00:22:45,996
Testing your data science
Strategy against these three
425
00:22:46,027 --> 00:22:49,105
requirements provides a powerful
way to identify potential
426
00:22:49,168 --> 00:22:53,552
failure points before they
manifest. Ask yourself. Will
427
00:22:53,612 --> 00:22:56,594
these behavioral commitments
still apply when conditions
428
00:22:56,655 --> 00:23:00,460
change? Consistency. Do these
commitments support or
429
00:23:00,499 --> 00:23:02,378
contradict each other?
Coherence.
430
00:23:03,284 --> 00:23:05,807
And do these commitments help
the organization win in its
431
00:23:05,846 --> 00:23:07,565
competitive context? Alignment.
432
00:23:08,448 --> 00:23:12,089
Why data science teams struggle
with Strategy? Testing your data
433
00:23:12,151 --> 00:23:15,339
science Strategy against these
requirements reveals an
434
00:23:15,511 --> 00:23:18,417
uncomfortable truth. Data
science teams operate in
435
00:23:18,479 --> 00:23:21,354
organizational territory where
consistency see.
436
00:23:21,456 --> 00:23:24,579
Coherence and alignment are
uniquely difficult to maintain.
437
00:23:25,020 --> 00:23:28,544
What if the very nature of data
science work itself, not poor
438
00:23:28,602 --> 00:23:32,227
leadership or unclear vision, is
what makes strategic success so
439
00:23:32,345 --> 00:23:36,290
elusive? Data science occupies a
peculiar position in most
440
00:23:36,352 --> 00:23:37,048
organizations.
441
00:23:38,157 --> 00:23:42,235
Unlike marketing, sales, or even
traditional IT, data teams sit
442
00:23:42,579 --> 00:23:45,532
at a complex intersection.
They're highly technical
443
00:23:45,595 --> 00:23:47,782
specialists who must
simultaneously translate
444
00:23:47,876 --> 00:23:51,805
abstract concepts into business
value. This hybrid identity
445
00:23:51,885 --> 00:23:55,709
creates an organizational limbo
where data teams are expected to
446
00:23:55,710 --> 00:23:59,635
be both innovative researchers
and reliable service providers,
447
00:24:00,213 --> 00:24:03,018
often to multiple stakeholders
with competing priorities.
448
00:24:03,994 --> 00:24:07,198
This positioning creates
strategic quicksand that few
449
00:24:07,307 --> 00:24:10,182
leaders are prepared to
navigate. Consider how data
450
00:24:10,229 --> 00:24:13,979
science must bridge multiple
worlds. They need deep technical
451
00:24:14,026 --> 00:24:16,963
expertise to implement
solutions, business domain
452
00:24:17,026 --> 00:24:22,151
knowledge to identify valuable
problems, and political savvy to
453
00:24:22,190 --> 00:24:23,991
navigate organizational
priorities.
454
00:24:24,893 --> 00:24:27,534
Each of these domains operates
on different timescales and
455
00:24:27,557 --> 00:24:29,534
success metrics, making
consistent behavioral
456
00:24:29,581 --> 00:24:32,721
commitments extraordinarily
difficult. The technological
457
00:24:32,784 --> 00:24:36,088
foundation of data science
brings its own strategic
458
00:24:36,151 --> 00:24:36,917
complications.
459
00:24:37,120 --> 00:24:40,432
While marketing strategies might
remain stable for years, data
460
00:24:40,495 --> 00:24:43,292
science teams face a landscape
where foundational tools and
461
00:24:43,307 --> 00:24:46,432
techniques evolve quarterly. A
commitment to specific
462
00:24:46,495 --> 00:24:49,580
technologies, whether database
architectures, programming
463
00:24:49,640 --> 00:24:52,842
frameworks or model
architectures risks becoming
464
00:24:53,003 --> 00:24:56,487
obsolete before the Strategy can
even be fully implemented.
465
00:24:56,866 --> 00:24:59,854
What other department faces a
situation where their primary
466
00:24:59,932 --> 00:25:03,010
tools might be rendered outdated
by a single research paper or
467
00:25:03,112 --> 00:25:06,095
open source release? Take the
experience of a mid-size
468
00:25:06,135 --> 00:25:09,520
insurance company that committed
to a Strategy centered around
469
00:25:09,559 --> 00:25:11,141
traditional machine learning
models.
470
00:25:11,641 --> 00:25:14,621
Six months into implementation,
advances in transformer-based
471
00:25:14,707 --> 00:25:17,223
architectures made their
approach significantly less
472
00:25:17,270 --> 00:25:20,676
competitive. Their commitment to
a specific technical approach,
473
00:25:21,082 --> 00:25:24,395
rather than to the behavioral
pattern of continuously
474
00:25:24,473 --> 00:25:28,535
evaluating emerging methods,
left them scrambling to catch up
475
00:25:28,816 --> 00:25:30,441
while competitors surged ahead.
476
00:25:31,457 --> 00:25:34,575
Beyond the technical flux, Data
science teams face unique
477
00:25:34,615 --> 00:25:37,900
challenges in maintaining
coherence across their strategic
478
00:25:37,939 --> 00:25:40,380
commitments. Their
cross-functional nature means
479
00:25:40,482 --> 00:25:42,786
they often serve as the
connective tissue between
480
00:25:42,825 --> 00:25:45,427
departments with fundamentally
different perspectives and
481
00:25:45,443 --> 00:25:46,005
incentives.
482
00:25:46,990 --> 00:25:49,630
Product teams want quick
experiments to validate
483
00:25:49,677 --> 00:25:52,974
features, finance needs,
reliable forecasting models,
484
00:25:53,693 --> 00:25:57,661
operations, demands, efficient
optimization, algorithms, and
485
00:25:57,755 --> 00:26:01,378
executives request comprehensive
dashboards. All from the same
486
00:26:01,439 --> 00:26:04,062
team working with the same
finite resources.
487
00:26:05,222 --> 00:26:07,644
A healthcare analytics startup
illustrated this challenge
488
00:26:07,706 --> 00:26:11,066
perfectly when they attempted to
simultaneously commit to rapid
489
00:26:11,128 --> 00:26:14,831
experimentation for clinical
products while also promising
490
00:26:15,034 --> 00:26:18,042
enterprise-grade reliability for
their patient management
491
00:26:18,074 --> 00:26:18,449
systems.
492
00:26:19,417 --> 00:26:22,152
These behavioral commitments
directly contradicted each other
493
00:26:22,199 --> 00:26:25,324
in practice, creating impossible
situations where team members
494
00:26:25,386 --> 00:26:28,730
couldn't satisfy both strategic
directions simultaneously.
495
00:26:29,805 --> 00:26:32,128
When pushed to prioritize,
leadership would often give
496
00:26:32,167 --> 00:26:35,771
conflicting guidance, depending
on which stakeholder had most
497
00:26:35,829 --> 00:26:39,017
recently raised concerns. The
alignment challenge for data
498
00:26:39,072 --> 00:26:42,337
science stems from its
relatively novel position in
499
00:26:42,517 --> 00:26:43,822
organizational hierarchies.
500
00:26:44,556 --> 00:26:47,556
While established departments
like finance or sales have
501
00:26:47,618 --> 00:26:51,165
clearly defined relationships to
business outcomes, data
502
00:26:51,228 --> 00:26:53,931
science's contribution can be
more difficult to quantify and
503
00:26:53,947 --> 00:26:57,926
communicate. This creates an
alignment gap where Data teams
504
00:26:58,026 --> 00:27:00,549
might technically deliver on
their behavioral commitments
505
00:27:01,009 --> 00:27:03,990
while still failing to connect
those behaviors to competitive
506
00:27:04,033 --> 00:27:04,513
advantage.
507
00:27:05,357 --> 00:27:08,677
A telecommunications provider
exemplified this struggle when
508
00:27:08,756 --> 00:27:11,701
their data science team
perfectly executed on their
509
00:27:11,841 --> 00:27:15,123
strategic commitment to develop
sophisticated customer
510
00:27:15,185 --> 00:27:16,170
segmentation models.
511
00:27:17,201 --> 00:27:20,248
The models were technically
impressive, statistically sound,
512
00:27:20,591 --> 00:27:23,123
and delivered on schedule.
However, because the team hadn't
513
00:27:23,170 --> 00:27:25,670
aligned their Strategy with the
organization's primary
514
00:27:25,732 --> 00:27:29,319
competitive challenge, reducing
network infrastructure costs.
515
00:27:30,120 --> 00:27:33,665
The sophisticated segmentation
work generated minimal business
516
00:27:33,723 --> 00:27:35,665
value despite being a technical
success.
517
00:27:36,587 --> 00:27:40,368
For smaller data science teams,
these strategic challenges often
518
00:27:40,454 --> 00:27:44,040
manifest as whiplash-inducing
priority shifts. A three-person
519
00:27:44,071 --> 00:27:47,430
data team at a logistics startup
found themselves ricocheting
520
00:27:47,477 --> 00:27:50,352
between commitments to build
predictive maintenance
521
00:27:50,384 --> 00:27:54,821
capabilities and enhance
customer-facing analytics.
522
00:27:55,505 --> 00:27:59,390
Because different executives had
different visions of how data
523
00:27:59,429 --> 00:28:00,769
science should create value.
524
00:28:02,191 --> 00:28:05,394
Without a consistent strategic
direction that the organization
525
00:28:05,457 --> 00:28:08,800
had collectively endorsed, the
team's behavior became reactive
526
00:28:08,980 --> 00:28:12,394
rather than strategic. At the
enterprise scale, these
527
00:28:12,457 --> 00:28:15,378
challenges can create strategic
fragmentation.
528
00:28:15,832 --> 00:28:19,988
A global manufacturing company
with data scientists embedded
529
00:28:20,050 --> 00:28:23,394
across multiple business units
discovered that each team had
530
00:28:23,425 --> 00:28:25,479
developed different and
sometimes contradictory
531
00:28:25,539 --> 00:28:29,162
behavioral commitments. Some
prioritized algorithmic
532
00:28:29,244 --> 00:28:34,268
sophistication, others focused
on stakeholder partnership, and
533
00:28:34,330 --> 00:28:36,534
still others emphasized
production engineering
534
00:28:36,588 --> 00:28:37,073
excellence.
535
00:28:38,174 --> 00:28:40,721
When these teams needed to
collaborate on cross-functional
536
00:28:40,752 --> 00:28:44,330
initiatives, these different
behavioral patterns created
537
00:28:44,565 --> 00:28:48,065
significant friction and
inefficiency. The experimental
538
00:28:48,143 --> 00:28:51,784
nature of data science work
amplifies these strategic
539
00:28:51,846 --> 00:28:56,510
difficulties. Unlike departments
with predictable workflows and
540
00:28:56,651 --> 00:29:00,491
outcomes, data teams engage in
work with inherently uncertain
541
00:29:00,573 --> 00:29:01,034
results.
542
00:29:01,534 --> 00:29:05,690
Models may not achieve expected
accuracy, data quality issues
543
00:29:05,870 --> 00:29:10,127
might emerge midway through
projects, or analysis might
544
00:29:10,174 --> 00:29:14,237
reveal that initial assumptions
were incorrect. This uncertainty
545
00:29:14,299 --> 00:29:16,877
makes it challenging to
establish consistent behavioral
546
00:29:16,940 --> 00:29:20,721
patterns when the work itself
requires adaptation and course
547
00:29:20,737 --> 00:29:21,143
correction.
548
00:29:22,449 --> 00:29:25,932
A digital native retail company
committed to a behavioral
549
00:29:26,014 --> 00:29:30,158
pattern of delivering model
updates weekly, but found this
550
00:29:30,377 --> 00:29:33,236
commitment impossible to
maintain because some models
551
00:29:33,299 --> 00:29:36,502
required extensive retraining
and validation before
552
00:29:36,526 --> 00:29:37,104
deployment.
553
00:29:37,721 --> 00:29:40,526
Their technical reality
conflicted with their strategic
554
00:29:40,588 --> 00:29:43,791
commitment, creating tension
between quality and consistency,
555
00:29:44,432 --> 00:29:47,557
only when they refined their
Strategy to commit to regular,
556
00:29:47,697 --> 00:29:49,369
risk-appropriate update cycles.
557
00:29:49,745 --> 00:29:51,788
Could they establish a
sustainable pattern that
558
00:29:51,849 --> 00:29:54,052
accommodated the inherent
uncertainty in their work?
559
00:29:54,673 --> 00:29:58,478
Additionally, data science teams
face the challenge of balancing
560
00:29:58,501 --> 00:30:01,829
exploration, discovering new
insights and approaches, with
561
00:30:01,884 --> 00:30:05,063
exploitation. Delivering
reliable value from established
562
00:30:05,123 --> 00:30:05,502
methods.
563
00:30:06,924 --> 00:30:10,129
This dual mandate creates
strategic tension that few other
564
00:30:10,149 --> 00:30:13,293
departments face so acutely.
Marketing might test new
565
00:30:13,372 --> 00:30:17,793
channels, but data science must
often simultaneously explore
566
00:30:17,817 --> 00:30:21,239
entirely new methodologies while
delivering consistent results
567
00:30:21,254 --> 00:30:22,145
from existing ones.
568
00:30:23,098 --> 00:30:25,879
A financial services analytics
team tried to resolve this
569
00:30:25,942 --> 00:30:28,270
tension by assigning different
team members to either
570
00:30:28,426 --> 00:30:31,618
innovation or production work
only to discover that this
571
00:30:31,677 --> 00:30:34,582
created knowledge silos and
inconsistent outputs.
572
00:30:35,843 --> 00:30:39,504
Their revised Strategy committed
instead to a behavior of
573
00:30:39,949 --> 00:30:45,269
time-boxed exploration within
production cycles, allowing all
574
00:30:45,730 --> 00:30:49,363
team members to participate in
both modes while maintaining
575
00:30:49,394 --> 00:30:51,004
coherent delivery patterns.
576
00:30:51,863 --> 00:30:54,457
These strategic challenges
aren't signs of failure. They're
577
00:30:54,488 --> 00:30:57,222
inherent to the position data
science occupies in modern
578
00:30:57,269 --> 00:31:01,081
organizations. The teams that
succeed strategically Recognize
579
00:31:01,121 --> 00:31:04,224
these unique difficulties and
craft strategies that explicitly
580
00:31:04,265 --> 00:31:06,706
account for them rather than
struggling against them.
581
00:31:07,488 --> 00:31:11,831
Learning from R&D Strategic
Lessons for Data Science The
582
00:31:11,855 --> 00:31:14,894
strategic difficulties facing
data science aren't unique in
583
00:31:14,895 --> 00:31:17,613
the corporate landscape. They're
remarkably similar to challenges
584
00:31:17,659 --> 00:31:20,847
that R&D departments have been
solving since the 1950s.
585
00:31:21,784 --> 00:31:25,144
Yet most data leaders overlook
this valuable source of
586
00:31:25,191 --> 00:31:28,550
strategic wisdom, attempting to
build frameworks from scratch
587
00:31:28,988 --> 00:31:32,835
rather than adapt. Proven
approaches. When we examine the
588
00:31:32,976 --> 00:31:35,376
function of research and
development departments across
589
00:31:35,458 --> 00:31:38,243
industries, the parallels with
data science become striking.
590
00:31:38,923 --> 00:31:42,845
Both operate at the intersection
of discovery and practical
591
00:31:42,907 --> 00:31:47,712
application. Both face uncertain
outcomes and timelines. Both
592
00:31:47,775 --> 00:31:49,993
must balance deep technical
expertise with business
593
00:31:50,071 --> 00:31:52,603
relevance. And perhaps most
importantly, both must deliver
594
00:31:52,650 --> 00:31:55,400
innovation while maintaining
enough predictability to satisfy
595
00:31:55,556 --> 00:31:56,556
organizational demands.
596
00:31:57,196 --> 00:32:00,787
This similarity isn't merely
superficial. The strategic
597
00:32:00,867 --> 00:32:04,713
frameworks that have guided R&D
departments through decades of
598
00:32:04,771 --> 00:32:08,717
technological revolution offer
ready-made solutions to many of
599
00:32:08,718 --> 00:32:12,115
the unique challenges data
science teams face today.
600
00:32:12,756 --> 00:32:15,842
Corporate R&D departments
pioneered approaches to managing
601
00:32:15,904 --> 00:32:18,779
innovation portfolios long
before data science entered our
602
00:32:18,826 --> 00:32:22,810
vocabulary. Consider how mature
R&D organizations approach
603
00:32:22,967 --> 00:32:27,013
portfolio management. They don't
view projects as independent
604
00:32:27,076 --> 00:32:30,290
initiatives, but as a
deliberately balanced collection
605
00:32:30,768 --> 00:32:34,050
designed to distribute risk
while maximizing potential
606
00:32:34,089 --> 00:32:34,589
returns.
607
00:32:35,991 --> 00:32:39,593
A typical R&D portfolio might
allocate approximately 70% of
608
00:32:39,608 --> 00:32:42,632
resources toward incremental
improvements to existing
609
00:32:42,694 --> 00:32:47,132
products, 20% toward adjacent
innovations that extend into new
610
00:32:47,210 --> 00:32:51,132
markets or technologies, and 10%
toward transformational
611
00:32:51,272 --> 00:32:54,116
moonshots that could
fundamentally reshape the
612
00:32:54,132 --> 00:32:54,476
business.
613
00:32:56,109 --> 00:32:59,112
One pharmaceutical data science
organization that adopted this
614
00:32:59,273 --> 00:33:01,476
R&D-inspired approach
transformed their strategic
615
00:33:01,534 --> 00:33:02,276
approach completely.
616
00:33:02,874 --> 00:33:06,159
Rather than evaluating each
potential project in isolation,
617
00:33:06,722 --> 00:33:11,722
they classified initiatives as
incremental, improving existing
618
00:33:11,909 --> 00:33:16,816
analytical models, adjacent,
applying proven techniques to
619
00:33:16,862 --> 00:33:21,347
new business domains, or
transformational, exploring
620
00:33:21,409 --> 00:33:25,586
cutting-edge AI methodologies.
With uncertain but potentially
621
00:33:25,687 --> 00:33:26,648
massive returns.
622
00:33:27,951 --> 00:33:31,111
This portfolio view allowed them
to maintain a healthy innovation
623
00:33:31,193 --> 00:33:33,958
pipeline while still delivering
predictable short-term value,
624
00:33:34,318 --> 00:33:37,021
precisely the balance many data
science teams struggle to
625
00:33:37,060 --> 00:33:40,818
achieve. Another core R&D
strategic principle involves
626
00:33:40,896 --> 00:33:42,568
deliberately structuring time
horizons.
627
00:33:42,958 --> 00:33:45,833
Unlike many corporate functions
that operate primarily on
628
00:33:45,943 --> 00:33:50,177
quarterly cycles, sophisticated
R&D organizations simultaneously
629
00:33:50,224 --> 00:33:53,521
manage initiatives across
multiple time horizons, from
630
00:33:53,725 --> 00:33:56,787
immediate tactical improvements
to decade-long fundamental
631
00:33:56,848 --> 00:34:00,430
research. This multi-horizon
approach helps organizations
632
00:34:00,531 --> 00:34:03,457
avoid the common trap of
sacrificing long-term innovation
633
00:34:03,535 --> 00:34:04,879
for short-term deliverables.
634
00:34:05,535 --> 00:34:08,777
A financial services data
science team incorporated this
635
00:34:08,817 --> 00:34:11,504
principle by establishing three
parallel work streams with
636
00:34:11,535 --> 00:34:15,332
different time horizons. One
team focused on immediate
637
00:34:15,410 --> 00:34:17,567
analytical needs with two-week
delivery cycles.
638
00:34:18,004 --> 00:34:21,238
A second team tackled
medium-term innovations with
639
00:34:21,332 --> 00:34:24,951
quarterly objectives. A third
small team explored emerging
640
00:34:24,990 --> 00:34:27,914
technologies and methodologies
with annual goals and
641
00:34:27,933 --> 00:34:30,394
lightweight accountability
structures. Rather than
642
00:34:30,476 --> 00:34:33,922
competing for resources, these
teams operated as a coherent
643
00:34:33,976 --> 00:34:37,641
ecosystem, each reinforcing the
other's work while delivering
644
00:34:37,680 --> 00:34:39,484
value across different
timescales.
645
00:34:40,109 --> 00:34:42,609
R&D organizations have also
mastered the art of risk
646
00:34:42,703 --> 00:34:45,187
balancing through their
strategic approaches. They
647
00:34:45,266 --> 00:34:49,187
recognize that innovation
inherently involves failure, but
648
00:34:49,250 --> 00:34:52,000
they make this palatable to the
broader organization by
649
00:34:52,062 --> 00:34:55,551
structuring. How and when those
failures occur.
650
00:34:56,853 --> 00:35:00,102
Early-stage ideas face rigorous
but appropriate testing designed
651
00:35:00,121 --> 00:35:03,430
to quickly eliminate non-viable
concepts before significant
652
00:35:03,469 --> 00:35:06,987
investment occurs. As concepts
prove themselves, they receive
653
00:35:07,108 --> 00:35:09,889
progressively more resources and
increasingly stringent
654
00:35:09,928 --> 00:35:12,893
evaluation. A technology
company's data science division
655
00:35:12,932 --> 00:35:15,877
applied this staged funding
approach to their predictive
656
00:35:15,917 --> 00:35:16,854
modeling initiatives.
657
00:35:17,854 --> 00:35:21,479
Initial concepts received
minimal resources but faced
658
00:35:21,713 --> 00:35:24,792
weekly viability checks. Models
that demonstrated promise
659
00:35:24,838 --> 00:35:27,792
graduated to more substantial
funding with monthly evaluation
660
00:35:27,854 --> 00:35:30,448
cycles. Only proven approaches
that cleared these hurdles
661
00:35:30,495 --> 00:35:32,713
received full production
implementation resources.
662
00:35:32,948 --> 00:35:36,111
This staged approach... Allowed
the team to explore dozens of
663
00:35:36,171 --> 00:35:39,755
potential innovations while
focusing substantial resources
664
00:35:39,994 --> 00:35:42,841
only on approaches with
demonstrated potential, a
665
00:35:42,857 --> 00:35:46,201
dramatic improvement over their
previous all-or-nothing funding
666
00:35:46,240 --> 00:35:46,497
model.
667
00:35:47,404 --> 00:35:50,138
Perhaps the most valuable
strategic framework that data
668
00:35:50,201 --> 00:35:53,607
science can borrow from R&D
involves how these departments
669
00:35:53,966 --> 00:35:56,591
handle the fundamental tension
between exploration and
670
00:35:56,638 --> 00:35:59,888
exploitation. R&D leaders
understand that organizations
671
00:36:00,138 --> 00:36:02,242
need both. Breakthrough
innovations and continuous
672
00:36:02,283 --> 00:36:03,763
improvements to existing
offerings.
673
00:36:04,183 --> 00:36:07,929
Rather than treating this as a
binary choice, sophisticated R&D
674
00:36:08,046 --> 00:36:11,050
departments create structural
solutions that accommodate both
675
00:36:11,128 --> 00:36:14,714
needs. A healthcare analytics
organization that adopted this
676
00:36:14,777 --> 00:36:18,746
principle created distinct teams
with different behavioral
677
00:36:18,793 --> 00:36:19,277
commitments.
678
00:36:19,902 --> 00:36:23,527
Their exploration team operated
with greater autonomy, longer
679
00:36:23,558 --> 00:36:27,230
time horizons, and acceptance of
higher failure rates. Their
680
00:36:27,339 --> 00:36:30,785
exploitation team focused on
refining and scaling. Proven
681
00:36:30,805 --> 00:36:33,128
approaches with more structured
processes and delivery
682
00:36:33,187 --> 00:36:33,888
expectations.
683
00:36:34,468 --> 00:36:37,792
Critically, they established
deliberate transfer mechanisms
684
00:36:37,831 --> 00:36:40,835
between these teams, ensuring
successful explorations
685
00:36:41,335 --> 00:36:44,898
eventually became reliable
exploitations. R&D departments
686
00:36:44,921 --> 00:36:47,663
have also pioneered approaches
to measuring outcomes under
687
00:36:47,742 --> 00:36:51,538
uncertainty, another challenge
that plagues data science teams.
688
00:36:52,445 --> 00:36:55,507
Rather than attempting to
predict precise ROI for
689
00:36:55,617 --> 00:36:59,185
innovative initiatives, mature
R&D organizations establish
690
00:36:59,285 --> 00:37:02,528
learning objectives and progress
metrics that acknowledge the
691
00:37:02,589 --> 00:37:04,852
inherent uncertainty of
discovery work.
692
00:37:06,051 --> 00:37:09,313
A manufacturing company's data
science team shifted from
693
00:37:09,438 --> 00:37:12,477
attempting to quantify exact
financial returns for
694
00:37:12,618 --> 00:37:15,415
early-stage machine learning
initiatives to measuring
695
00:37:15,696 --> 00:37:19,071
learning velocity and knowledge
acquisition. For projects in the
696
00:37:19,072 --> 00:37:22,915
discovery phase, success metrics
included hypothesis validation
697
00:37:22,993 --> 00:37:25,930
rates, dataset quality
improvements, and reduction in
698
00:37:25,993 --> 00:37:28,055
predictive errors, not direct...
699
00:37:28,137 --> 00:37:31,358
Business outcomes. As
initiatives matured, measurement
700
00:37:31,438 --> 00:37:34,139
shifted toward operational
metrics and ultimately financial
701
00:37:34,198 --> 00:37:38,358
impact. This staged measurement
approach aligned perfectly with
702
00:37:38,381 --> 00:37:42,256
the inherent uncertainty of data
innovation. The strategic
703
00:37:42,342 --> 00:37:45,467
sophistication of R&D extends to
how these departments handle
704
00:37:45,499 --> 00:37:46,014
their talent.
705
00:37:46,124 --> 00:37:49,249
They recognize that innovation
requires different skills and
706
00:37:49,264 --> 00:37:51,827
working styles than
optimization, and they structure
707
00:37:51,858 --> 00:37:55,795
roles accordingly. Some R&D
staff excel at exploratory
708
00:37:55,858 --> 00:37:59,685
research while others specialize
in translating discoveries into
709
00:37:59,763 --> 00:38:03,427
practical applications. A retail
data science team applied this
710
00:38:03,485 --> 00:38:06,173
principle by creating
differentiated roles that
711
00:38:06,212 --> 00:38:07,970
acknowledge these distinct skill
sets.
712
00:38:08,931 --> 00:38:11,978
Some data scientists focused on
experimental applications and
713
00:38:12,032 --> 00:38:15,040
novel analytical approaches,
while others specialized in
714
00:38:15,134 --> 00:38:18,478
hardening promising techniques
into reliable production-grade
715
00:38:18,509 --> 00:38:18,978
solutions.
716
00:38:19,931 --> 00:38:23,071
By recognizing these as
complementary rather than
717
00:38:23,149 --> 00:38:26,345
competing approaches, they
created career paths. That
718
00:38:26,465 --> 00:38:30,507
valued both innovation and
implementation expertise. What
719
00:38:30,566 --> 00:38:34,164
makes these R&D strategic
approaches so valuable to data
720
00:38:34,226 --> 00:38:37,304
science is how directly they
address the unique challenges we
721
00:38:37,406 --> 00:38:38,265
identified earlier.
722
00:38:39,367 --> 00:38:42,343
The portfolio approach provides
a framework for maintaining
723
00:38:42,390 --> 00:38:45,562
consistency across diverse
initiatives. Multi-horizon
724
00:38:45,625 --> 00:38:48,515
planning offers a path to
coherence when balancing short-
725
00:38:48,547 --> 00:38:51,450
and long-term objectives. And
the structured approach to
726
00:38:51,630 --> 00:38:54,651
exploration and exploitation
helps maintain alignment between
727
00:38:54,733 --> 00:38:57,034
innovative impulses and
organizational needs.
728
00:38:58,636 --> 00:39:01,917
Best of all, these strategic
approaches come with decades of
729
00:39:01,964 --> 00:39:04,425
refinement and practical
validation across industries.
730
00:39:04,886 --> 00:39:07,886
Data science leaders don't need
to invent strategic frameworks
731
00:39:07,932 --> 00:39:10,964
from scratch. They can adapt
proven approaches from a
732
00:39:10,995 --> 00:39:13,807
discipline that has faced
similar challenges for
733
00:39:13,854 --> 00:39:14,511
generations.
734
00:39:15,479 --> 00:39:19,493
Applying Strategy to AI and ML
teams. Adapting proven
735
00:39:19,573 --> 00:39:22,514
frameworks is essential, but
what happens when your team
736
00:39:22,574 --> 00:39:25,375
ventures into the uncharted
territory of artificial
737
00:39:25,414 --> 00:39:30,219
intelligence? Despite borrowing
strategic wisdom from R&D, I
738
00:39:30,234 --> 00:39:34,437
discovered, through painful
experience, that AI and ML teams
739
00:39:34,898 --> 00:39:38,070
face unique challenges that
require fundamentally different
740
00:39:38,164 --> 00:39:40,430
behavioral commitments than
other data disciplines.
741
00:39:41,070 --> 00:39:44,476
My first leadership role over an
AI team taught me this lesson
742
00:39:44,492 --> 00:39:47,914
the hard way. We had implemented
a data science Strategy that
743
00:39:48,039 --> 00:39:50,744
worked brilliantly for our
analytics projects, clear
744
00:39:50,785 --> 00:39:53,471
timelines, defined deliverables,
and structured evaluation
745
00:39:53,510 --> 00:39:56,818
metrics. But when we applied the
same approach to our machine
746
00:39:56,857 --> 00:39:59,678
learning initiatives, we hit
unexpected roadblocks that no
747
00:39:59,679 --> 00:39:59,982
one had ever seen.
748
00:40:00,120 --> 00:40:03,544
Amount of planning could solve.
The core issue became evident.
749
00:40:04,263 --> 00:40:07,548
AI and machine learning work
operates under fundamentally
750
00:40:07,587 --> 00:40:10,552
different conditions than
traditional analytics. The
751
00:40:10,607 --> 00:40:13,912
uncertainty isn't just a factor,
it's the dominant condition.
752
00:40:14,294 --> 00:40:17,576
While analytics teams can often
predict how long it will take to
753
00:40:17,638 --> 00:40:21,576
extract insights from existing
data, AI teams are navigating a
754
00:40:21,607 --> 00:40:24,982
landscape where the very
feasibility of a solution might
755
00:40:25,029 --> 00:40:29,013
remain unknown until significant
resources have been invested.
756
00:40:29,760 --> 00:40:33,603
This unpredictability stems from
three characteristics unique to
757
00:40:33,664 --> 00:40:37,746
AI ML work. First, the search
space for solutions is
758
00:40:38,285 --> 00:40:41,191
exponentially larger, with
countless architectural
759
00:40:41,230 --> 00:40:44,957
decisions, hyperparameter
configurations, and data
760
00:40:45,035 --> 00:40:47,738
transformations that might
unlock performance
761
00:40:47,754 --> 00:40:48,238
breakthroughs.
762
00:40:49,332 --> 00:40:52,660
Second, the relationship between
input and output is often
763
00:40:52,847 --> 00:40:56,644
non-linear. Small changes can
produce dramatic improvements or
764
00:40:56,691 --> 00:40:57,972
failures with little warning.
765
00:40:59,352 --> 00:41:02,593
Third, the infrastructure
requirements evolve rapidly,
766
00:41:03,073 --> 00:41:06,073
sometimes necessitating complete
rebuilds of systems that worked
767
00:41:06,155 --> 00:41:09,675
perfectly just months earlier. A
Strategy designed for business
768
00:41:09,714 --> 00:41:13,097
intelligence or even traditional
statistical modeling simply
769
00:41:13,136 --> 00:41:15,401
doesn't accommodate these
realities. It's like trying to
770
00:41:15,448 --> 00:41:18,433
use a roadmap for ocean
navigation. The tools and
771
00:41:18,434 --> 00:41:20,839
assumptions fundamentally don't
match the territory.
772
00:41:22,214 --> 00:41:24,433
Consider what happened at a
computer vision startup I
773
00:41:24,464 --> 00:41:28,215
consulted for. Their initial
Strategy emphasized consistent
774
00:41:28,274 --> 00:41:31,337
weekly progress demonstrations
to investors. This worked
775
00:41:31,419 --> 00:41:33,997
perfectly for their dashboard
and analytics features, but
776
00:41:34,059 --> 00:41:37,465
created immense pressure on
their object detection team, who
777
00:41:37,504 --> 00:41:40,989
experienced weeks of seemingly
no progress, followed by sudden
778
00:41:41,067 --> 00:41:41,606
breakthroughs.
779
00:41:42,145 --> 00:41:45,129
The weekly demonstration cadence
pushed the team toward
780
00:41:45,254 --> 00:41:48,317
incremental improvements to show
something, rather than the
781
00:41:48,333 --> 00:41:51,692
exploratory work needed for
significant advances. The
782
00:41:51,739 --> 00:41:53,661
solution was a complete
strategic reframing.
783
00:41:54,484 --> 00:41:57,645
Rather than committing to weekly
visual progress, they shifted to
784
00:41:57,646 --> 00:42:00,606
a behavioral pattern of
maintaining comprehensive
785
00:42:00,645 --> 00:42:03,786
experiment logs and weekly
research reviews focused on
786
00:42:03,864 --> 00:42:06,966
learning rather than results.
This single strategic shift
787
00:42:07,286 --> 00:42:10,325
transformed their team's
performance, ultimately leading
788
00:42:10,380 --> 00:42:14,114
to a technical breakthrough that
became their core competitive
789
00:42:14,208 --> 00:42:14,755
advantage.
790
00:42:15,552 --> 00:42:18,708
This experience highlights why
AI and ML teams need unique
791
00:42:18,723 --> 00:42:22,597
behavioral commitments. While an
analytics team might thrive with
792
00:42:22,619 --> 00:42:26,203
a Strategy centered on rapid
iteration with stakeholders, ML
793
00:42:26,261 --> 00:42:29,664
teams often need extended
periods of technical exploration
794
00:42:30,008 --> 00:42:32,265
before stakeholder involvement
becomes valuable.
795
00:42:32,789 --> 00:42:35,687
The strategic behaviors that
create competitive advantage
796
00:42:36,187 --> 00:42:40,172
differ significantly. Successful
AI and ML strategies typically
797
00:42:40,219 --> 00:42:43,594
include specific behavioral
commitments in four key areas.
798
00:42:44,140 --> 00:42:45,844
First, experimentation cadence.
799
00:42:46,234 --> 00:42:49,905
How teams structure their
learning loops. One enterprise
800
00:42:49,985 --> 00:42:52,527
AI team I worked with committed
to running at least 20
801
00:42:52,647 --> 00:42:55,709
architecture experiments weekly
while documenting results in a
802
00:42:55,732 --> 00:42:58,772
standardized format. This
seemingly simple behavior
803
00:42:59,193 --> 00:43:02,615
created an invaluable knowledge
repository that accelerated
804
00:43:02,678 --> 00:43:04,959
their progress significantly
compared to competitors.
805
00:43:05,615 --> 00:43:09,178
Second, knowledge distribution
patterns, how insights flow
806
00:43:09,240 --> 00:43:12,272
between team members. A natural
language processing startup
807
00:43:12,553 --> 00:43:15,428
adopted a behavioral commitment
to pair programming for all
808
00:43:15,475 --> 00:43:18,615
model development work, despite
the apparent inefficiency.
809
00:43:19,564 --> 00:43:23,449
This strategic behavior resulted
in dramatically reduced
810
00:43:23,609 --> 00:43:27,191
knowledge silos and more robust
architecture decisions that
811
00:43:27,312 --> 00:43:28,375
competitors couldn't match.
812
00:43:29,297 --> 00:43:34,679
Third, failure tolerance
frameworks. How teams respond
813
00:43:35,062 --> 00:43:38,281
when approaches don't work. One
autonomous systems team
814
00:43:38,750 --> 00:43:41,672
committed to celebrating
valuable failures with formal
815
00:43:41,718 --> 00:43:44,875
recognition for experiments that
disproved promising hypotheses,
816
00:43:44,968 --> 00:43:46,297
saving future resources.
817
00:43:47,265 --> 00:43:49,904
This behavioral commitment
transformed how they approached
818
00:43:49,964 --> 00:43:53,005
risk and accelerated their
overall progress forth.
819
00:43:53,544 --> 00:43:57,122
Deployment bridges. How research
insights transition to
820
00:43:57,185 --> 00:43:58,044
production systems.
821
00:43:58,364 --> 00:44:02,403
A healthcare AI team implemented
a model shadowing period where
822
00:44:02,591 --> 00:44:06,528
new algorithms ran parallel to
existing systems for extended
823
00:44:06,575 --> 00:44:09,888
evaluation before taking
control. This strategic behavior
824
00:44:09,950 --> 00:44:13,091
built trust with clinical
partners and enabled more
825
00:44:13,122 --> 00:44:16,638
aggressive innovation than
competitors who faced resistance
826
00:44:16,685 --> 00:44:17,528
to implementation.
827
00:44:18,444 --> 00:44:21,387
These strategic behaviors
contrast sharply with those that
828
00:44:21,468 --> 00:44:24,809
work for analytics teams. Where
analytics teams might commit to
829
00:44:24,950 --> 00:44:28,934
business value in every sprint,
ML teams often need behavioral
830
00:44:28,997 --> 00:44:31,841
commitments like exploring at
least three novel approaches
831
00:44:31,895 --> 00:44:32,997
before optimization.
832
00:44:33,942 --> 00:44:37,380
Analytics teams can often commit
to fixed delivery dates, while
833
00:44:37,598 --> 00:44:41,114
ML teams need flexible
development cycles with rigorous
834
00:44:41,161 --> 00:44:41,942
evaluation gates.
835
00:44:42,801 --> 00:44:45,833
The contrast becomes even more
apparent in how these teams
836
00:44:46,255 --> 00:44:48,731
approach. Stakeholder
relationships. A financial
837
00:44:48,771 --> 00:44:52,096
services AI team, I advised,
struggled until they shifted
838
00:44:52,139 --> 00:44:55,201
from the analytics-inspired
behavior of demonstrating
839
00:44:55,280 --> 00:44:58,928
incremental progress to
stakeholders bi-weekly to
840
00:44:59,416 --> 00:45:03,120
educating stakeholders on
research processes and
841
00:45:03,239 --> 00:45:05,801
establishing quarterly
evaluation points.
842
00:45:07,407 --> 00:45:10,969
This strategic shift created the
space they needed for meaningful
843
00:45:11,008 --> 00:45:13,727
exploration while maintaining
organizational trust.
844
00:45:14,891 --> 00:45:17,297
Another critical difference
appears in technical debt
845
00:45:17,360 --> 00:45:17,813
management.
846
00:45:18,688 --> 00:45:22,219
Traditional analytics teams can
often defer maintenance work in
847
00:45:22,282 --> 00:45:26,094
favor of new features. For ML
teams, algorithm maintenance is
848
00:45:26,126 --> 00:45:29,560
existential. Models degrade as
the world changes. A retail
849
00:45:29,600 --> 00:45:33,264
recommendation engine team
committed to allocating 30% of
850
00:45:33,284 --> 00:45:36,608
resources to continuous
evaluation and retraining, which
851
00:45:36,666 --> 00:45:38,471
competitors viewed as
inefficient.
852
00:45:39,549 --> 00:45:42,416
This strategic behavior
ultimately proved decisive when
853
00:45:42,495 --> 00:45:45,776
market patterns shifted during
the pandemic, and their models
854
00:45:45,854 --> 00:45:49,276
adapted while competitors
failed. The distinction extends
855
00:45:49,277 --> 00:45:52,166
to talent development, too. A
computer vision team at a
856
00:45:52,198 --> 00:45:55,198
manufacturing company struggled
until they revised their
857
00:45:55,245 --> 00:45:57,541
Strategy to include a behavioral
commitment.
858
00:45:57,956 --> 00:46:01,759
Of dedicating 20% of senior
researchers' time to internal
859
00:46:01,779 --> 00:46:04,922
knowledge transfer. This
apparently costly behavior
860
00:46:05,023 --> 00:46:07,484
became their competitive
advantage as they could rapidly
861
00:46:07,547 --> 00:46:11,172
train new team members while
competitors fought over a
862
00:46:11,312 --> 00:46:14,945
limited pool of experienced
specialists. The research
863
00:46:15,007 --> 00:46:18,070
production tension requires
particularly careful strategic
864
00:46:18,132 --> 00:46:18,632
navigation.
865
00:46:19,132 --> 00:46:21,554
One autonomous vehicle company
committed to maintaining
866
00:46:21,664 --> 00:46:24,617
parallel research and production
implementations of key systems
867
00:46:24,956 --> 00:46:27,616
With explicit processes for
migrating innovations between
868
00:46:27,657 --> 00:46:31,098
them, this behavioral pattern
allowed them to simultaneously
869
00:46:31,176 --> 00:46:33,837
pursue cutting-edge research
while maintaining reliable
870
00:46:33,915 --> 00:46:36,962
production systems, a balance
many competitors failed to
871
00:46:36,977 --> 00:46:40,758
achieve. Even the approach to
failure requires different
872
00:46:40,938 --> 00:46:41,954
strategic behaviors.
873
00:46:42,860 --> 00:46:46,782
An NLP startup adopted a bounty
system for identifying failure
874
00:46:46,797 --> 00:46:50,297
modes in production models with
dedicated time allocations for
875
00:46:50,360 --> 00:46:54,422
addressing discoveries. This
strategic behavior created
876
00:46:55,008 --> 00:46:59,554
Resilient systems that
outperformed more academically
877
00:46:59,831 --> 00:47:03,718
advanced competitors, whose
models failed in unexpected
878
00:47:03,820 --> 00:47:04,835
real-world conditions.
879
00:47:05,398 --> 00:47:08,539
These examples demonstrate why
applying general data science
880
00:47:08,578 --> 00:47:12,749
strategies to AI and ML teams
frequently fails. The unique
881
00:47:12,781 --> 00:47:14,765
characteristics of machine
learning work, its
882
00:47:14,812 --> 00:47:17,937
exploration-heavy nature,
non-linear progress patterns,
883
00:47:17,968 --> 00:47:20,749
and complex deployment
challenges, require tailored
884
00:47:20,953 --> 00:47:24,093
strategic approaches focused on
specific behavioral commitments.
885
00:47:24,840 --> 00:47:26,922
The common Strategy mistake
leaders make.
886
00:47:27,502 --> 00:47:31,448
Behavioral patterns that drive
AI success highlight the
887
00:47:31,467 --> 00:47:33,967
critical difference between
planning and Strategy, a
888
00:47:34,006 --> 00:47:37,014
distinction most leaders miss
entirely. What if the reason
889
00:47:37,389 --> 00:47:41,139
most data science strategies
fail isn't about execution at
890
00:47:41,201 --> 00:47:44,858
all but stems from a fundamental
misunderstanding that happens
891
00:47:44,920 --> 00:47:46,920
the moment an executive makes
the request?
892
00:47:47,936 --> 00:47:51,545
Picture this scenario. A VP
calls you into their office and
893
00:47:51,608 --> 00:47:55,531
says, We need a data science
Strategy for our organization.
894
00:47:55,771 --> 00:47:57,853
Can you have something on my
desk by the end of the month?
895
00:47:59,775 --> 00:48:03,639
You nod confidently, but as you
walk away, a wave of uncertainty
896
00:48:03,717 --> 00:48:04,021
hits.
897
00:48:05,264 --> 00:48:08,342
What exactly are they asking
for? With limited guidance, most
898
00:48:08,381 --> 00:48:12,006
leaders default to creating what
they believe executives want to
899
00:48:12,146 --> 00:48:16,131
see. Detailed timelines,
technology selections, and
900
00:48:16,334 --> 00:48:17,287
project roadmaps.
901
00:48:18,334 --> 00:48:21,537
This scenario plays out
thousands of times across
902
00:48:22,136 --> 00:48:25,876
organizations worldwide, and it
triggers the most common and
903
00:48:25,896 --> 00:48:29,476
damaging mistake in data science
leadership, misinterpreting the
904
00:48:29,519 --> 00:48:32,917
request for Strategy as a
request for a comprehensive plan
905
00:48:32,918 --> 00:48:33,699
of activities.
906
00:48:34,660 --> 00:48:38,183
The distinction might seem
subtle, but the consequences are
907
00:48:38,199 --> 00:48:38,621
profound.
908
00:48:39,980 --> 00:48:43,855
When executives request a data
science Strategy, they typically
909
00:48:43,886 --> 00:48:47,183
expect a document that bears
little resemblance to what would
910
00:48:47,199 --> 00:48:51,204
actually help the team succeed.
They anticipate receiving an
911
00:48:51,224 --> 00:48:55,266
impressive slide deck filled
with timelines for implementing
912
00:48:55,309 --> 00:48:59,712
specific technologies, forecasts
of resource requirements, and
913
00:48:59,751 --> 00:49:01,657
promises of specific
deliverables.
914
00:49:02,259 --> 00:49:05,555
What they should receive instead
is a clear articulation of how
915
00:49:05,579 --> 00:49:08,259
the team will behave differently
from competitors to create
916
00:49:08,274 --> 00:49:11,337
sustainable advantage. I
witnessed this mistake firsthand
917
00:49:11,477 --> 00:49:14,180
at a major telecommunications
company where the newly
918
00:49:14,227 --> 00:49:18,009
appointed chief data officer
spent three months developing
919
00:49:18,055 --> 00:49:21,548
what he called a comprehensive
data science Strategy.
920
00:49:22,368 --> 00:49:25,769
The impressive 60-page document
detailed every project the team
921
00:49:25,851 --> 00:49:29,030
would undertake over the next
two years, the technologies they
922
00:49:29,046 --> 00:49:31,632
would implement, and the
projected ROI for each
923
00:49:31,687 --> 00:49:35,210
initiative. Leadership approved
it enthusiastically, and the
924
00:49:35,226 --> 00:49:37,929
team began execution
immediately. Six months later,
925
00:49:37,944 --> 00:49:39,757
the Strategy was effectively
abandoned.
926
00:49:40,616 --> 00:49:43,335
Market conditions had shifted,
executive priorities had
927
00:49:43,398 --> 00:49:46,413
changed, and several key
technologies mentioned in the
928
00:49:46,414 --> 00:49:50,918
document had been superseded. By
newer alternatives. The document
929
00:49:50,959 --> 00:49:54,043
provided no guidance on how to
adapt because it had focused
930
00:49:54,121 --> 00:49:57,406
entirely on what the team would
do, rather than how they would
931
00:49:57,469 --> 00:49:59,766
make decisions and behave to
create advantage.
932
00:50:00,513 --> 00:50:03,617
This contrasts sharply with a
mid-size insurance company whose
933
00:50:03,656 --> 00:50:06,180
data science leader took a
different approach. When asked
934
00:50:06,219 --> 00:50:10,086
for a Strategy, she delivered a
concise five-page document that
935
00:50:10,125 --> 00:50:12,562
barely mentioned specific
projects or technologies.
936
00:50:12,726 --> 00:50:16,562
Instead, it articulated clear
behavioral commitments, how they
937
00:50:16,594 --> 00:50:19,578
would evaluate investment
opportunities, their approach to
938
00:50:19,609 --> 00:50:22,875
balancing exploratory versus
exploitative work, and their
939
00:50:22,922 --> 00:50:25,953
decision criteria for pursuing
or abandoning initiatives.
940
00:50:27,219 --> 00:50:31,246
When market conditions shifted,
this team adapted their project
941
00:50:31,326 --> 00:50:34,531
portfolio while maintaining
consistent decision-making
942
00:50:34,589 --> 00:50:37,273
patterns that continued to
create advantage.
943
00:50:38,652 --> 00:50:41,574
The mistake stems from a
fundamental misconception of
944
00:50:41,613 --> 00:50:45,199
what constitutes Strategy. Most
data science leaders, especially
945
00:50:45,222 --> 00:50:48,621
those without formal Strategy
training, equate Strategy with
946
00:50:48,699 --> 00:50:51,964
detailed planning. They believe
that the more comprehensive and
947
00:50:52,011 --> 00:50:54,746
specific their plan, the more
strategic it appears.
948
00:50:55,074 --> 00:50:58,167
This leads to documents that
impress initially but provide
949
00:50:58,277 --> 00:51:01,138
minimal actual strategic
guidance. A strategic approach
950
00:51:01,179 --> 00:51:04,283
would instead focus on questions
like, what types of problems
951
00:51:04,302 --> 00:51:06,908
will we prioritize? How will we
decide between competing
952
00:51:06,924 --> 00:51:10,072
opportunities? What criteria
will guide our investment
953
00:51:10,088 --> 00:51:10,611
decisions?
954
00:51:11,666 --> 00:51:15,088
How frequently will we evaluate
results and pivot? How will we
955
00:51:15,119 --> 00:51:17,931
balance immediate needs against
long-term capability building?
956
00:51:19,010 --> 00:51:21,853
At an e-commerce company I
consulted with, the data science
957
00:51:21,854 --> 00:51:24,463
director initially presented a
Strategy that specified
958
00:51:24,525 --> 00:51:26,478
implementing a customer
segmentation model in Q1.
959
00:51:27,221 --> 00:51:30,264
Developing a recommendation
engine in Q2, and launching
960
00:51:30,424 --> 00:51:33,946
personalized marketing
automation in Q3. When asked how
961
00:51:33,989 --> 00:51:36,594
these activities would create
advantage relative to
962
00:51:36,610 --> 00:51:39,594
competitors who were pursuing
similar projects, he struggled
963
00:51:39,595 --> 00:51:40,032
to answer.
964
00:51:40,477 --> 00:51:44,078
The revised Strategy shifted
focus to behavioral commitments,
965
00:51:44,625 --> 00:51:47,407
running twice as many customer
experiments as competitors,
966
00:51:48,078 --> 00:51:52,078
making go-no-go decisions within
one week of results, and
967
00:51:52,125 --> 00:51:56,063
maintaining a consistent 30% of
resources dedicated to platform
968
00:51:56,157 --> 00:51:58,783
improvements, rather than
immediate applications.
969
00:51:59,364 --> 00:52:02,108
This Strategy proved resilient
through multiple business cycles
970
00:52:02,127 --> 00:52:04,889
and leadership changes because
it focused on how the team would
971
00:52:04,928 --> 00:52:09,475
behave rather than specific
deliverables. Two years later,
972
00:52:09,975 --> 00:52:12,373
not a single project from the
original plan remained
973
00:52:12,436 --> 00:52:15,905
unchanged, but the behavioral
patterns continued to generate
974
00:52:15,967 --> 00:52:16,998
competitive advantage.
975
00:52:17,155 --> 00:52:21,108
The mistake becomes increasingly
damaging as organizations grow
976
00:52:21,202 --> 00:52:24,418
and contexts evolve. A small
team might temporarily succeed
977
00:52:24,498 --> 00:52:27,320
with a project-focused approach
due to tight communication and
978
00:52:27,382 --> 00:52:30,804
shared implicit understanding.
But as teams expand, the absence
979
00:52:30,805 --> 00:52:33,206
of clear behavioral commitments
leads to inconsistent
980
00:52:33,230 --> 00:52:36,230
decision-making, resource
allocation conflicts, and
981
00:52:36,308 --> 00:52:37,074
strategic drift.
982
00:52:38,034 --> 00:52:41,878
A global financial services firm
experienced this firsthand as
983
00:52:41,909 --> 00:52:44,784
their data science function grew
from 15 to over 100
984
00:52:44,800 --> 00:52:48,378
professionals in 18 months. The
original Strategy document
985
00:52:48,456 --> 00:52:51,066
focused on specific analytical
models and technology
986
00:52:51,128 --> 00:52:51,847
implementations.
987
00:52:52,213 --> 00:52:56,117
Provided no guidance on how to
prioritize competing requests or
988
00:52:56,156 --> 00:52:59,340
balance innovation against
reliability. By the time they
989
00:52:59,379 --> 00:53:02,360
realized the issue, they had
dozens of disconnected
990
00:53:02,445 --> 00:53:05,789
initiatives with no coherent
pattern of behavior, resulting
991
00:53:05,805 --> 00:53:08,430
in organizational frustration
and wasted investment.
992
00:53:09,508 --> 00:53:11,758
Reframing the request for a data
science Strategy can
993
00:53:11,789 --> 00:53:14,680
fundamentally change outcomes.
When an executive asks for a
994
00:53:14,681 --> 00:53:17,664
Strategy, skilled leaders
clarify whether they're seeking
995
00:53:17,665 --> 00:53:20,799
a plan of activities or a
definition of how the team will
996
00:53:20,839 --> 00:53:24,581
behave to create advantage. This
simple clarification often
997
00:53:24,643 --> 00:53:27,725
surprises executives who haven't
considered the distinction,
998
00:53:28,069 --> 00:53:30,264
opening the door for a more
meaningful strategic
999
00:53:30,327 --> 00:53:30,866
conversation.
1000
00:53:31,811 --> 00:53:34,155
A healthcare analytics leader
handled this effectively when
1001
00:53:34,210 --> 00:53:37,218
asked for a Strategy by the CFO.
Instead of immediately producing
1002
00:53:37,219 --> 00:53:39,796
a document, she scheduled a
discussion to understand what
1003
00:53:39,843 --> 00:53:42,483
competitive challenges the
organization faced and how data
1004
00:53:42,514 --> 00:53:44,358
science could contribute to
addressing them.
1005
00:53:45,281 --> 00:53:48,164
This conversation revealed that
the CFO was primarily concerned
1006
00:53:48,203 --> 00:53:50,967
with improving operational
efficiency rather than
1007
00:53:51,026 --> 00:53:54,229
developing cutting-edge
analytical capabilities. Armed
1008
00:53:54,291 --> 00:53:58,252
with this insight, she developed
a Strategy focused on behavioral
1009
00:53:58,330 --> 00:54:00,994
commitments around rapid
implementation of proven
1010
00:54:01,057 --> 00:54:04,174
analytical techniques rather
than exploration of novel
1011
00:54:04,221 --> 00:54:04,737
approaches.
1012
00:54:05,643 --> 00:54:08,580
A pattern of behavior
specifically designed to address
1013
00:54:08,627 --> 00:54:12,705
the organization's actual
competitive needs. This approach
1014
00:54:13,034 --> 00:54:17,544
shifts the strategic focus from
what we will build to how we
1015
00:54:17,624 --> 00:54:18,585
will behave to win.
1016
00:54:19,167 --> 00:54:21,788
It transforms the conversation
from project selection to
1017
00:54:21,847 --> 00:54:25,948
capability building. Rather than
committing to specific outputs
1018
00:54:26,034 --> 00:54:30,112
that may become irrelevant, it
commits to decision patterns and
1019
00:54:30,113 --> 00:54:33,362
behaviors that remain valuable
regardless of how specific
1020
00:54:33,425 --> 00:54:34,253
projects evolve.
1021
00:54:35,768 --> 00:54:38,987
The most effective data science
strategies I've seen have been
1022
00:54:39,503 --> 00:54:42,222
remarkably brief in terms of
specific project commitments,
1023
00:54:42,268 --> 00:54:44,866
but crystal clear about
behavioral patterns. One
1024
00:54:44,886 --> 00:54:47,592
particularly successful example
came from a manufacturing
1025
00:54:47,633 --> 00:54:51,223
company whose entire data
science Strategy could be
1026
00:54:51,844 --> 00:54:54,090
summarized in three behavioral
commitments.
1027
00:54:54,732 --> 00:54:57,814
They would validate all models
with frontline operators before
1028
00:54:57,836 --> 00:55:01,158
deployment, maintain a
consistent four-week cycle from
1029
00:55:01,260 --> 00:55:05,725
concept to initial
implementation, and dedicate 25%
1030
00:55:05,803 --> 00:55:08,904
of capacity to improving
existing solutions rather than
1031
00:55:08,982 --> 00:55:13,123
creating new ones. These simple
principles guided hundreds of
1032
00:55:13,154 --> 00:55:16,326
decisions across dozens of
projects, creating a consistent
1033
00:55:16,420 --> 00:55:19,076
pattern that delivered
measurable competitive
1034
00:55:19,092 --> 00:55:19,592
advantage.
1035
00:55:21,279 --> 00:55:24,869
Strategic thinking for small
data science teams. Those simple
1036
00:55:24,929 --> 00:55:28,329
behavioral patterns created
measurable advantage for large
1037
00:55:28,368 --> 00:55:32,633
organizations. But what about
the small data science team of
1038
00:55:32,711 --> 00:55:35,915
just three people who told me
they were too small to need a
1039
00:55:35,930 --> 00:55:36,368
Strategy?
1040
00:55:37,532 --> 00:55:40,946
They later discovered something
surprising. Strategic thinking
1041
00:55:41,274 --> 00:55:45,977
becomes more critical as team
size decreases, not less. Small
1042
00:55:46,008 --> 00:55:48,930
data science teams face
constraints that make strategic
1043
00:55:48,993 --> 00:55:51,790
thinking seem like a luxury.
When you're a team of two to
1044
00:55:51,821 --> 00:55:54,987
five people. You're constantly
juggling immediate deliverables
1045
00:55:55,026 --> 00:55:56,207
while wearing multiple hats.
1046
00:55:56,709 --> 00:55:58,990
One day you're building models,
the next you're presenting to
1047
00:55:59,010 --> 00:56:02,112
executives, and the day after,
you're troubleshooting
1048
00:56:02,197 --> 00:56:05,213
infrastructure issues. The
pressure to deliver quick wins
1049
00:56:05,260 --> 00:56:08,604
is relentless, with stakeholders
expecting results despite your
1050
00:56:08,605 --> 00:56:12,260
limited resources. The typical
small team operates in perpetual
1051
00:56:12,338 --> 00:56:15,010
reactive mode. A marketing
request comes in Monday,
1052
00:56:15,088 --> 00:56:16,822
followed by a finance priority
on Tuesday.
1053
00:56:17,229 --> 00:56:19,494
Then the CEO sends an urgent
request Wednesday that
1054
00:56:19,526 --> 00:56:23,169
supersedes everything else. With
no bandwidth buffer, Each new
1055
00:56:23,209 --> 00:56:25,992
request creates a ripple effect
that disrupts previous
1056
00:56:26,031 --> 00:56:28,756
commitments. This constant
context switching severely
1057
00:56:28,814 --> 00:56:32,181
limits productivity and makes
focused work nearly impossible.
1058
00:56:32,681 --> 00:56:35,142
When I suggested strategic
thinking to a four-person
1059
00:56:35,221 --> 00:56:38,400
analytics team at a mid-sized
retailer, their leader laughed.
1060
00:56:38,822 --> 00:56:41,650
We barely have time to finish
our dashboards, much less
1061
00:56:41,713 --> 00:56:44,806
develop a formal Strategy
document. His perspective made
1062
00:56:44,822 --> 00:56:48,056
perfect sense. Formal Strategy
processes can be time-consuming.
1063
00:56:48,416 --> 00:56:50,791
But this fundamentally
misunderstands what Strategy
1064
00:56:50,916 --> 00:56:54,141
really entails for small teams.
The paradox is that these very
1065
00:56:54,182 --> 00:56:57,985
constraints make strategic
thinking not a luxury, but an
1066
00:56:58,024 --> 00:56:58,868
absolute necessity.
1067
00:56:59,387 --> 00:57:03,954
With severely limited resources,
small teams simply cannot afford
1068
00:57:04,235 --> 00:57:07,774
to waste time on initiatives
that don't create meaningful
1069
00:57:07,837 --> 00:57:12,055
competitive advantage. They lack
the buffer that larger teams
1070
00:57:12,102 --> 00:57:15,587
have to absorb misdirected
efforts or failed experiments.
1071
00:57:15,868 --> 00:57:19,040
Every hour spent on the wrong
priority is disproportionately
1072
00:57:19,133 --> 00:57:19,493
costly.
1073
00:57:20,784 --> 00:57:23,928
A strategic approach for small
teams doesn't require elaborate
1074
00:57:23,947 --> 00:57:26,729
documentation or formal
processes. Instead, it needs
1075
00:57:26,811 --> 00:57:29,674
only a clear understanding of
how the team will behave to
1076
00:57:29,713 --> 00:57:32,838
create competitive advantage
documented in the simplest
1077
00:57:32,940 --> 00:57:36,502
possible format. The retail team
eventually created a single-page
1078
00:57:36,580 --> 00:57:39,822
document with three behavioral
commitments that transformed
1079
00:57:39,838 --> 00:57:40,619
their effectiveness.
1080
00:57:41,166 --> 00:57:43,994
This lightweight approach
emphasized clear decision
1081
00:57:44,041 --> 00:57:46,447
criteria rather than
comprehensive planning. The
1082
00:57:46,494 --> 00:57:50,333
retail team committed to three
behaviors. They would only build
1083
00:57:50,454 --> 00:57:54,235
analytics that directly impacted
customer retention metrics. They
1084
00:57:54,278 --> 00:57:57,477
would deliver initial results
within two weeks of any project
1085
00:57:57,540 --> 00:58:00,524
initiation, and they would
allocate Friday afternoons to
1086
00:58:00,563 --> 00:58:02,243
improving their data
infrastructure.
1087
00:58:03,024 --> 00:58:06,134
These simple guardrails allowed
them to quickly evaluate
1088
00:58:06,243 --> 00:58:09,274
incoming requests without
lengthy meetings or analysis
1089
00:58:09,305 --> 00:58:13,493
paralysis. The startup FinTech
team I worked with implemented
1090
00:58:13,494 --> 00:58:17,261
what they called strategic
triage. A five-minute evaluation
1091
00:58:17,302 --> 00:58:19,404
of any new request against three
questions.
1092
00:58:20,384 --> 00:58:23,829
Does this directly support our
competitive differentiation in
1093
00:58:23,927 --> 00:58:25,111
automated loan processing?
1094
00:58:26,290 --> 00:58:29,056
Can we complete a valuable
version within our two-week work
1095
00:58:29,134 --> 00:58:32,431
cycle? Will the solution scale
beyond the immediate use case?
1096
00:58:33,150 --> 00:58:35,884
Any request failing these tests
was either declined or
1097
00:58:35,947 --> 00:58:39,603
renegotiated. Small teams can
implement strategic behavioral
1098
00:58:39,665 --> 00:58:42,822
patterns without bureaucracy by
focusing on clear decision
1099
00:58:42,884 --> 00:58:45,976
criteria, shared
knowledge-building habits, and
1100
00:58:46,036 --> 00:58:47,177
simplified communication.
1101
00:58:47,617 --> 00:58:51,119
The three-person data science
team at a property management
1102
00:58:51,158 --> 00:58:54,682
company created a simple
collaboration ritual, a
1103
00:58:55,260 --> 00:58:58,721
15-minute daily stand-up focused
not on status updates but on
1104
00:58:58,760 --> 00:59:02,002
decision alignment. Each team
member would share one key
1105
00:59:02,033 --> 00:59:05,424
decision they were facing and
get rapid input from colleagues.
1106
00:59:06,080 --> 00:59:08,846
This ensured consistent
strategic behavior across their
1107
00:59:08,877 --> 00:59:09,127
work.
1108
00:59:10,174 --> 00:59:13,127
Another effective pattern comes
from a five-person healthcare
1109
00:59:13,158 --> 00:59:17,390
analytics team who established
Strategy anchors, physical
1110
00:59:17,431 --> 00:59:20,552
reminders of their core
behavioral commitments. They
1111
00:59:20,634 --> 00:59:23,173
posted three questions
prominently in their workspace.
1112
00:59:23,916 --> 00:59:27,220
Are we prioritizing clinical
impact over technical elegance?
1113
00:59:28,400 --> 00:59:31,080
Are we creating solutions nurses
can use without training?
1114
00:59:32,142 --> 00:59:35,173
Are we reducing, not adding, to
clinician workload?
1115
00:59:36,111 --> 00:59:39,408
These visible reminders helped
maintain consistent behavior
1116
00:59:39,814 --> 00:59:43,314
without formal processes. What's
particularly powerful about
1117
00:59:43,361 --> 00:59:47,206
these approaches is that they
enable small teams to punch far
1118
00:59:47,267 --> 00:59:48,269
above their weight class.
1119
00:59:49,171 --> 00:59:52,159
The three-person insurance
analytics team I consulted with
1120
00:59:52,619 --> 00:59:55,361
competed directly against
competitors with 30-plus data
1121
00:59:55,402 --> 00:59:59,103
scientists. By focusing all
their efforts on a specific
1122
00:59:59,346 --> 01:00:02,869
customer segment underserved by
larger players and committing to
1123
01:00:03,650 --> 01:00:06,455
weekly customer interviews, they
created specialized solutions
1124
01:00:06,494 --> 01:00:07,650
with remarkable market fit.
1125
01:00:08,494 --> 01:00:11,150
Their behavioral commitment to
deep customer understanding
1126
01:00:11,244 --> 01:00:14,541
created leverage that larger
teams spread across many
1127
01:00:14,619 --> 01:00:18,010
initiatives couldn't match.
Similarly, a two-person data
1128
01:00:18,056 --> 01:00:21,213
science team at a regional
manufacturing company created
1129
01:00:21,371 --> 01:00:24,635
disproportionate impact by
focusing exclusively on
1130
01:00:24,713 --> 01:00:25,873
production line efficiency.
1131
01:00:26,956 --> 01:00:29,756
Rather than attempting
comprehensive coverage of all
1132
01:00:29,819 --> 01:00:33,225
potential analytics use cases,
they identified the single
1133
01:00:33,280 --> 01:00:35,983
highest leverage point in the
business and directed all their
1134
01:00:36,045 --> 01:00:40,217
work toward it. Their strategic
commitment to depth over breadth
1135
01:00:40,530 --> 01:00:43,936
allowed them to build solutions
with profound business impact
1136
01:00:43,937 --> 01:00:45,311
despite their tiny team size.
1137
01:00:45,851 --> 01:00:47,994
Small teams should focus their
strategic thinking on
1138
01:00:48,033 --> 01:00:50,576
identifying these leverage
points rather than attempting
1139
01:00:50,634 --> 01:00:54,400
comprehensive coverage. The
medical device startup I advised
1140
01:00:54,783 --> 01:00:58,166
succeeded by focusing
exclusively on enhancing their
1141
01:00:58,283 --> 01:01:01,767
sales team's effectiveness,
ignoring potentially valuable
1142
01:01:01,830 --> 01:01:04,783
but secondary applications in
operations and finance.
1143
01:01:05,752 --> 01:01:09,220
Their strategic behavior pattern
included a weekly leverage test
1144
01:01:09,408 --> 01:01:12,111
that evaluated whether any
current work was drifting away
1145
01:01:12,158 --> 01:01:15,732
from their core focus area. One
of the most Challenging aspects
1146
01:01:15,752 --> 01:01:19,415
for small teams is maintaining
strategic consistency despite
1147
01:01:19,458 --> 01:01:20,739
frequent priority shifts.
1148
01:01:21,700 --> 01:01:25,122
The four-person analytics team
at a software company addressed
1149
01:01:25,137 --> 01:01:28,684
this by creating a Strategy
contract with leadership. This
1150
01:01:28,723 --> 01:01:31,387
simple document outlined their
behavioral commitments and
1151
01:01:31,434 --> 01:01:35,043
clarified that any priority
shift requiring deviation from
1152
01:01:35,106 --> 01:01:37,872
these commitments would trigger
a formal review.
1153
01:01:38,653 --> 01:01:42,215
This moved them from passive
recipients of changing demands
1154
01:01:42,262 --> 01:01:45,392
to active partners in strategic
decisions. Another effective
1155
01:01:45,412 --> 01:01:48,395
technique comes from a
three-person municipal
1156
01:01:48,475 --> 01:01:51,237
government data team who
established priority buffers,
1157
01:01:52,096 --> 01:01:55,839
deliberately keeping 30% of
their capacity unallocated to
1158
01:01:55,885 --> 01:01:58,542
absorb inevitable urgent
requests without derailing
1159
01:01:58,628 --> 01:01:59,487
strategic work.
1160
01:02:00,729 --> 01:02:04,104
This buffer wasn't idle time,
but rather protected capacity
1161
01:02:04,464 --> 01:02:07,354
that allowed them to maintain
their core behavioral
1162
01:02:07,401 --> 01:02:10,944
commitments even when urgent
requests arrived. The two-person
1163
01:02:11,004 --> 01:02:14,066
team at an education technology
startup maintained consistency
1164
01:02:14,187 --> 01:02:16,549
through what they called
strategic minimums,
1165
01:02:17,068 --> 01:02:19,791
non-negotiable time allocations
for their highest leverage
1166
01:02:19,853 --> 01:02:20,416
activities.
1167
01:02:21,135 --> 01:02:24,838
They committed to spending at
least 25% of their time directly
1168
01:02:24,900 --> 01:02:27,674
observing how teachers used
their analytics products,
1169
01:02:27,877 --> 01:02:31,908
regardless of other demands.
This minimum viable strategic
1170
01:02:31,970 --> 01:02:35,674
behavior ensured they maintained
their competitive advantage in
1171
01:02:35,892 --> 01:02:40,043
user-centered design, despite
constant pressure to build. New
1172
01:02:40,183 --> 01:02:40,724
features.
1173
01:02:41,745 --> 01:02:45,108
Behaviors that win, building
your Strategy. Strategic
1174
01:02:45,190 --> 01:02:48,510
minimums establish a foundation,
but they don't tell you which
1175
01:02:48,573 --> 01:02:50,495
behaviors will actually win in
your market.
1176
01:02:51,596 --> 01:02:54,557
The most successful data science
teams I've worked with don't
1177
01:02:54,596 --> 01:02:55,815
just protect their time.
1178
01:02:56,792 --> 01:02:59,917
They deliberately engineer
behavioral patterns across four
1179
01:02:59,964 --> 01:03:02,839
domains that their competitors
consistently overlook.
1180
01:03:04,155 --> 01:03:06,716
These patterns aren't universal
templates, they're precision
1181
01:03:06,776 --> 01:03:09,778
instruments calibrated to your
specific competitive landscape.
1182
01:03:10,235 --> 01:03:13,497
Understanding which specific
behaviors to prioritize requires
1183
01:03:13,498 --> 01:03:17,161
a clear-eyed assessment of your
competitive context. What makes
1184
01:03:17,162 --> 01:03:21,559
a behavior strategic isn't that
it's good practice, it's that it
1185
01:03:21,638 --> 01:03:25,325
creates disproportionate
advantage in your particular
1186
01:03:25,356 --> 01:03:25,794
situation.
1187
01:03:26,341 --> 01:03:29,778
For example, a behavior like
meeting with stakeholders weekly
1188
01:03:30,278 --> 01:03:33,964
might be necessary hygiene in
one context, but a genuine
1189
01:03:34,044 --> 01:03:38,046
competitive advantage in another
organization where competitors
1190
01:03:38,448 --> 01:03:41,890
maintain distant relationships
with business partners.
1191
01:03:42,851 --> 01:03:45,312
The most effective data science
strategies I've encountered
1192
01:03:45,476 --> 01:03:48,718
organize behaviors into four
fundamental categories that
1193
01:03:48,741 --> 01:03:52,077
together form a comprehensive
approach. The first category
1194
01:03:52,187 --> 01:03:55,827
focuses on knowledge
acquisition, how your team
1195
01:03:56,140 --> 01:03:59,937
learns, shares information, and
builds institutional memory. The
1196
01:03:59,968 --> 01:04:03,087
second centers on decision
making. The processes, criteria,
1197
01:04:03,488 --> 01:04:05,569
and cadence of choices your team
makes.
1198
01:04:05,967 --> 01:04:10,651
The third addresses stakeholder
interaction, how you engage with
1199
01:04:10,768 --> 01:04:13,948
partners, users, and leadership.
The fourth encompasses your
1200
01:04:14,026 --> 01:04:17,791
technical approach, the methods,
tools, and standards that define
1201
01:04:18,104 --> 01:04:21,432
your work. Let's examine
specific winning behaviors
1202
01:04:21,526 --> 01:04:24,807
within each category. For
knowledge acquisition, a
1203
01:04:24,838 --> 01:04:28,291
consumer packaged goods company
I worked with committed to
1204
01:04:28,307 --> 01:04:31,120
spending 10% of their time
living with the data.
1205
01:04:32,123 --> 01:04:35,586
Directly examining raw data
without intermediary dashboards.
1206
01:04:36,488 --> 01:04:39,430
This behavior uncovered subtle
patterns their competitors
1207
01:04:39,691 --> 01:04:43,215
missed. A financial services
firm instituted mandatory
1208
01:04:43,332 --> 01:04:47,059
cross-pollination sessions where
data scientists regularly
1209
01:04:47,137 --> 01:04:51,121
rotated between product teams,
preventing knowledge silos that
1210
01:04:51,199 --> 01:04:52,699
plagued their industry peers.
1211
01:04:53,847 --> 01:04:56,810
For decision-making behaviors, a
retail analytics team
1212
01:04:56,929 --> 01:05:00,093
established a kill criteria
framework where projects were
1213
01:05:00,112 --> 01:05:03,394
evaluated against predetermined
failure conditions every two
1214
01:05:03,417 --> 01:05:03,714
weeks.
1215
01:05:04,714 --> 01:05:07,722
This prevented the resource
drain of prolonged unsuccessful
1216
01:05:07,784 --> 01:05:10,456
initiatives that their
competitors experienced. A
1217
01:05:10,550 --> 01:05:13,972
healthcare analytics
organization implemented what
1218
01:05:13,973 --> 01:05:17,191
they called parallel paths,
always maintaining at least two
1219
01:05:17,206 --> 01:05:20,175
competing approaches to
significant problems until clear
1220
01:05:20,237 --> 01:05:23,552
superiority emerged. This
prevented premature commitment
1221
01:05:23,553 --> 01:05:24,833
to suboptimal solutions.
1222
01:05:25,534 --> 01:05:29,118
In stakeholder interaction, a
manufacturing analytics team
1223
01:05:29,200 --> 01:05:33,059
practiced embedded rotation,
where data scientists spent one
1224
01:05:33,098 --> 01:05:36,067
week per quarter working
directly alongside factory
1225
01:05:36,083 --> 01:05:39,833
personnel. This created
intuitive understanding of
1226
01:05:39,895 --> 01:05:43,255
operational realities that
competitors with centralized
1227
01:05:43,270 --> 01:05:43,958
teams lacked.
1228
01:05:44,708 --> 01:05:48,317
A software company implemented
premortem workshops with
1229
01:05:48,395 --> 01:05:51,700
stakeholders before starting
projects. Imagining potential
1230
01:05:51,760 --> 01:05:55,265
failures, and building shared
risk ownership that competitive
1231
01:05:55,284 --> 01:05:58,749
teams struggle to establish. For
technical approach, a
1232
01:05:58,765 --> 01:06:01,507
telecommunications data science
team committed to maintaining
1233
01:06:01,546 --> 01:06:05,874
what they called model twins,
simpler, interpretable models
1234
01:06:06,077 --> 01:06:07,491
alongside more complex ones.
1235
01:06:08,476 --> 01:06:10,913
This balance between
explainability and performance
1236
01:06:11,241 --> 01:06:14,429
created trust with leadership
that competitors couldn't match.
1237
01:06:14,616 --> 01:06:18,288
A government agency analytics
team standardized on specific
1238
01:06:18,382 --> 01:06:21,551
modeling approaches within
domains, rather than chasing the
1239
01:06:21,572 --> 01:06:25,116
latest algorithms, creating
consistency that outperformed
1240
01:06:25,155 --> 01:06:28,479
competitors using more advanced
but less reliable techniques.
1241
01:06:29,358 --> 01:06:32,444
The specific competitive
advantage created varies
1242
01:06:32,522 --> 01:06:35,803
dramatically by context. A
behavior like conducting weekly
1243
01:06:35,905 --> 01:06:38,991
user research might create
massive advantage in a
1244
01:06:39,006 --> 01:06:42,069
consumer-facing digital product
company where competitors
1245
01:06:42,147 --> 01:06:45,975
prioritize technical innovation
over user feedback. That same
1246
01:06:46,022 --> 01:06:48,241
behavior might create minimal
advantage.
1247
01:06:48,431 --> 01:06:51,692
In industrial analytics where
domain expertise and system
1248
01:06:51,751 --> 01:06:55,811
reliability matter more than
user experience. To assess which
1249
01:06:55,913 --> 01:06:58,292
behaviors will create
competitive advantage in your
1250
01:06:58,331 --> 01:07:01,354
specific situation, start by
identifying your organization's
1251
01:07:01,456 --> 01:07:04,034
strategic priorities and
competitive landscape.
1252
01:07:04,956 --> 01:07:08,518
If your organization competes on
innovation speed, behaviors,
1253
01:07:09,050 --> 01:07:11,800
emphasizing rapid
experimentation, and lightweight
1254
01:07:11,893 --> 01:07:15,081
implementation will create
advantage. If it competes on
1255
01:07:15,143 --> 01:07:18,428
precision and reliability
Behaviors emphasizing thorough
1256
01:07:18,449 --> 01:07:21,090
validation and systematic
documentation will matter more.
1257
01:07:21,672 --> 01:07:24,414
Next, honestly evaluate your
competitors' behavioral
1258
01:07:24,473 --> 01:07:27,258
patterns. The greatest advantage
comes from strategic
1259
01:07:27,321 --> 01:07:30,938
differentiation, deliberately
choosing behaviors that contrast
1260
01:07:31,000 --> 01:07:32,102
with competitive norms.
1261
01:07:32,641 --> 01:07:35,399
If your competitors maintain
strict separation between data
1262
01:07:35,461 --> 01:07:38,883
scientists and business users,
behavior like co-development
1263
01:07:38,930 --> 01:07:42,611
with stakeholders might create
disproportionate advantage. If
1264
01:07:42,691 --> 01:07:45,895
they over-index on technical
sophistication at the expense of
1265
01:07:45,914 --> 01:07:49,176
implementation speed, a behavior
like deployment within two weeks
1266
01:07:49,177 --> 01:07:51,063
of approval might create more
value.
1267
01:07:51,938 --> 01:07:55,242
Document these behaviors in a
simple, actionable Strategy
1268
01:07:55,321 --> 01:07:58,453
statement that team members can
readily understand and apply.
1269
01:07:59,125 --> 01:08:02,328
Effective Strategy statements
avoid vague aspirations like
1270
01:08:02,516 --> 01:08:05,516
become data-driven in favor of
specific behavioral commitments.
1271
01:08:06,172 --> 01:08:09,141
A transportation analytics team
I worked with documented their
1272
01:08:09,235 --> 01:08:12,920
Strategy in a single page with
statements like We will maintain
1273
01:08:13,100 --> 01:08:15,963
no more than three active
projects per data scientist.
1274
01:08:17,025 --> 01:08:20,049
We will deploy models only after
they've been shadowed in
1275
01:08:20,068 --> 01:08:21,189
production for two weeks.
1276
01:08:22,088 --> 01:08:25,533
And we will dedicate every
Friday afternoon to improving
1277
01:08:25,611 --> 01:08:27,572
our collective knowledge through
teaching sessions.
1278
01:08:28,431 --> 01:08:31,213
The strongest Strategy
statements include not just what
1279
01:08:31,244 --> 01:08:34,822
you will do, but what you won't
do. A retail analytics team
1280
01:08:35,541 --> 01:08:40,650
explicitly committed to refusing
requests for one-off analysis
1281
01:08:40,713 --> 01:08:43,496
without... Clear connection to
customer retention. This
1282
01:08:43,576 --> 01:08:46,394
clarified priorities and
prevented resource dispersion
1283
01:08:46,894 --> 01:08:48,136
that competitors experienced.
1284
01:08:48,597 --> 01:08:51,215
Test your selected behaviors
against the three requirements
1285
01:08:51,216 --> 01:08:54,355
we discussed earlier. For
consistency, ask whether these
1286
01:08:54,394 --> 01:08:57,816
behaviors can be maintained
through market changes and
1287
01:08:57,925 --> 01:09:01,425
leadership transitions. For
coherence, verify that the
1288
01:09:01,426 --> 01:09:04,504
behaviors complement rather than
contradict each other. For
1289
01:09:04,535 --> 01:09:08,563
alignment, confirm that these
behaviors directly support your
1290
01:09:08,623 --> 01:09:10,804
organization's broader
competitive Strategy.
1291
01:09:11,185 --> 01:09:14,187
A technology company initially
committed to both rapid
1292
01:09:14,269 --> 01:09:18,269
prototyping and comprehensive
testing before discovering these
1293
01:09:18,316 --> 01:09:21,793
behaviors created internal
conflict. They refined their
1294
01:09:21,816 --> 01:09:25,472
approach to focus on targeted
testing of critical components,
1295
01:09:25,722 --> 01:09:27,847
which maintained quality while
enabling speed.
1296
01:09:28,644 --> 01:09:32,050
A healthcare analytics team
committed to behaviors optimized
1297
01:09:32,082 --> 01:09:34,832
for innovative discovery only to
realize their organization
1298
01:09:34,910 --> 01:09:37,695
competed primarily on
operational reliability. By
1299
01:09:37,795 --> 01:09:41,438
realigning their behaviors with
this reality, they created
1300
01:09:41,479 --> 01:09:44,964
significantly more value. The
most powerful test comes from
1301
01:09:45,260 --> 01:09:49,050
asking, if our competitors
adopted these exact same
1302
01:09:49,065 --> 01:09:51,206
behaviors, would we still have
an advantage?
1303
01:09:52,675 --> 01:09:55,138
If the answer is no, your
behaviors aren't strategically
1304
01:09:55,199 --> 01:09:58,441
differentiated enough. If yes,
you've identified genuinely
1305
01:09:58,499 --> 01:09:59,601
strategic commitments.
1306
01:10:00,562 --> 01:10:04,667
The patterns that consistently
lead to success aren't universal
1307
01:10:04,706 --> 01:10:07,870
best practices. Their behaviors
specifically match to your
1308
01:10:07,910 --> 01:10:11,253
competitive context. The most
successful data science teams
1309
01:10:11,347 --> 01:10:14,222
commit to patterns in knowledge
acquisition, decision-making,
1310
01:10:14,722 --> 01:10:17,863
stakeholder interaction, and
technical approach that create
1311
01:10:17,894 --> 01:10:19,816
advantage in their specific
situation.
1312
01:10:20,731 --> 01:10:23,875
Each organization must develop
its own unique combination based
1313
01:10:23,894 --> 01:10:26,619
on honest assessment of
organizational priorities and
1314
01:10:26,658 --> 01:10:29,978
competitive landscape. Testing
your Strategy, plan or true
1315
01:10:30,017 --> 01:10:30,400
Strategy.
1316
01:10:31,260 --> 01:10:33,963
Think your data science team has
a solid Strategy? Most
1317
01:10:34,002 --> 01:10:37,471
organizations confidently say
yes until they apply this simple
1318
01:10:37,502 --> 01:10:39,892
test that reveals they've
actually created nothing more
1319
01:10:39,924 --> 01:10:43,689
than a sophisticated plan. What
separates true strategies from
1320
01:10:43,752 --> 01:10:46,783
well-disguised task lists is a
specific element that's missing
1321
01:10:46,830 --> 01:10:48,611
in over 80% of Strategy
documents.
1322
01:10:49,191 --> 01:10:51,913
After years of reviewing data
science Strategy documents
1323
01:10:51,954 --> 01:10:55,298
across dozens of organizations,
I've developed a straightforward
1324
01:10:55,337 --> 01:10:57,958
test that can instantly
determine whether you've created
1325
01:10:57,959 --> 01:11:02,201
a genuine Strategy or merely an
elaborate plan disguised as one.
1326
01:11:03,161 --> 01:11:05,904
This test has proven remarkably
effective regardless of team
1327
01:11:05,982 --> 01:11:09,107
size or industry context. The
challenge with evaluating your
1328
01:11:09,185 --> 01:11:10,638
own Strategy is objectivity.
1329
01:11:11,513 --> 01:11:15,029
When we invest weeks or months
creating what we believe is a
1330
01:11:15,076 --> 01:11:18,513
strategic document, we develop
blind spots, we become attached.
1331
01:11:18,703 --> 01:11:22,648
To our creation and interpret
ambiguity in favorable ways.
1332
01:11:22,886 --> 01:11:26,190
This is why external Strategy
consultants exist. They provide
1333
01:11:26,210 --> 01:11:29,530
the objective perspective we
often lack, but you don't need
1334
01:11:29,554 --> 01:11:32,194
an expensive consultant to
evaluate your Strategy.
1335
01:11:32,913 --> 01:11:36,194
Instead, start with this
fundamental question. Does your
1336
01:11:36,241 --> 01:11:38,944
Strategy document clearly
articulate how your team will
1337
01:11:38,976 --> 01:11:41,788
behave differently from
competitors or alternative
1338
01:11:41,804 --> 01:11:46,194
approaches to create a specific
advantage? This seemingly simple
1339
01:11:46,257 --> 01:11:48,444
question cuts to the heart of
strategic thinking.
1340
01:11:49,319 --> 01:11:53,684
If your document primarily lists
what you'll do rather than how
1341
01:11:53,782 --> 01:11:56,926
you'll behave to win, it's
likely not a Strategy at all.
1342
01:11:57,168 --> 01:12:00,250
The test forces you to confront
whether you've made genuine
1343
01:12:00,289 --> 01:12:02,852
behavioral commitments that
create differentiation and
1344
01:12:02,875 --> 01:12:06,172
advantage. Let me walk you
through how this test works in
1345
01:12:06,188 --> 01:12:06,594
practice.
1346
01:12:07,500 --> 01:12:10,875
Recently, I evaluated a Strategy
document from a mid-size
1347
01:12:10,922 --> 01:12:13,985
insurance company's data science
team. Their document initially
1348
01:12:14,016 --> 01:12:16,877
appeared impressive. It
contained detailed sections on
1349
01:12:16,897 --> 01:12:19,739
technologies, methodologies, and
even specific projects scheduled
1350
01:12:19,759 --> 01:12:23,044
for implementation. But when I
applied the test question, the
1351
01:12:23,045 --> 01:12:24,067
document failed completely.
1352
01:12:24,364 --> 01:12:27,325
It contained no clear statements
about behavioral patterns that
1353
01:12:27,364 --> 01:12:30,028
would differentiate their
approach from competitors or
1354
01:12:30,091 --> 01:12:33,419
create specific advantages. When
I pointed this out, the team
1355
01:12:33,919 --> 01:12:37,513
initially pushed back, arguing
that their technology selections
1356
01:12:37,575 --> 01:12:40,865
represented strategic choices.
But upon deeper examination,
1357
01:12:40,884 --> 01:12:43,406
they recognized that their
choices were industry-standard
1358
01:12:43,427 --> 01:12:45,871
approaches that created no
competitive differentiation.
1359
01:12:46,468 --> 01:12:49,797
Their document was essentially
an implementation plan, not a
1360
01:12:49,812 --> 01:12:53,156
Strategy. Beyond the fundamental
test question, I recommend
1361
01:12:53,195 --> 01:12:55,883
applying these additional
diagnostic questions to
1362
01:12:55,992 --> 01:12:59,836
thoroughly evaluate your
Strategy. First, can your
1363
01:12:59,961 --> 01:13:03,429
behavioral commitments remain
stable if market conditions
1364
01:13:03,554 --> 01:13:04,523
change dramatically?
1365
01:13:05,463 --> 01:13:08,486
True strategic behaviors should
remain valid even when the
1366
01:13:08,685 --> 01:13:11,830
external environment shifts. If
your Strategy would need to be
1367
01:13:11,869 --> 01:13:14,810
completely rewritten following a
market disruption, it's likely
1368
01:13:14,849 --> 01:13:19,420
too tactical. Second, do your
commitments create tension by
1369
01:13:19,560 --> 01:13:22,803
forcing difficult trade-offs?
Effective strategies require
1370
01:13:22,896 --> 01:13:25,881
saying no to legitimate
opportunities.
1371
01:13:27,006 --> 01:13:30,287
If your Strategy allows you to
pursue virtually any reasonable
1372
01:13:30,334 --> 01:13:33,224
data science initiative, it
lacks the necessary focus to
1373
01:13:33,271 --> 01:13:36,865
create advantage. Third. Would
your competitors be
1374
01:13:37,185 --> 01:13:40,128
uncomfortable or unwilling to
adopt the same behavioral
1375
01:13:40,168 --> 01:13:43,652
patterns? If your stated
approach would be equally
1376
01:13:43,855 --> 01:13:47,574
appealing to competitors, it
likely lacks the differentiation
1377
01:13:47,636 --> 01:13:49,355
necessary for competitive
advantage.
1378
01:13:50,316 --> 01:13:53,261
Fourth, can team members easily
apply your Strategy to make
1379
01:13:53,324 --> 01:13:55,761
daily decisions without
constantly seeking approval?
1380
01:13:57,168 --> 01:14:00,793
Effective strategies provide
clear decision criteria that can
1381
01:14:00,794 --> 01:14:03,793
be applied consistently across
the organization. Let's examine
1382
01:14:04,083 --> 01:14:06,765
how these tests play out with
real examples.
1383
01:14:07,648 --> 01:14:10,948
A healthcare analytics team's
Strategy document stated they
1384
01:14:11,011 --> 01:14:14,370
would leverage cutting-edge
machine learning techniques to
1385
01:14:14,409 --> 01:14:15,675
improve patient outcomes.
1386
01:14:16,714 --> 01:14:19,980
This failed the test because it
described a goal rather than
1387
01:14:20,034 --> 01:14:23,519
specific behavioral patterns.
When pressed, the team couldn't
1388
01:14:23,581 --> 01:14:26,300
articulate how their approach
differed from competitors or
1389
01:14:26,331 --> 01:14:27,113
created advantage.
1390
01:14:27,191 --> 01:14:31,097
By contrast, another healthcare
organization's Strategy passed
1391
01:14:31,206 --> 01:14:34,204
the test with flying colors.
Their document committed to
1392
01:14:34,285 --> 01:14:37,346
conducting at least five
clinical workflow observations
1393
01:14:37,389 --> 01:14:40,491
per month before developing any
patient-facing analytics.
1394
01:14:41,530 --> 01:14:44,873
This behavioral pattern created
advantage by ensuring their
1395
01:14:44,952 --> 01:14:47,639
solutions addressed actual
clinical needs rather than
1396
01:14:47,694 --> 01:14:49,866
assumed ones, something their
competitors weren't
1397
01:14:49,913 --> 01:14:53,538
systematically doing. Even more
tellingly, when I tested this
1398
01:14:53,616 --> 01:14:56,288
second healthcare team's
Strategy against market
1399
01:14:56,319 --> 01:14:57,709
disruptions, it remained valid.
1400
01:14:58,288 --> 01:15:01,069
When the pandemic dramatically
altered healthcare delivery
1401
01:15:01,147 --> 01:15:04,123
models, their commitment to
workflow observation actually
1402
01:15:04,162 --> 01:15:07,506
became more valuable, not less.
They simply shifted from
1403
01:15:07,588 --> 01:15:10,186
in-person observations to
virtual ones while maintaining
1404
01:15:10,209 --> 01:15:14,076
the core behavioral commitment.
When organizations discover
1405
01:15:14,131 --> 01:15:17,678
their Strategy fails these
tests, they typically exhibit
1406
01:15:17,756 --> 01:15:18,881
one of three common gaps.
1407
01:15:19,319 --> 01:15:22,959
The first is excessive focus on
technical approaches rather than
1408
01:15:23,100 --> 01:15:26,366
competitive behaviors. The
second is a lack of clear
1409
01:15:26,506 --> 01:15:29,616
trade-offs that force
prioritization. The third is
1410
01:15:30,022 --> 01:15:33,996
insufficient specificity. About
behavioral patterns, using vague
1411
01:15:34,035 --> 01:15:37,417
statements like emphasize
quality, without defining what
1412
01:15:37,480 --> 01:15:39,640
specific behaviors constitute
that emphasis.
1413
01:15:40,359 --> 01:15:43,703
Addressing these gaps requires
iterative refinement. Start by
1414
01:15:43,788 --> 01:15:46,328
identifying the competitive
advantages your team needs to
1415
01:15:46,351 --> 01:15:50,406
create, then work backward to
define the specific behavioral
1416
01:15:50,468 --> 01:15:52,890
patterns that would generate
those advantages.
1417
01:15:53,390 --> 01:15:56,421
Test each behavioral commitment
against the diagnostic
1418
01:15:56,453 --> 01:15:59,265
questions, refining until you
have a set of commitments that
1419
01:15:59,328 --> 01:16:02,378
clearly pass the test. A
technology company I worked with
1420
01:16:02,719 --> 01:16:05,421
initially had a data science
Strategy focused entirely on
1421
01:16:05,460 --> 01:16:08,226
implementing specific machine
learning techniques across
1422
01:16:08,304 --> 01:16:09,507
various business functions.
1423
01:16:10,109 --> 01:16:13,367
When they applied the test, they
realized this approach failed to
1424
01:16:13,390 --> 01:16:16,288
differentiate them from
competitors who had access to
1425
01:16:16,289 --> 01:16:18,976
the same techniques. Through
several iterations, they
1426
01:16:19,054 --> 01:16:21,882
transformed their Strategy to
focus on behavioral commitments
1427
01:16:21,945 --> 01:16:24,804
around rapid experimentations.
Specifically, they committed to
1428
01:16:25,382 --> 01:16:26,304
running at least three.
1429
01:16:26,725 --> 01:16:29,465
Customer-facing experiments
weekly and making go-no-go
1430
01:16:29,565 --> 01:16:33,485
decisions within 24 hours of
receiving results. This approach
1431
01:16:33,606 --> 01:16:37,184
created advantage through speed
and learning velocity that their
1432
01:16:37,247 --> 01:16:40,669
more bureaucratic competitors
couldn't match. The revision
1433
01:16:40,708 --> 01:16:43,489
process typically requires three
to five iterations before a
1434
01:16:43,505 --> 01:16:46,036
Strategy successfully passes all
test questions.
1435
01:16:46,505 --> 01:16:49,270
Don't be discouraged if your
first attempt fails. This is
1436
01:16:49,317 --> 01:16:51,911
normal and part of the
development process. Each
1437
01:16:52,051 --> 01:16:54,567
iteration should bring you
closer to a true Strategy?
1438
01:16:55,237 --> 01:16:57,599
Focused on behavioral patterns
that create competitive
1439
01:16:57,638 --> 01:17:00,157
advantage. Once you've
successfully tested your
1440
01:17:00,200 --> 01:17:02,817
Strategy, document it concisely.
1441
01:17:04,102 --> 01:17:06,798
The most effective data science
strategies I've seen are rarely
1442
01:17:06,876 --> 01:17:10,001
longer than three to five pages.
They focus on clearly
1443
01:17:10,102 --> 01:17:12,845
articulating behavioral
commitments, decision criteria,
1444
01:17:13,001 --> 01:17:15,407
and the competitive advantages
these behaviors create.
1445
01:17:16,298 --> 01:17:18,923
Lengthy technical appendices or
detailed project plans may
1446
01:17:19,001 --> 01:17:21,079
complement a Strategy, but
should never substitute for
1447
01:17:21,142 --> 01:17:24,070
clear behavioral commitments.
Remember that Strategy testing
1448
01:17:24,129 --> 01:17:27,529
isn't a one-time exercise.
Revisit your test questions
1449
01:17:27,592 --> 01:17:30,928
quarterly to ensure your
Strategy continues to create the
1450
01:17:31,029 --> 01:17:34,295
intended advantages and remains
relevant as competitive
1451
01:17:34,334 --> 01:17:35,248
landscapes evolve.
1452
01:17:35,670 --> 01:17:38,850
This doesn't mean rewriting your
Strategy frequently. True
1453
01:17:38,912 --> 01:17:42,100
strategic behaviors should
remain stable over time, but
1454
01:17:42,147 --> 01:17:45,397
rather confirming that your
behavioral commitments continue
1455
01:17:45,412 --> 01:17:47,615
to create differentiation and
advantage.
1456
01:17:48,694 --> 01:17:51,818
Aligning your Strategy for
success. With your Strategy now
1457
01:17:51,859 --> 01:17:55,181
battle-tested and refined, you
face perhaps the most deceptive
1458
01:17:55,220 --> 01:17:58,404
challenge in implementation,
organizational alignment.
1459
01:17:59,603 --> 01:18:02,626
Most data science leaders
discover too late that their
1460
01:18:02,806 --> 01:18:06,611
technically sound strategies are
colliding with invisible
1461
01:18:06,673 --> 01:18:09,697
organizational barriers,
creating friction that can
1462
01:18:09,790 --> 01:18:12,478
quietly undermine months of
strategic work.
1463
01:18:13,400 --> 01:18:17,587
This alignment challenge often
emerges as a disconnect between
1464
01:18:17,588 --> 01:18:18,918
what you're doing and what
you're not doing. Team has
1465
01:18:18,978 --> 01:18:21,321
committed to and what the
organization is prepared to
1466
01:18:21,340 --> 01:18:24,403
support. Consider what happened
at a major automotive
1467
01:18:24,422 --> 01:18:27,110
manufacturer, where the data
science team developed a
1468
01:18:27,125 --> 01:18:30,211
brilliant Strategy focused on
predictive maintenance.
1469
01:18:30,610 --> 01:18:33,555
Their behavioral commitments
included running continuous
1470
01:18:33,633 --> 01:18:36,297
monitoring experiments and
deploying models within six-week
1471
01:18:36,360 --> 01:18:40,578
cycles. Despite the Strategy
passing all technical tests, it
1472
01:18:40,641 --> 01:18:43,547
faltered within months as
manufacturing unit managers
1473
01:18:44,000 --> 01:18:48,510
resisted integrating new systems
into their operations. And IT
1474
01:18:48,650 --> 01:18:52,114
governance committees imposed
nine-month security review
1475
01:18:52,192 --> 01:18:52,634
cycles.
1476
01:18:53,536 --> 01:18:56,439
The fundamental issue wasn't the
Strategy itself, but its
1477
01:18:56,517 --> 01:18:59,821
integration with the broader
organization. Research from the
1478
01:19:00,079 --> 01:19:04,845
MIT Sloan Management Review
indicates that 78% of data
1479
01:19:04,985 --> 01:19:08,017
initiatives fail not because of
technology or talent
1480
01:19:08,048 --> 01:19:10,939
limitations, but because of
organizational and cultural
1481
01:19:10,970 --> 01:19:11,407
factors.
1482
01:19:12,048 --> 01:19:15,331
This statistic reveals that the
critical importance of alignment
1483
01:19:15,411 --> 01:19:17,955
as the final but essential
component of Strategy
1484
01:19:18,033 --> 01:19:21,217
implementation. Successful
alignment requires managing
1485
01:19:21,256 --> 01:19:23,783
three crucial organizational
interfaces. The first is
1486
01:19:23,861 --> 01:19:27,220
executive leadership, where
alignment means ensuring your
1487
01:19:27,259 --> 01:19:30,642
behavioral commitments directly
address the competitive
1488
01:19:30,720 --> 01:19:32,127
challenges they perceive.
1489
01:19:33,330 --> 01:19:36,736
A pharmaceutical data science
leader discovered this when her
1490
01:19:36,814 --> 01:19:40,439
team's focus on accelerating
clinical trial analysis seemed
1491
01:19:40,517 --> 01:19:44,035
disconnected from leadership's.
Primary concern about declining
1492
01:19:44,255 --> 01:19:45,177
R&D productivity.
1493
01:19:45,897 --> 01:19:49,098
By reframing their Strategy to
explicitly show how faster
1494
01:19:49,122 --> 01:19:52,161
analysis would identify
unpromising compounds earlier,
1495
01:19:52,747 --> 01:19:56,911
saving millions in development
costs, she secured enthusiastic
1496
01:19:56,989 --> 01:19:59,997
executive support. Executive
alignment techniques that.
1497
01:20:00,048 --> 01:20:04,133
Work include regular Strategy
dialogues rather than one-time
1498
01:20:04,153 --> 01:20:07,856
presentations. A financial
services data science leader
1499
01:20:08,333 --> 01:20:11,778
established quarterly review
sessions with C-Suite executives
1500
01:20:11,856 --> 01:20:15,481
where he would present not just
outcomes but how specific
1501
01:20:15,520 --> 01:20:18,590
behavioral commitments were
creating competitive advantage.
1502
01:20:19,544 --> 01:20:21,872
These sessions evolved from
skeptical questioning to
1503
01:20:21,903 --> 01:20:24,934
collaborative Strategy
refinement as executives began
1504
01:20:24,965 --> 01:20:28,262
to see themselves as co-creators
rather than just approvers.
1505
01:20:28,948 --> 01:20:31,932
Another effective approach is
creating a translator document
1506
01:20:32,531 --> 01:20:35,312
that maps your strategic
behavioral commitments to
1507
01:20:35,375 --> 01:20:38,117
executive priorities. A
healthcare analytics team
1508
01:20:38,195 --> 01:20:41,258
created a one-page visualization
showing how each of their
1509
01:20:41,320 --> 01:20:44,906
strategic behaviors directly
supported the CEO's three stated
1510
01:20:44,969 --> 01:20:45,547
priorities.
1511
01:20:46,812 --> 01:20:50,016
This visual aid became a
powerful alignment tool that
1512
01:20:50,062 --> 01:20:52,656
executives actually kept on
their desks for reference. The
1513
01:20:52,672 --> 01:20:55,219
second crucial interface is with
partner teams, the groups whose
1514
01:20:55,250 --> 01:20:58,422
cooperation you need to succeed.
These typically include IT,
1515
01:20:58,764 --> 01:21:01,585
product teams, business units,
and sometimes compliance or
1516
01:21:01,624 --> 01:21:02,444
legal departments.
1517
01:21:02,985 --> 01:21:05,767
Alignment here requires
understanding their incentives,
1518
01:21:05,825 --> 01:21:08,509
constraints, and working styles.
A retail data science team
1519
01:21:08,563 --> 01:21:11,087
discovered that their commitment
to rapid experimentation was
1520
01:21:11,126 --> 01:21:13,985
constantly frustrated by the IT
department's quarterly release
1521
01:21:14,024 --> 01:21:14,384
schedule.
1522
01:21:15,048 --> 01:21:18,251
Rather than battling against
this constraint, they created a
1523
01:21:18,454 --> 01:21:21,907
lightweight experimentation
environment in collaboration
1524
01:21:21,985 --> 01:21:26,626
with IT, allowing them to run
customer-facing tests without
1525
01:21:26,673 --> 01:21:30,121
disrupting production systems.
This collaborative solution
1526
01:21:30,200 --> 01:21:32,880
preserved their strategic
behavior while respecting IT's
1527
01:21:32,942 --> 01:21:34,860
legitimate concerns about system
stability.
1528
01:21:35,282 --> 01:21:38,758
For partner team alignment,
joint working sessions are far
1529
01:21:38,805 --> 01:21:41,782
more effective than formal
handoffs. A manufacturing
1530
01:21:41,844 --> 01:21:44,587
analytics team instituted
monthly Strategy alignment
1531
01:21:44,665 --> 01:21:48,188
workshops where representatives
from operations, engineering,
1532
01:21:48,204 --> 01:21:52,266
and IT would work through
practical implications of the
1533
01:21:52,282 --> 01:21:54,266
data science team's behavioral
commitments.
1534
01:21:55,266 --> 01:21:58,568
These sessions revealed
potential conflicts early and
1535
01:21:58,668 --> 01:22:02,471
created shared ownership of
solutions. Creating explicit
1536
01:22:02,534 --> 01:22:06,299
interface agreements has also
proven highly effective. An
1537
01:22:06,300 --> 01:22:09,541
insurance data science team
developed partnership charters
1538
01:22:10,018 --> 01:22:12,659
with each major internal
collaborator, documenting
1539
01:22:12,706 --> 01:22:15,924
expectations, communication
protocols, and escalation
1540
01:22:15,971 --> 01:22:16,487
procedures.
1541
01:22:16,924 --> 01:22:20,237
These agreements reduced
friction and helped all parties
1542
01:22:20,409 --> 01:22:23,627
understand how their success
metrics interrelated. The third
1543
01:22:23,690 --> 01:22:26,681
critical interface is within
your own team. Ensuring
1544
01:22:26,761 --> 01:22:29,144
individual contributors
understand and embrace the
1545
01:22:29,163 --> 01:22:30,023
strategic behaviors.
1546
01:22:30,702 --> 01:22:35,007
A study by Gallup found that
only 27% of employees strongly
1547
01:22:35,070 --> 01:22:38,109
agree that they believe in their
company's values. For data
1548
01:22:38,156 --> 01:22:41,999
science teams, this disconnect
often appears as misalignment
1549
01:22:42,038 --> 01:22:44,577
between stated strategic
behaviors and daily work
1550
01:22:44,624 --> 01:22:48,140
priorities. A telecommunications
data science leader addressed
1551
01:22:48,156 --> 01:22:51,562
this by redesigning performance
metrics to directly reflect the
1552
01:22:51,577 --> 01:22:52,827
team's strategic behaviors.
1553
01:22:53,280 --> 01:22:56,864
If the Strategy emphasized rapid
experimentation, individual
1554
01:22:56,903 --> 01:23:00,567
performance reviews highlighted
experiment velocity and learning
1555
01:23:00,625 --> 01:23:05,594
quality rather than just model
accuracy. This alignment created
1556
01:23:05,735 --> 01:23:09,118
powerful reinforcement of
strategic behaviors throughout
1557
01:23:09,133 --> 01:23:09,899
the organization.
1558
01:23:10,352 --> 01:23:13,321
Team alignment also requires
making strategic behaviors
1559
01:23:13,383 --> 01:23:16,258
visible in daily work. A
technology company's data
1560
01:23:16,305 --> 01:23:19,024
science team integrated their
behavioral commitments into
1561
01:23:19,102 --> 01:23:22,305
project kickoff templates,
stand-ups, and retrospectives.
1562
01:23:23,020 --> 01:23:26,741
They started each meeting with
the question, how is today's
1563
01:23:26,860 --> 01:23:28,920
work advancing our strategic
behaviors?
1564
01:23:29,940 --> 01:23:33,104
This constant reinforcement
transformed abstract commitments
1565
01:23:33,143 --> 01:23:35,784
into practical daily choices.
While establishing these
1566
01:23:35,799 --> 01:23:38,401
alignments, you'll inevitably
encounter resistance and
1567
01:23:38,424 --> 01:23:41,409
blockers. The key is identifying
them before they derail your
1568
01:23:41,440 --> 01:23:41,877
Strategy.
1569
01:23:43,190 --> 01:23:45,768
Common alignment blockers
include conflicting incentive
1570
01:23:45,784 --> 01:23:49,502
structures, legacy governance
processes, and competing
1571
01:23:49,518 --> 01:23:50,893
priorities among stakeholders.
1572
01:23:52,024 --> 01:23:56,769
To identify potential blockers,
conduct a premortem exercise
1573
01:23:56,770 --> 01:23:59,851
where you imagine it's one year
later and your Strategy has
1574
01:24:00,011 --> 01:24:03,995
failed due to alignment issues.
What happened? A biotechnology
1575
01:24:04,058 --> 01:24:07,597
data science team used this
technique to identify that their
1576
01:24:08,198 --> 01:24:11,839
commitment to rapid model
deployment would conflict with
1577
01:24:11,840 --> 01:24:14,089
the company's rigid validation
protocols.
1578
01:24:14,901 --> 01:24:18,214
By proactively addressing this
with quality assurance teams,
1579
01:24:18,917 --> 01:24:21,816
they developed a tiered
validation approach. That
1580
01:24:21,916 --> 01:24:25,018
maintained necessary safeguards
while enabling their strategic
1581
01:24:25,079 --> 01:24:28,542
behaviors. Once identified,
addressing blockers requires a
1582
01:24:28,561 --> 01:24:31,163
combination of education,
adaptation, and negotiation.
1583
01:24:32,405 --> 01:24:35,710
Education means helping others
understand the competitive
1584
01:24:35,749 --> 01:24:37,608
rationale behind your strategic
behaviors.
1585
01:24:38,678 --> 01:24:42,038
Adaptation means modifying
implementation details while
1586
01:24:42,053 --> 01:24:45,132
preserving core behavioral
commitments. Negotiation means
1587
01:24:45,241 --> 01:24:47,866
finding compromise solutions
that meet multiple needs.
1588
01:24:48,534 --> 01:24:51,657
Perhaps most challenging is
maintaining alignment as both
1589
01:24:51,676 --> 01:24:53,377
your Strategy and the
organization evolve.
1590
01:24:53,877 --> 01:24:56,838
A consumer goods company's data
science team instituted
1591
01:24:56,924 --> 01:25:00,042
quarterly alignment health
checks where they systematically
1592
01:25:00,088 --> 01:25:02,565
assess the current state of
alignment across all three
1593
01:25:02,604 --> 01:25:05,815
interfaces. These structured
reviews helped them spot
1594
01:25:05,924 --> 01:25:08,096
emerging misalignments before
they became problematic.
1595
01:25:08,237 --> 01:25:11,049
Creating mechanisms for ongoing
dialogue is essential.
1596
01:25:11,877 --> 01:25:16,002
A healthcare analytics team
established a Strategy advisory
1597
01:25:16,096 --> 01:25:19,076
council with representatives
from across the organization.
1598
01:25:19,516 --> 01:25:22,637
This forum provided regular
opportunities to discuss how
1599
01:25:22,700 --> 01:25:25,239
changing organizational
priorities or market conditions
1600
01:25:25,403 --> 01:25:28,043
might affect alignment with the
data science Strategy.
1601
01:25:29,129 --> 01:25:32,090
Successful alignment also
requires adapting communication
1602
01:25:32,145 --> 01:25:35,332
styles to different audiences.
When discussing Strategy with
1603
01:25:35,364 --> 01:25:39,551
executives, focus on competitive
outcomes. With partner teams,
1604
01:25:39,801 --> 01:25:42,864
emphasize collaborative
workflows. With team members,
1605
01:25:43,223 --> 01:25:45,848
connect strategic behaviors to
professional growth and
1606
01:25:45,942 --> 01:25:46,723
meaningful impact.
1607
01:25:47,946 --> 01:25:50,988
Throughout this journey, we've
transformed our understanding of
1608
01:25:51,008 --> 01:25:53,691
data science Strategy from a
mere project plan to a
1609
01:25:53,711 --> 01:25:56,918
commitment of behavioral
patterns that create competitive
1610
01:25:56,973 --> 01:26:01,637
advantage. This paradigm shift
enables teams of any size to be
1611
01:26:01,723 --> 01:26:04,582
more adaptable while maintaining
strategic integrity.
1612
01:26:05,019 --> 01:26:07,660
Your immediate task is
straightforward yet profound.
1613
01:26:08,285 --> 01:26:11,535
Examine your current approach
using our strategic framework.
1614
01:26:12,207 --> 01:26:15,519
Ask yourself whether your team
has clear behavioral commitments
1615
01:26:15,566 --> 01:26:18,379
that directly contribute to
winning in your competitive
1616
01:26:18,419 --> 01:26:22,643
context. Remember that Strategy
manifests through daily actions,
1617
01:26:22,983 --> 01:26:24,045
not PowerPoint slides.
1618
01:26:24,405 --> 01:26:27,670
The most successful data science
teams, regardless of size or
1619
01:26:27,671 --> 01:26:30,592
resources, are those who
consistently embody their
1620
01:26:30,631 --> 01:26:34,139
strategic behaviors, adapting
tactics while maintaining their
1621
01:26:34,202 --> 01:26:37,655
competitive positioning. The
true power of Strategy lies not
1622
01:26:37,717 --> 01:26:41,077
in predicting the future, but in
building a team that can thrive
1623
01:26:41,123 --> 01:26:41,467
within it.
00:00:00,100 --> 00:00:02,303
MIRKO PETERS: What if I told you
that most data science teams
2
00:00:02,441 --> 00:00:05,965
don't have a Strategy at all?
They have plans, roadmaps, and
3
00:00:06,027 --> 00:00:08,891
backlogs. But these aren't
strategies. They're just lists
4
00:00:08,892 --> 00:00:10,750
of activities without a guiding
principle.
5
00:00:11,352 --> 00:00:14,094
In this video, I'm going to
share the exact framework I use
6
00:00:14,095 --> 00:00:17,203
to build successful data science
strategies for teams ranging
7
00:00:17,234 --> 00:00:20,047
from three people at a startup
to 50 plus at a Fortune 500
8
00:00:20,062 --> 00:00:24,031
company. You'll learn how to
create a Strategy that focuses
9
00:00:24,266 --> 00:00:28,031
your team's efforts and drives
measurable business impact.
10
00:00:29,156 --> 00:00:33,639
The one-sentence definition that
changes everything. What if most
11
00:00:33,659 --> 00:00:36,202
data science leaders are getting
Strategy completely wrong?
12
00:00:37,241 --> 00:00:40,491
I've consulted with dozens of
teams across industries, and
13
00:00:40,569 --> 00:00:43,671
almost every time I ask to see
their data science Strategy,
14
00:00:44,194 --> 00:00:47,741
they proudly present me with a
list. Sometimes it's a list of
15
00:00:47,835 --> 00:00:51,725
projects they plan to complete.
Other times, it's technologies
16
00:00:51,741 --> 00:00:53,022
they intend to implement.
17
00:00:53,241 --> 00:00:56,116
Occasionally, it's hiring plans
or organizational structures.
18
00:00:56,319 --> 00:00:59,074
But here's the problem. None of
these things constitute a
19
00:00:59,114 --> 00:01:02,556
Strategy. This misconception
isn't unique to data science.
20
00:01:03,216 --> 00:01:06,302
Organizations everywhere confuse
plans with Strategy.
21
00:01:07,326 --> 00:01:09,724
The difference might seem
semantic, but it creates
22
00:01:09,802 --> 00:01:12,865
profound consequences for data
teams trying to deliver value.
23
00:01:13,607 --> 00:01:17,873
When we treat Strategy as merely
a roadmap of activities, we fail
24
00:01:17,888 --> 00:01:20,607
to address the fundamental
question that should guide our
25
00:01:20,669 --> 00:01:20,935
work.
26
00:01:21,841 --> 00:01:25,196
How will we behave to create
competitive advantage? Consider
27
00:01:25,216 --> 00:01:27,679
a financial services company I
worked with last year.
28
00:01:28,739 --> 00:01:33,343
Their data science Strategy was
a detailed 18-month plan listing
29
00:01:33,382 --> 00:01:36,007
predictive models they would
build, a data lake
30
00:01:36,046 --> 00:01:39,812
implementation timeline, and
hiring targets for specific
31
00:01:40,132 --> 00:01:41,077
technical roles.
32
00:01:42,280 --> 00:01:46,140
Six months in, market conditions
shifted dramatically and
33
00:01:46,202 --> 00:01:49,452
customer needs changed. Their
beautifully crafted plan became
34
00:01:49,546 --> 00:01:50,843
irrelevant almost overnight.
35
00:01:51,796 --> 00:01:54,578
Without guiding principles for
behavior, the team floundered,
36
00:01:54,719 --> 00:01:57,301
chasing new priorities while
abandoning half-completed
37
00:01:57,321 --> 00:02:01,043
initiatives. In another case, a
healthcare analytics team spent
38
00:02:01,285 --> 00:02:04,848
months creating what they called
a comprehensive data Strategy.
39
00:02:05,512 --> 00:02:08,957
The document outlined specific
tools, methodologies, and
40
00:02:08,988 --> 00:02:11,973
projects, all tactical
components without a unifying
41
00:02:12,020 --> 00:02:14,660
strategic direction. When
leadership changed, the new
42
00:02:14,692 --> 00:02:17,535
executive questioned these
choices. Without clear
43
00:02:17,598 --> 00:02:21,020
behavioral commitments tied to
competitive advantage. The team
44
00:02:21,080 --> 00:02:22,702
couldn't defend their approach.
The result?
45
00:02:23,262 --> 00:02:26,364
Resources were redirected, team
morale collapsed, and months of
46
00:02:26,407 --> 00:02:29,286
work went to waste. These
examples reflect what happens
47
00:02:29,372 --> 00:02:33,130
when we mistake activity for
Strategy. The plans themselves
48
00:02:33,255 --> 00:02:36,692
weren't necessarily bad. They
were just insufficient. They
49
00:02:36,762 --> 00:02:39,512
answered what without addressing
how or why.
50
00:02:40,778 --> 00:02:44,262
They focused on tasks rather
than behavioral patterns that
51
00:02:44,325 --> 00:02:47,044
would differentiate the team and
create value regardless of
52
00:02:47,059 --> 00:02:50,021
changing circumstances. This
brings us to the definition that
53
00:02:50,082 --> 00:02:54,166
transformed my own understanding
of Strategy. Gary Pisano, in his
54
00:02:54,248 --> 00:02:57,990
work on R&D Strategy, offers
this powerful insight. A
55
00:02:58,006 --> 00:03:00,896
Strategy is nothing more than a
commitment to a pattern of
56
00:03:00,912 --> 00:03:03,131
behavior intended to help win a
competition.
57
00:03:04,232 --> 00:03:08,084
This elegant formulation cuts
through the confusion and
58
00:03:08,178 --> 00:03:11,303
provides clarity about what
Strategy actually is. Let's
59
00:03:11,381 --> 00:03:13,849
break this down for data science
teams specifically.
60
00:03:14,849 --> 00:03:18,332
First, Strategy is a commitment
to a pattern of behavior. It's
61
00:03:18,352 --> 00:03:21,432
not about specific projects or
technologies. Those are tactical
62
00:03:21,512 --> 00:03:24,653
choices that should flow from
your Strategy. Instead, it's
63
00:03:24,692 --> 00:03:29,317
about how your team consistently
acts and makes decisions. Will
64
00:03:29,332 --> 00:03:32,598
you prioritize speed over
perfection? Will you focus on
65
00:03:32,614 --> 00:03:35,793
specialized expertise or
versatile capabilities? Will you
66
00:03:35,809 --> 00:03:40,543
develop proprietary methods or
leverage open source solutions?
67
00:03:41,496 --> 00:03:44,590
These behavioral patterns
consistently applied define your
68
00:03:44,637 --> 00:03:48,151
Strategy. Second, this behavior
is intended to help win a
69
00:03:48,171 --> 00:03:51,132
competition. Data science
doesn't exist in a vacuum.
70
00:03:51,694 --> 00:03:55,995
Your team competes for resources
within your organization, for
71
00:03:56,058 --> 00:03:59,722
talent in the marketplace, and
ultimately to create value that
72
00:03:59,784 --> 00:04:03,519
helps your company outperform
competitors. A true Strategy
73
00:04:03,878 --> 00:04:07,565
acknowledges this competitive
context and makes explicit
74
00:04:07,675 --> 00:04:09,956
choices about where and how to
compete.
75
00:04:11,128 --> 00:04:14,031
For data science leaders, this
definition is transformative
76
00:04:14,091 --> 00:04:17,373
because it shifts focus from
project deliverables to the
77
00:04:17,416 --> 00:04:21,138
decision-making frameworks that
guide all activities. When
78
00:04:21,216 --> 00:04:24,279
market conditions change or new
technologies emerge, a project
79
00:04:24,341 --> 00:04:27,599
list quickly becomes obsolete.
But behavioral commitments can
80
00:04:27,646 --> 00:04:31,021
remain consistent even as
tactical execution evolves.
81
00:04:31,271 --> 00:04:34,349
Take a retail analytics team I
advised that completely
82
00:04:34,427 --> 00:04:37,490
reimagined their approach using
this definition. Instead of
83
00:04:37,537 --> 00:04:40,624
listing dashboard projects and
machine learning models, They
84
00:04:40,664 --> 00:04:44,048
committed to behavioral
patterns. They would prioritize
85
00:04:44,108 --> 00:04:47,311
customer-facing improvements
over internal efficiencies,
86
00:04:47,831 --> 00:04:52,436
favor rapid experimentation over
lengthy perfectionism, and
87
00:04:52,514 --> 00:04:56,100
emphasize business-intelligible
algorithms over black-box
88
00:04:56,303 --> 00:04:56,882
solutions.
89
00:04:57,821 --> 00:05:00,962
These commitments didn't specify
what they would build, but they
90
00:05:01,322 --> 00:05:04,203
created clear guidelines for how
they would operate in any
91
00:05:04,261 --> 00:05:07,242
circumstance. When retail
shopping patterns drastically
92
00:05:07,304 --> 00:05:10,421
changed during the pandemic,
teams operating from project
93
00:05:10,445 --> 00:05:11,640
plans scrambled to adjust.
94
00:05:12,460 --> 00:05:15,249
But this team's behavioral
Strategy provided immediate
95
00:05:15,265 --> 00:05:17,921
guidance on how to respond.
Their commitment to
96
00:05:17,968 --> 00:05:21,109
customer-facing improvements
meant quickly shifting to new
97
00:05:21,171 --> 00:05:25,203
purchasing patterns. Their rapid
experimentation approach allowed
98
00:05:25,234 --> 00:05:28,130
them to test and learn in
uncertain conditions.
99
00:05:28,310 --> 00:05:31,074
Their focus on intelligible
algorithms meant business
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00:05:31,132 --> 00:05:33,714
partners could understand and
trust their evolving
101
00:05:33,757 --> 00:05:36,976
recommendations. This strategic
approach changes everything
102
00:05:37,039 --> 00:05:40,726
about how data science teams
operate. Instead of asking, what
103
00:05:40,804 --> 00:05:44,070
projects should we work on next
quarter? It prompts more
104
00:05:44,086 --> 00:05:45,070
fundamental questions.
105
00:05:46,070 --> 00:05:49,070
How should we behave to create
maximum competitive advantage?
106
00:05:49,492 --> 00:05:52,320
What patterns of decision-making
will consistently lead to
107
00:05:52,367 --> 00:05:56,137
success regardless of specific
projects? The transformation
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00:05:56,177 --> 00:05:58,257
extends to how teams evaluate
success.
109
00:05:58,697 --> 00:06:01,396
Rather than measuring progress
against a project timeline,
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00:06:01,478 --> 00:06:05,463
which rewards activity but not
necessarily impact, they assess
111
00:06:05,556 --> 00:06:08,517
whether their behavioral
patterns are creating the
112
00:06:08,580 --> 00:06:12,095
intended competitive advantage.
Are they making decisions faster
113
00:06:12,127 --> 00:06:15,095
than competitors? Are they
connecting with customers more
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00:06:15,127 --> 00:06:18,986
effectively? Are they generating
insights that others miss? For
115
00:06:19,049 --> 00:06:22,377
team members, this definition
provides clarity and autonomy.
116
00:06:23,265 --> 00:06:25,825
When everyone understands the
behavioral patterns that define
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00:06:25,826 --> 00:06:28,567
the Strategy, they can make
consistent decisions without
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00:06:28,607 --> 00:06:31,708
constant supervision. They know
how to prioritize when competing
119
00:06:31,747 --> 00:06:34,849
demands arise and can adapt to
changing circumstances while
120
00:06:34,888 --> 00:06:38,450
remaining strategically aligned.
This shift in thinking from
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00:06:38,489 --> 00:06:41,513
projects to behaviors, from
activities to competitive
122
00:06:41,528 --> 00:06:43,122
advantage isn't merely
theoretical.
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00:06:43,185 --> 00:06:45,872
It's the difference between data
science teams that consistently
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00:06:45,903 --> 00:06:48,294
deliver value and those that
struggle to justify their
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00:06:48,325 --> 00:06:51,390
existence when conditions
change. The power of this
126
00:06:51,430 --> 00:06:54,691
definition becomes especially
evident during organizational
127
00:06:54,714 --> 00:06:57,714
transitions. When leadership
changes or budgets tighten,
128
00:06:58,097 --> 00:07:01,058
teams without a true Strategy
find their work suddenly
129
00:07:01,121 --> 00:07:02,417
questioned or redirected.
130
00:07:03,199 --> 00:07:06,917
Teams with clear behavioral
commitments tied to competitive
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00:07:06,980 --> 00:07:10,792
advantage can articulate their
value regardless of who's in
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00:07:10,855 --> 00:07:13,636
charge. This doesn't mean you
should abandon planning
133
00:07:13,699 --> 00:07:16,980
altogether. Tactical plans
remain important for execution,
134
00:07:17,558 --> 00:07:21,375
but they should derive from...
Your strategic behavioral
135
00:07:21,455 --> 00:07:24,558
commitments rather than
constitute the Strategy itself.
136
00:07:24,757 --> 00:07:27,519
The projects you pursue should
be expressions of your strategic
137
00:07:27,679 --> 00:07:30,840
behaviors, not the Strategy
itself. So what is the one
138
00:07:30,925 --> 00:07:34,425
sentence definition of Strategy
that changes everything? It's
139
00:07:34,449 --> 00:07:37,918
that a Strategy is a commitment
to a pattern of behavior
140
00:07:37,996 --> 00:07:40,777
intended to win a competition,
not just a plan or roadmap.
141
00:07:41,386 --> 00:07:45,621
This definition liberates data
science teams from the tyranny
142
00:07:45,777 --> 00:07:49,269
of project lists that quickly
become outdated and focuses
143
00:07:49,329 --> 00:07:52,072
attention on the consistent
behaviors that create lasting
144
00:07:52,191 --> 00:07:56,418
competitive advantage. Plans
versus Strategy, the critical
145
00:07:56,496 --> 00:08:00,418
difference. If Strategy is about
behavioral commitments rather
146
00:08:00,457 --> 00:08:04,910
than project lists, why do 85%
of data science teams still
147
00:08:04,972 --> 00:08:05,785
confuse the two?
148
00:08:06,410 --> 00:08:08,644
The distinction isn't just
academic, it's the difference
149
00:08:08,676 --> 00:08:11,051
between teams that create
lasting value and those that
150
00:08:11,113 --> 00:08:14,332
constantly restart from zero.
When data science leaders
151
00:08:14,441 --> 00:08:17,379
proudly slide documents across
the table labeled our data
152
00:08:17,441 --> 00:08:20,762
Strategy, I often find myself
looking at elaborate
153
00:08:20,783 --> 00:08:23,523
spreadsheets listing
technologies to implement,
154
00:08:23,766 --> 00:08:27,930
dashboards to build, or models
to deploy over the next 12 to 18
155
00:08:27,992 --> 00:08:28,227
months.
156
00:08:29,211 --> 00:08:32,516
These documents typically follow
a predictable pattern. They
157
00:08:32,555 --> 00:08:35,016
begin with current state
assessment, move to gap
158
00:08:35,078 --> 00:08:38,266
analysis, then outline a series
of projects with timelines,
159
00:08:38,641 --> 00:08:41,922
resource requirements, and
sometimes even ROI calculations.
160
00:08:42,859 --> 00:08:45,734
At first glance, these documents
appear comprehensive. They
161
00:08:45,750 --> 00:08:49,243
contain Gantt charts. Showing
implementation phases for data
162
00:08:49,302 --> 00:08:52,507
lakes, machine learning
platforms, or analytics tools,
163
00:08:52,706 --> 00:08:55,749
they outline hiring plans for
specific roles. Data engineers,
164
00:08:55,953 --> 00:08:59,734
ML engineers, business analysts,
they specify which algorithms
165
00:08:59,890 --> 00:09:03,273
will be deployed and which
business units will receive
166
00:09:03,374 --> 00:09:04,999
analytics capabilities first.
167
00:09:05,624 --> 00:09:08,234
They're often visually
impressive, with professional
168
00:09:08,281 --> 00:09:11,281
graphics and executive summaries
designed for leadership
169
00:09:11,343 --> 00:09:14,640
consumption. The problem isn't
that these documents lack detail
170
00:09:14,687 --> 00:09:17,583
or thought. The problem is that
they answer an entirely
171
00:09:17,622 --> 00:09:20,206
different question than what
Strategy should address. They
172
00:09:20,245 --> 00:09:23,487
explain what the team plans to
do, but not how they'll behave
173
00:09:23,530 --> 00:09:25,890
differently to outperform
competitors or create
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00:09:25,913 --> 00:09:27,054
sustainable advantage.
175
00:09:27,929 --> 00:09:29,991
Let me illustrate this
distinction with a concrete
176
00:09:30,015 --> 00:09:30,452
example.
177
00:09:31,319 --> 00:09:33,976
Imagine two retail companies
facing the same challenge,
178
00:09:34,741 --> 00:09:37,726
improving customer retention
through data science. The first
179
00:09:37,757 --> 00:09:41,523
company develops what they call
a Strategy that lists projects.
180
00:09:42,382 --> 00:09:44,194
Implement a customer data
platform in Q1.
181
00:09:45,537 --> 00:09:49,785
Build churn prediction models in
Q2, develop recommendation
182
00:09:49,843 --> 00:09:53,691
engines in Q3, and deploy
personalized marketing campaigns
183
00:09:53,769 --> 00:09:54,074
in Q4.
184
00:09:55,371 --> 00:09:57,902
The second company takes a
different approach. Their
185
00:09:57,941 --> 00:10:02,512
Strategy states, We will win by
rapidly testing small targeted
186
00:10:02,573 --> 00:10:05,335
interventions based on simple
customer behavior patterns
187
00:10:05,674 --> 00:10:07,479
rather than building
comprehensive models.
188
00:10:08,081 --> 00:10:11,182
We commit to running at least
five small experiments per
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00:10:11,284 --> 00:10:15,901
month, making decisions within
48 hours of getting results, and
190
00:10:15,979 --> 00:10:18,729
scaling successful approaches
immediately, even with
191
00:10:18,854 --> 00:10:22,854
incomplete information. When
market conditions change, say a
192
00:10:22,885 --> 00:10:26,213
major competitor launches an
innovative loyalty program, the
193
00:10:26,229 --> 00:10:29,399
responses reveal the critical
difference. The first company's
194
00:10:29,459 --> 00:10:30,959
detailed plan becomes obsolete.
195
00:10:31,641 --> 00:10:35,045
They must restart their planning
cycle, re-evaluate priorities,
196
00:10:35,506 --> 00:10:38,986
and develop a new project
sequence. Meanwhile, the second
197
00:10:39,010 --> 00:10:41,947
company simply applies their
established behavioral pattern
198
00:10:42,010 --> 00:10:45,330
to the new situation, quickly
testing counter-moves and
199
00:10:45,580 --> 00:10:48,799
scaling what works. This
distinction becomes even more
200
00:10:48,815 --> 00:10:50,611
critical as data science teams
grow.
201
00:10:51,877 --> 00:10:54,518
A startup with three data
scientists might survive with
202
00:10:54,549 --> 00:10:57,633
just a plan because Informal
communication and rapid pivoting
203
00:10:57,672 --> 00:11:01,156
happen naturally. But as teams
grow to 10, 30 or 100 people
204
00:11:01,176 --> 00:11:04,137
across multiple business units,
the lack of consistent
205
00:11:04,176 --> 00:11:06,543
behavioral commitments leads to
fragmentation.
206
00:11:07,043 --> 00:11:09,504
Without clear strategic
behaviors, different team
207
00:11:09,543 --> 00:11:12,168
members make conflicting
decisions, pursue contradictory
208
00:11:12,199 --> 00:11:16,590
approaches and optimize for
incompatible outcomes. In
209
00:11:16,637 --> 00:11:19,340
enterprises, I've witnessed
teams with impressive technical
210
00:11:19,387 --> 00:11:22,637
talent who produced minimal
business impact because they
211
00:11:22,699 --> 00:11:24,980
lacked strategic behavioral
commitments.
212
00:11:25,458 --> 00:11:28,699
Their Strategy documents
outlined ambitious roadmaps for
213
00:11:28,738 --> 00:11:33,896
advanced AI capabilities, but
said nothing about how decisions
214
00:11:33,919 --> 00:11:37,982
would be made, which problems
would take priority, or what
215
00:11:38,177 --> 00:11:39,677
trade-offs would guide their
work.
216
00:11:40,380 --> 00:11:42,786
The result was a collection of
technically impressive but
217
00:11:42,818 --> 00:11:46,146
disconnected initiatives that
failed to build on each other or
218
00:11:46,161 --> 00:11:49,208
create lasting competitive
advantage. What we're witnessing
219
00:11:49,224 --> 00:11:52,866
is the fundamental nature of
plans versus strategies. Plans
220
00:11:52,946 --> 00:11:56,391
specify tasks, timelines, and
deliverables. They answer what
221
00:11:56,609 --> 00:11:57,652
and when questions.
222
00:11:58,051 --> 00:12:00,355
They are necessary operational
documents, but they don't
223
00:12:00,375 --> 00:12:02,676
provide guidance for how to
respond to changing
224
00:12:02,738 --> 00:12:05,480
circumstances or how to make
difficult trade-offs. They
225
00:12:05,519 --> 00:12:08,504
become outdated the moment
market conditions shift.
226
00:12:09,223 --> 00:12:13,082
Strategies, by contrast, specify
behavioral patterns and decision
227
00:12:13,144 --> 00:12:15,223
criteria. They answer how
questions.
228
00:12:15,644 --> 00:12:19,238
How will we make decisions? How
will we allocate resources? How
229
00:12:19,254 --> 00:12:21,207
will we approach problems
differently than our
230
00:12:21,269 --> 00:12:24,083
competitors? These behavioral
commitments provide consistent
231
00:12:24,124 --> 00:12:27,329
guidance, even as specific
projects evolve. Another
232
00:12:27,368 --> 00:12:29,950
critical difference emerges in
how success is measured.
233
00:12:30,907 --> 00:12:34,376
Plans are evaluated based on
completion metrics. Did we
234
00:12:34,516 --> 00:12:37,540
finish the projects on time and
within budget? Strategies are
235
00:12:37,555 --> 00:12:41,305
evaluated based on competitive
outcomes. Did our behavioral
236
00:12:41,368 --> 00:12:43,696
patterns create advantage
compared to alternative
237
00:12:43,727 --> 00:12:46,680
approaches? This distinction
forces teams to connect their
238
00:12:46,727 --> 00:12:49,212
work directly to competitive
position rather than just
239
00:12:49,274 --> 00:12:50,930
checking boxes on a project
list.
240
00:12:51,490 --> 00:12:54,291
The confusion between plans and
strategies creates particular
241
00:12:54,330 --> 00:12:56,852
problems for data science
because of the field's inherent
242
00:12:56,930 --> 00:13:00,531
uncertainty. In established
functions like finance or
243
00:13:00,532 --> 00:13:04,133
operations, detailed plans often
work because the environment is
244
00:13:04,172 --> 00:13:07,633
relatively stable and processes
are well understood.
245
00:13:08,727 --> 00:13:12,039
But data science involves
exploration, experimentation and
246
00:13:12,055 --> 00:13:15,930
discovery. Detailed project
plans for such work invariably
247
00:13:15,977 --> 00:13:18,818
become fiction shortly after
they are created. This reality
248
00:13:18,858 --> 00:13:22,081
doesn't mean data science teams
should abandon planning. Rather,
249
00:13:22,183 --> 00:13:25,124
it means their strategies must
establish behavioral patterns
250
00:13:25,526 --> 00:13:27,710
specifically designed to
navigate uncertainty
251
00:13:27,765 --> 00:13:28,249
effectively.
252
00:13:28,765 --> 00:13:31,647
These might include commitments
to specific experimentation
253
00:13:31,694 --> 00:13:35,030
cadences, explicit resource
allocation between exploration
254
00:13:35,077 --> 00:13:38,155
and exploitation, or decision
processes for rapidly
255
00:13:38,233 --> 00:13:41,702
terminating unproductive
avenues. One multinational
256
00:13:41,733 --> 00:13:44,530
consumer goods company I worked
with transformed their approach
257
00:13:44,546 --> 00:13:47,016
when they shifted from a
detailed AI implementation
258
00:13:47,056 --> 00:13:50,258
roadmap to a Strategy focused on
rapid learning cycles.
259
00:13:50,961 --> 00:13:54,359
Their new Strategy committed to
specific behaviors. All
260
00:13:54,406 --> 00:13:57,242
initiatives would start with
minimum viable data products
261
00:13:57,289 --> 00:14:01,328
delivered in under four weeks.
Business stakeholders would be
262
00:14:01,375 --> 00:14:04,609
embedded in technical teams
rather than just receiving
263
00:14:04,687 --> 00:14:05,156
updates.
264
00:14:06,047 --> 00:14:10,500
And technical complexity would
be deliberately limited until
265
00:14:10,781 --> 00:14:13,687
business value was validated.
These behavioral commitments
266
00:14:13,734 --> 00:14:17,259
remained constant. Even as
specific projects evolved
267
00:14:17,419 --> 00:14:20,925
dramatically based on market
feedback. The root of this
268
00:14:21,003 --> 00:14:25,425
confusion often lies in how
requests for Strategy are framed
269
00:14:25,488 --> 00:14:26,425
within organizations.
270
00:14:26,550 --> 00:14:29,831
When an executive asks a data
science leader to develop our
271
00:14:29,894 --> 00:14:33,456
data Strategy, both parties
frequently default to thinking
272
00:14:33,488 --> 00:14:36,331
about roadmaps and
implementation plans because
273
00:14:36,378 --> 00:14:38,660
these are concrete and familiar
formats.
274
00:14:39,503 --> 00:14:43,441
Breaking this pattern requires
explicitly reframing the request
275
00:14:43,972 --> 00:14:46,872
around behavioral commitments
and competitive approaches
276
00:14:47,453 --> 00:14:51,177
rather than project sequences.
As teams grow in size and
277
00:14:51,197 --> 00:14:54,122
complexity, the distinction
between plans and strategies
278
00:14:54,162 --> 00:14:55,263
becomes even more crucial.
279
00:14:55,841 --> 00:14:58,966
Small teams might succeed
through the intuitive behaviors
280
00:14:58,982 --> 00:15:01,490
of a few talented individuals,
but larger teams require
281
00:15:01,568 --> 00:15:04,474
explicit behavioral commitments
to maintain coherence. Without
282
00:15:04,537 --> 00:15:07,755
them, different team members
optimize for incompatible
283
00:15:07,849 --> 00:15:12,824
outcomes, technical decisions,
lack consistency, and the
284
00:15:12,865 --> 00:15:16,129
cumulative effect of the team's
work diminishes rather than
285
00:15:16,187 --> 00:15:16,750
compounds.
286
00:15:18,750 --> 00:15:22,031
The three requirements of
effective Strategy. Beyond mere
287
00:15:22,054 --> 00:15:26,656
behavioral patterns lies a more
fundamental challenge, crafting
288
00:15:26,657 --> 00:15:30,906
a Strategy that actually works
when implemented. What makes the
289
00:15:30,937 --> 00:15:33,312
difference between data science
strategies that drive
290
00:15:33,359 --> 00:15:35,812
organizational transformation
versus those that become
291
00:15:35,906 --> 00:15:39,966
irrelevant within months. Three
specific requirements separate
292
00:15:40,005 --> 00:15:41,446
success from failure.
293
00:15:41,868 --> 00:15:44,829
In all my years consulting with
data science teams, I've
294
00:15:44,891 --> 00:15:47,876
witnessed a recurring pattern. A
brilliant team develops what
295
00:15:47,891 --> 00:15:50,594
appears to be a compelling
Strategy. They've correctly
296
00:15:50,938 --> 00:15:54,180
identified that Strategy is
about behavioral commitments
297
00:15:54,321 --> 00:15:57,415
rather than project lists. Their
document beautifully articulates
298
00:15:57,462 --> 00:15:59,540
how they'll behave to create
competitive advantage.
299
00:16:00,071 --> 00:16:03,774
Everyone nods enthusiastically
at the kick-off meeting. Yet six
300
00:16:03,852 --> 00:16:07,768
months later, the Strategy has
been abandoned. Or Worse is
301
00:16:07,808 --> 00:16:10,310
being followed religiously
despite producing minimal
302
00:16:10,349 --> 00:16:15,154
results. Gary Pisano's research
on R&D Strategy goes beyond
303
00:16:15,279 --> 00:16:17,755
simply defining Strategy as
behavioral commitments.
304
00:16:18,240 --> 00:16:21,044
He identifies three critical
requirements that separate
305
00:16:21,122 --> 00:16:23,966
theoretical strategies from
those that actually transform
306
00:16:24,029 --> 00:16:28,513
organizations. Consistency,
coherence, and alignment. When
307
00:16:28,810 --> 00:16:32,232
data science strategies fail,
despite correct intentions, it's
308
00:16:32,294 --> 00:16:35,357
typically because they've missed
one or more of these fundamental
309
00:16:35,416 --> 00:16:38,658
requirements. Let's examine each
requirement and understand why
310
00:16:38,720 --> 00:16:41,283
they matter specifically for
data science teams.
311
00:16:41,806 --> 00:16:44,728
Consistency refers to making
decisions that contribute to the
312
00:16:44,767 --> 00:16:48,025
same competitive advantage over
time. This doesn't mean rigidly
313
00:16:48,087 --> 00:16:51,306
sticking to the same tactics
regardless of circumstances, but
314
00:16:51,431 --> 00:16:54,931
rather ensuring that the
underlying behavioral patterns
315
00:16:55,290 --> 00:16:58,994
reinforce the same strategic
goals even as implementation
316
00:16:59,056 --> 00:17:00,056
details evolve.
317
00:17:00,959 --> 00:17:04,219
Consider a financial technology
startup, I advised, whose
318
00:17:04,420 --> 00:17:07,398
Strategy emphasized rapid
experimentation to discover
319
00:17:07,461 --> 00:17:11,379
customer needs. Their behavioral
commitment was to conduct at
320
00:17:11,465 --> 00:17:13,324
least two customer experiments
weekly.
321
00:17:13,824 --> 00:17:16,363
Initially, this worked
brilliantly. But when they
322
00:17:16,402 --> 00:17:19,098
received a large investment, the
leadership suddenly shifted
323
00:17:19,160 --> 00:17:21,707
focus to building
enterprise-grade infrastructure
324
00:17:21,723 --> 00:17:24,551
that would take months to
implement with no customer
325
00:17:24,629 --> 00:17:25,051
feedback.
326
00:17:26,066 --> 00:17:28,379
While they claimed their
Strategy remained unchanged,
327
00:17:28,547 --> 00:17:31,190
their actual decisions no longer
reflected their stated
328
00:17:31,229 --> 00:17:34,533
behavioral commitments. Within
three months, they had built
329
00:17:34,693 --> 00:17:37,732
sophisticated systems that
customers didn't want, forcing
330
00:17:37,756 --> 00:17:40,279
them to start over with
substantial sunk costs. The
331
00:17:40,295 --> 00:17:40,561
lesson?
332
00:17:42,076 --> 00:17:44,498
Consistency doesn't mean
inflexibility, but it does
333
00:17:44,545 --> 00:17:48,451
require discipline to maintain
core behavioral commitments,
334
00:17:48,607 --> 00:17:50,561
even when tempting alternatives
arise.
335
00:17:51,686 --> 00:17:54,717
For data science teams,
consistency is particularly
336
00:17:54,779 --> 00:17:57,170
challenging because
opportunities constantly emerge
337
00:17:57,217 --> 00:18:00,956
to apply. New technologies or
methodologies that may distract
338
00:18:01,296 --> 00:18:04,735
from strategic focus. The second
requirement, coherence, means
339
00:18:04,775 --> 00:18:07,696
ensuring all parts of your
Strategy support rather than
340
00:18:07,775 --> 00:18:08,657
contradict each other.
341
00:18:09,618 --> 00:18:13,157
Many data science strategies
include behavioral commitments
342
00:18:13,181 --> 00:18:15,720
that sound reasonable
individually but create friction
343
00:18:15,751 --> 00:18:19,501
when combined. A pharmaceutical
research team I worked with
344
00:18:19,892 --> 00:18:23,657
committed both to maintaining
gold standard data quality and
345
00:18:23,860 --> 00:18:27,092
rapidly prototyping analytics
models. In practice, these
346
00:18:27,112 --> 00:18:31,097
commitments created constant
conflict as the rigorous data
347
00:18:31,156 --> 00:18:34,339
preparation processes made rapid
prototyping impossible.
348
00:18:35,019 --> 00:18:39,425
Team members split into camps
with data engineers prioritizing
349
00:18:39,464 --> 00:18:42,488
quality and data scientists
prioritizing speed. The
350
00:18:42,489 --> 00:18:45,566
resulting tension paralyzed
decision making. Creating
351
00:18:45,597 --> 00:18:49,175
coherence means critically
examining how your behavioral
352
00:18:49,238 --> 00:18:50,675
commitments interact with each
other.
353
00:18:50,910 --> 00:18:54,300
Do they create synergies or do
they pull your team in different
354
00:18:54,316 --> 00:18:58,062
directions? This requires
honestly assessing trade-offs
355
00:18:58,501 --> 00:19:02,107
rather than pretending
contradictions don't exist. The
356
00:19:02,126 --> 00:19:05,869
pharmaceutical team eventually
revised their Strategy to focus
357
00:19:06,033 --> 00:19:10,673
on fit-for-purpose data quality,
maintaining rigorous standards
358
00:19:10,674 --> 00:19:14,642
for production systems while
accepting approximations for
359
00:19:14,736 --> 00:19:16,236
early-stage experimentation.
360
00:19:17,626 --> 00:19:21,892
This single adjustment created
coherence that allowed both
361
00:19:22,064 --> 00:19:25,567
rapid innovation and reliable
production systems The third
362
00:19:25,607 --> 00:19:29,167
requirement, alignment, connects
your Strategy to broader
363
00:19:29,268 --> 00:19:31,468
organizational goals and
competitive context.
364
00:19:32,249 --> 00:19:35,565
Even the most consistent and
coherent data science Strategy
365
00:19:35,972 --> 00:19:39,167
fails if it doesn't help the
organization win in its specific
366
00:19:39,253 --> 00:19:42,464
competitive environment. A
retail analytics team I worked
367
00:19:42,495 --> 00:19:45,573
with had developed a beautifully
coherent Strategy focused on
368
00:19:45,932 --> 00:19:49,526
sophisticated customer lifetime
value modeling. Their behavioral
369
00:19:49,573 --> 00:19:52,167
commitments all supported this
focus consistently.
370
00:19:53,131 --> 00:19:56,178
The problem? Their organization
competed primarily on supply
371
00:19:56,258 --> 00:19:59,547
chain efficiency, not customer
intimacy. While their Strategy
372
00:19:59,606 --> 00:20:02,925
was internally sound, It lacked
alignment with organizational
373
00:20:02,986 --> 00:20:06,269
priorities. Creating alignment
requires understanding how your
374
00:20:06,328 --> 00:20:09,011
team's distinctive capabilities
contribute to your
375
00:20:09,070 --> 00:20:10,875
organization's competitive
position.
376
00:20:11,476 --> 00:20:14,359
This means regularly reassessing
whether your behavioral
377
00:20:14,414 --> 00:20:17,508
commitments still serve the
organization's evolving needs.
378
00:20:18,023 --> 00:20:21,179
The retail analytics team
ultimately revised their
379
00:20:21,242 --> 00:20:23,992
Strategy to focus on inventory
optimization and demand
380
00:20:24,039 --> 00:20:27,023
forecasting, creating immediate
value recognition from
381
00:20:27,101 --> 00:20:27,523
leadership.
382
00:20:28,516 --> 00:20:31,560
These three requirements become
exponentially more difficult to
383
00:20:31,579 --> 00:20:34,622
maintain as data science teams
scale. With a team of three,
384
00:20:35,384 --> 00:20:37,849
consistency often emerges
naturally through daily
385
00:20:37,927 --> 00:20:40,825
interactions. With 30 team
members spread across different
386
00:20:40,888 --> 00:20:44,411
projects and locations,
maintaining consistency requires
387
00:20:45,099 --> 00:20:47,552
deliberate communication and
governance structures.
388
00:20:48,474 --> 00:20:52,224
A global insurance company I
advised struggled with this
389
00:20:52,536 --> 00:20:55,880
exact challenge. Their data
science Strategy appeared sound
390
00:20:55,881 --> 00:20:59,502
on paper. But regional teams
interpreted and implemented
391
00:20:59,624 --> 00:21:02,206
behavioral commitments
differently based on local
392
00:21:02,245 --> 00:21:05,405
conditions. The result was
fragmentation rather than
393
00:21:05,491 --> 00:21:06,311
collective impact.
394
00:21:07,186 --> 00:21:10,592
Similarly, coherence becomes
more challenging as teams grow
395
00:21:10,655 --> 00:21:13,749
because different subgroups
naturally optimize for different
396
00:21:13,811 --> 00:21:16,358
outcomes based on their specific
responsibilities.
397
00:21:17,592 --> 00:21:21,186
Alignment becomes more complex
as teams must interface with
398
00:21:21,389 --> 00:21:24,780
more stakeholders holding
divergent priorities. The
399
00:21:24,800 --> 00:21:27,163
structured governance that helps
larger teams maintain
400
00:21:27,221 --> 00:21:30,167
consistency can sometimes hinder
the flexibility needed for
401
00:21:30,225 --> 00:21:32,487
alignment with changing
organizational needs.
402
00:21:33,409 --> 00:21:37,276
When data science strategies
fail, despite being focused on
403
00:21:37,315 --> 00:21:40,518
behavioral commitments rather
than project lists, the root
404
00:21:40,596 --> 00:21:43,495
cause typically traces back to
missing one of these three
405
00:21:43,542 --> 00:21:44,135
requirements.
406
00:21:45,073 --> 00:21:48,057
A technology company I worked
with committed to democratizing
407
00:21:48,089 --> 00:21:50,339
data access by building
self-service tools for all
408
00:21:50,385 --> 00:21:53,260
departments. This behavioral
commitment was clear and
409
00:21:53,323 --> 00:21:56,266
consistently followed. But
lacked coherence with their
410
00:21:56,346 --> 00:21:59,567
other commitment to protecting
sensitive customer information.
411
00:22:00,310 --> 00:22:04,251
The result was constant security
exceptions, duplicated efforts
412
00:22:04,290 --> 00:22:07,399
to build department-specific
solutions with varying controls,
413
00:22:07,993 --> 00:22:11,899
and frustrated stakeholders.
Another common failure pattern
414
00:22:12,087 --> 00:22:14,884
is when teams maintain
consistency and coherence but
415
00:22:14,978 --> 00:22:18,446
lose alignment over time. An
energy sector analytics team
416
00:22:18,868 --> 00:22:22,149
followed their Strategy of
building advanced predictive
417
00:22:22,212 --> 00:22:24,469
maintenance models. With
impressive discipline.
418
00:22:24,910 --> 00:22:27,672
Their behavioral commitments
were consistent and coherent.
419
00:22:27,871 --> 00:22:30,797
However, when market pressures
shifted their company's focus to
420
00:22:30,855 --> 00:22:33,801
renewable energy initiatives,
they continued optimizing
421
00:22:33,840 --> 00:22:36,777
traditional operations while the
organization pivoted around
422
00:22:36,824 --> 00:22:40,887
them. Despite executing their
Strategy flawlessly, they became
423
00:22:40,949 --> 00:22:43,090
increasingly irrelevant to
business outcomes.
424
00:22:43,605 --> 00:22:45,996
Testing your data science
Strategy against these three
425
00:22:46,027 --> 00:22:49,105
requirements provides a powerful
way to identify potential
426
00:22:49,168 --> 00:22:53,552
failure points before they
manifest. Ask yourself. Will
427
00:22:53,612 --> 00:22:56,594
these behavioral commitments
still apply when conditions
428
00:22:56,655 --> 00:23:00,460
change? Consistency. Do these
commitments support or
429
00:23:00,499 --> 00:23:02,378
contradict each other?
Coherence.
430
00:23:03,284 --> 00:23:05,807
And do these commitments help
the organization win in its
431
00:23:05,846 --> 00:23:07,565
competitive context? Alignment.
432
00:23:08,448 --> 00:23:12,089
Why data science teams struggle
with Strategy? Testing your data
433
00:23:12,151 --> 00:23:15,339
science Strategy against these
requirements reveals an
434
00:23:15,511 --> 00:23:18,417
uncomfortable truth. Data
science teams operate in
435
00:23:18,479 --> 00:23:21,354
organizational territory where
consistency see.
436
00:23:21,456 --> 00:23:24,579
Coherence and alignment are
uniquely difficult to maintain.
437
00:23:25,020 --> 00:23:28,544
What if the very nature of data
science work itself, not poor
438
00:23:28,602 --> 00:23:32,227
leadership or unclear vision, is
what makes strategic success so
439
00:23:32,345 --> 00:23:36,290
elusive? Data science occupies a
peculiar position in most
440
00:23:36,352 --> 00:23:37,048
organizations.
441
00:23:38,157 --> 00:23:42,235
Unlike marketing, sales, or even
traditional IT, data teams sit
442
00:23:42,579 --> 00:23:45,532
at a complex intersection.
They're highly technical
443
00:23:45,595 --> 00:23:47,782
specialists who must
simultaneously translate
444
00:23:47,876 --> 00:23:51,805
abstract concepts into business
value. This hybrid identity
445
00:23:51,885 --> 00:23:55,709
creates an organizational limbo
where data teams are expected to
446
00:23:55,710 --> 00:23:59,635
be both innovative researchers
and reliable service providers,
447
00:24:00,213 --> 00:24:03,018
often to multiple stakeholders
with competing priorities.
448
00:24:03,994 --> 00:24:07,198
This positioning creates
strategic quicksand that few
449
00:24:07,307 --> 00:24:10,182
leaders are prepared to
navigate. Consider how data
450
00:24:10,229 --> 00:24:13,979
science must bridge multiple
worlds. They need deep technical
451
00:24:14,026 --> 00:24:16,963
expertise to implement
solutions, business domain
452
00:24:17,026 --> 00:24:22,151
knowledge to identify valuable
problems, and political savvy to
453
00:24:22,190 --> 00:24:23,991
navigate organizational
priorities.
454
00:24:24,893 --> 00:24:27,534
Each of these domains operates
on different timescales and
455
00:24:27,557 --> 00:24:29,534
success metrics, making
consistent behavioral
456
00:24:29,581 --> 00:24:32,721
commitments extraordinarily
difficult. The technological
457
00:24:32,784 --> 00:24:36,088
foundation of data science
brings its own strategic
458
00:24:36,151 --> 00:24:36,917
complications.
459
00:24:37,120 --> 00:24:40,432
While marketing strategies might
remain stable for years, data
460
00:24:40,495 --> 00:24:43,292
science teams face a landscape
where foundational tools and
461
00:24:43,307 --> 00:24:46,432
techniques evolve quarterly. A
commitment to specific
462
00:24:46,495 --> 00:24:49,580
technologies, whether database
architectures, programming
463
00:24:49,640 --> 00:24:52,842
frameworks or model
architectures risks becoming
464
00:24:53,003 --> 00:24:56,487
obsolete before the Strategy can
even be fully implemented.
465
00:24:56,866 --> 00:24:59,854
What other department faces a
situation where their primary
466
00:24:59,932 --> 00:25:03,010
tools might be rendered outdated
by a single research paper or
467
00:25:03,112 --> 00:25:06,095
open source release? Take the
experience of a mid-size
468
00:25:06,135 --> 00:25:09,520
insurance company that committed
to a Strategy centered around
469
00:25:09,559 --> 00:25:11,141
traditional machine learning
models.
470
00:25:11,641 --> 00:25:14,621
Six months into implementation,
advances in transformer-based
471
00:25:14,707 --> 00:25:17,223
architectures made their
approach significantly less
472
00:25:17,270 --> 00:25:20,676
competitive. Their commitment to
a specific technical approach,
473
00:25:21,082 --> 00:25:24,395
rather than to the behavioral
pattern of continuously
474
00:25:24,473 --> 00:25:28,535
evaluating emerging methods,
left them scrambling to catch up
475
00:25:28,816 --> 00:25:30,441
while competitors surged ahead.
476
00:25:31,457 --> 00:25:34,575
Beyond the technical flux, Data
science teams face unique
477
00:25:34,615 --> 00:25:37,900
challenges in maintaining
coherence across their strategic
478
00:25:37,939 --> 00:25:40,380
commitments. Their
cross-functional nature means
479
00:25:40,482 --> 00:25:42,786
they often serve as the
connective tissue between
480
00:25:42,825 --> 00:25:45,427
departments with fundamentally
different perspectives and
481
00:25:45,443 --> 00:25:46,005
incentives.
482
00:25:46,990 --> 00:25:49,630
Product teams want quick
experiments to validate
483
00:25:49,677 --> 00:25:52,974
features, finance needs,
reliable forecasting models,
484
00:25:53,693 --> 00:25:57,661
operations, demands, efficient
optimization, algorithms, and
485
00:25:57,755 --> 00:26:01,378
executives request comprehensive
dashboards. All from the same
486
00:26:01,439 --> 00:26:04,062
team working with the same
finite resources.
487
00:26:05,222 --> 00:26:07,644
A healthcare analytics startup
illustrated this challenge
488
00:26:07,706 --> 00:26:11,066
perfectly when they attempted to
simultaneously commit to rapid
489
00:26:11,128 --> 00:26:14,831
experimentation for clinical
products while also promising
490
00:26:15,034 --> 00:26:18,042
enterprise-grade reliability for
their patient management
491
00:26:18,074 --> 00:26:18,449
systems.
492
00:26:19,417 --> 00:26:22,152
These behavioral commitments
directly contradicted each other
493
00:26:22,199 --> 00:26:25,324
in practice, creating impossible
situations where team members
494
00:26:25,386 --> 00:26:28,730
couldn't satisfy both strategic
directions simultaneously.
495
00:26:29,805 --> 00:26:32,128
When pushed to prioritize,
leadership would often give
496
00:26:32,167 --> 00:26:35,771
conflicting guidance, depending
on which stakeholder had most
497
00:26:35,829 --> 00:26:39,017
recently raised concerns. The
alignment challenge for data
498
00:26:39,072 --> 00:26:42,337
science stems from its
relatively novel position in
499
00:26:42,517 --> 00:26:43,822
organizational hierarchies.
500
00:26:44,556 --> 00:26:47,556
While established departments
like finance or sales have
501
00:26:47,618 --> 00:26:51,165
clearly defined relationships to
business outcomes, data
502
00:26:51,228 --> 00:26:53,931
science's contribution can be
more difficult to quantify and
503
00:26:53,947 --> 00:26:57,926
communicate. This creates an
alignment gap where Data teams
504
00:26:58,026 --> 00:27:00,549
might technically deliver on
their behavioral commitments
505
00:27:01,009 --> 00:27:03,990
while still failing to connect
those behaviors to competitive
506
00:27:04,033 --> 00:27:04,513
advantage.
507
00:27:05,357 --> 00:27:08,677
A telecommunications provider
exemplified this struggle when
508
00:27:08,756 --> 00:27:11,701
their data science team
perfectly executed on their
509
00:27:11,841 --> 00:27:15,123
strategic commitment to develop
sophisticated customer
510
00:27:15,185 --> 00:27:16,170
segmentation models.
511
00:27:17,201 --> 00:27:20,248
The models were technically
impressive, statistically sound,
512
00:27:20,591 --> 00:27:23,123
and delivered on schedule.
However, because the team hadn't
513
00:27:23,170 --> 00:27:25,670
aligned their Strategy with the
organization's primary
514
00:27:25,732 --> 00:27:29,319
competitive challenge, reducing
network infrastructure costs.
515
00:27:30,120 --> 00:27:33,665
The sophisticated segmentation
work generated minimal business
516
00:27:33,723 --> 00:27:35,665
value despite being a technical
success.
517
00:27:36,587 --> 00:27:40,368
For smaller data science teams,
these strategic challenges often
518
00:27:40,454 --> 00:27:44,040
manifest as whiplash-inducing
priority shifts. A three-person
519
00:27:44,071 --> 00:27:47,430
data team at a logistics startup
found themselves ricocheting
520
00:27:47,477 --> 00:27:50,352
between commitments to build
predictive maintenance
521
00:27:50,384 --> 00:27:54,821
capabilities and enhance
customer-facing analytics.
522
00:27:55,505 --> 00:27:59,390
Because different executives had
different visions of how data
523
00:27:59,429 --> 00:28:00,769
science should create value.
524
00:28:02,191 --> 00:28:05,394
Without a consistent strategic
direction that the organization
525
00:28:05,457 --> 00:28:08,800
had collectively endorsed, the
team's behavior became reactive
526
00:28:08,980 --> 00:28:12,394
rather than strategic. At the
enterprise scale, these
527
00:28:12,457 --> 00:28:15,378
challenges can create strategic
fragmentation.
528
00:28:15,832 --> 00:28:19,988
A global manufacturing company
with data scientists embedded
529
00:28:20,050 --> 00:28:23,394
across multiple business units
discovered that each team had
530
00:28:23,425 --> 00:28:25,479
developed different and
sometimes contradictory
531
00:28:25,539 --> 00:28:29,162
behavioral commitments. Some
prioritized algorithmic
532
00:28:29,244 --> 00:28:34,268
sophistication, others focused
on stakeholder partnership, and
533
00:28:34,330 --> 00:28:36,534
still others emphasized
production engineering
534
00:28:36,588 --> 00:28:37,073
excellence.
535
00:28:38,174 --> 00:28:40,721
When these teams needed to
collaborate on cross-functional
536
00:28:40,752 --> 00:28:44,330
initiatives, these different
behavioral patterns created
537
00:28:44,565 --> 00:28:48,065
significant friction and
inefficiency. The experimental
538
00:28:48,143 --> 00:28:51,784
nature of data science work
amplifies these strategic
539
00:28:51,846 --> 00:28:56,510
difficulties. Unlike departments
with predictable workflows and
540
00:28:56,651 --> 00:29:00,491
outcomes, data teams engage in
work with inherently uncertain
541
00:29:00,573 --> 00:29:01,034
results.
542
00:29:01,534 --> 00:29:05,690
Models may not achieve expected
accuracy, data quality issues
543
00:29:05,870 --> 00:29:10,127
might emerge midway through
projects, or analysis might
544
00:29:10,174 --> 00:29:14,237
reveal that initial assumptions
were incorrect. This uncertainty
545
00:29:14,299 --> 00:29:16,877
makes it challenging to
establish consistent behavioral
546
00:29:16,940 --> 00:29:20,721
patterns when the work itself
requires adaptation and course
547
00:29:20,737 --> 00:29:21,143
correction.
548
00:29:22,449 --> 00:29:25,932
A digital native retail company
committed to a behavioral
549
00:29:26,014 --> 00:29:30,158
pattern of delivering model
updates weekly, but found this
550
00:29:30,377 --> 00:29:33,236
commitment impossible to
maintain because some models
551
00:29:33,299 --> 00:29:36,502
required extensive retraining
and validation before
552
00:29:36,526 --> 00:29:37,104
deployment.
553
00:29:37,721 --> 00:29:40,526
Their technical reality
conflicted with their strategic
554
00:29:40,588 --> 00:29:43,791
commitment, creating tension
between quality and consistency,
555
00:29:44,432 --> 00:29:47,557
only when they refined their
Strategy to commit to regular,
556
00:29:47,697 --> 00:29:49,369
risk-appropriate update cycles.
557
00:29:49,745 --> 00:29:51,788
Could they establish a
sustainable pattern that
558
00:29:51,849 --> 00:29:54,052
accommodated the inherent
uncertainty in their work?
559
00:29:54,673 --> 00:29:58,478
Additionally, data science teams
face the challenge of balancing
560
00:29:58,501 --> 00:30:01,829
exploration, discovering new
insights and approaches, with
561
00:30:01,884 --> 00:30:05,063
exploitation. Delivering
reliable value from established
562
00:30:05,123 --> 00:30:05,502
methods.
563
00:30:06,924 --> 00:30:10,129
This dual mandate creates
strategic tension that few other
564
00:30:10,149 --> 00:30:13,293
departments face so acutely.
Marketing might test new
565
00:30:13,372 --> 00:30:17,793
channels, but data science must
often simultaneously explore
566
00:30:17,817 --> 00:30:21,239
entirely new methodologies while
delivering consistent results
567
00:30:21,254 --> 00:30:22,145
from existing ones.
568
00:30:23,098 --> 00:30:25,879
A financial services analytics
team tried to resolve this
569
00:30:25,942 --> 00:30:28,270
tension by assigning different
team members to either
570
00:30:28,426 --> 00:30:31,618
innovation or production work
only to discover that this
571
00:30:31,677 --> 00:30:34,582
created knowledge silos and
inconsistent outputs.
572
00:30:35,843 --> 00:30:39,504
Their revised Strategy committed
instead to a behavior of
573
00:30:39,949 --> 00:30:45,269
time-boxed exploration within
production cycles, allowing all
574
00:30:45,730 --> 00:30:49,363
team members to participate in
both modes while maintaining
575
00:30:49,394 --> 00:30:51,004
coherent delivery patterns.
576
00:30:51,863 --> 00:30:54,457
These strategic challenges
aren't signs of failure. They're
577
00:30:54,488 --> 00:30:57,222
inherent to the position data
science occupies in modern
578
00:30:57,269 --> 00:31:01,081
organizations. The teams that
succeed strategically Recognize
579
00:31:01,121 --> 00:31:04,224
these unique difficulties and
craft strategies that explicitly
580
00:31:04,265 --> 00:31:06,706
account for them rather than
struggling against them.
581
00:31:07,488 --> 00:31:11,831
Learning from R&D Strategic
Lessons for Data Science The
582
00:31:11,855 --> 00:31:14,894
strategic difficulties facing
data science aren't unique in
583
00:31:14,895 --> 00:31:17,613
the corporate landscape. They're
remarkably similar to challenges
584
00:31:17,659 --> 00:31:20,847
that R&D departments have been
solving since the 1950s.
585
00:31:21,784 --> 00:31:25,144
Yet most data leaders overlook
this valuable source of
586
00:31:25,191 --> 00:31:28,550
strategic wisdom, attempting to
build frameworks from scratch
587
00:31:28,988 --> 00:31:32,835
rather than adapt. Proven
approaches. When we examine the
588
00:31:32,976 --> 00:31:35,376
function of research and
development departments across
589
00:31:35,458 --> 00:31:38,243
industries, the parallels with
data science become striking.
590
00:31:38,923 --> 00:31:42,845
Both operate at the intersection
of discovery and practical
591
00:31:42,907 --> 00:31:47,712
application. Both face uncertain
outcomes and timelines. Both
592
00:31:47,775 --> 00:31:49,993
must balance deep technical
expertise with business
593
00:31:50,071 --> 00:31:52,603
relevance. And perhaps most
importantly, both must deliver
594
00:31:52,650 --> 00:31:55,400
innovation while maintaining
enough predictability to satisfy
595
00:31:55,556 --> 00:31:56,556
organizational demands.
596
00:31:57,196 --> 00:32:00,787
This similarity isn't merely
superficial. The strategic
597
00:32:00,867 --> 00:32:04,713
frameworks that have guided R&D
departments through decades of
598
00:32:04,771 --> 00:32:08,717
technological revolution offer
ready-made solutions to many of
599
00:32:08,718 --> 00:32:12,115
the unique challenges data
science teams face today.
600
00:32:12,756 --> 00:32:15,842
Corporate R&D departments
pioneered approaches to managing
601
00:32:15,904 --> 00:32:18,779
innovation portfolios long
before data science entered our
602
00:32:18,826 --> 00:32:22,810
vocabulary. Consider how mature
R&D organizations approach
603
00:32:22,967 --> 00:32:27,013
portfolio management. They don't
view projects as independent
604
00:32:27,076 --> 00:32:30,290
initiatives, but as a
deliberately balanced collection
605
00:32:30,768 --> 00:32:34,050
designed to distribute risk
while maximizing potential
606
00:32:34,089 --> 00:32:34,589
returns.
607
00:32:35,991 --> 00:32:39,593
A typical R&D portfolio might
allocate approximately 70% of
608
00:32:39,608 --> 00:32:42,632
resources toward incremental
improvements to existing
609
00:32:42,694 --> 00:32:47,132
products, 20% toward adjacent
innovations that extend into new
610
00:32:47,210 --> 00:32:51,132
markets or technologies, and 10%
toward transformational
611
00:32:51,272 --> 00:32:54,116
moonshots that could
fundamentally reshape the
612
00:32:54,132 --> 00:32:54,476
business.
613
00:32:56,109 --> 00:32:59,112
One pharmaceutical data science
organization that adopted this
614
00:32:59,273 --> 00:33:01,476
R&D-inspired approach
transformed their strategic
615
00:33:01,534 --> 00:33:02,276
approach completely.
616
00:33:02,874 --> 00:33:06,159
Rather than evaluating each
potential project in isolation,
617
00:33:06,722 --> 00:33:11,722
they classified initiatives as
incremental, improving existing
618
00:33:11,909 --> 00:33:16,816
analytical models, adjacent,
applying proven techniques to
619
00:33:16,862 --> 00:33:21,347
new business domains, or
transformational, exploring
620
00:33:21,409 --> 00:33:25,586
cutting-edge AI methodologies.
With uncertain but potentially
621
00:33:25,687 --> 00:33:26,648
massive returns.
622
00:33:27,951 --> 00:33:31,111
This portfolio view allowed them
to maintain a healthy innovation
623
00:33:31,193 --> 00:33:33,958
pipeline while still delivering
predictable short-term value,
624
00:33:34,318 --> 00:33:37,021
precisely the balance many data
science teams struggle to
625
00:33:37,060 --> 00:33:40,818
achieve. Another core R&D
strategic principle involves
626
00:33:40,896 --> 00:33:42,568
deliberately structuring time
horizons.
627
00:33:42,958 --> 00:33:45,833
Unlike many corporate functions
that operate primarily on
628
00:33:45,943 --> 00:33:50,177
quarterly cycles, sophisticated
R&D organizations simultaneously
629
00:33:50,224 --> 00:33:53,521
manage initiatives across
multiple time horizons, from
630
00:33:53,725 --> 00:33:56,787
immediate tactical improvements
to decade-long fundamental
631
00:33:56,848 --> 00:34:00,430
research. This multi-horizon
approach helps organizations
632
00:34:00,531 --> 00:34:03,457
avoid the common trap of
sacrificing long-term innovation
633
00:34:03,535 --> 00:34:04,879
for short-term deliverables.
634
00:34:05,535 --> 00:34:08,777
A financial services data
science team incorporated this
635
00:34:08,817 --> 00:34:11,504
principle by establishing three
parallel work streams with
636
00:34:11,535 --> 00:34:15,332
different time horizons. One
team focused on immediate
637
00:34:15,410 --> 00:34:17,567
analytical needs with two-week
delivery cycles.
638
00:34:18,004 --> 00:34:21,238
A second team tackled
medium-term innovations with
639
00:34:21,332 --> 00:34:24,951
quarterly objectives. A third
small team explored emerging
640
00:34:24,990 --> 00:34:27,914
technologies and methodologies
with annual goals and
641
00:34:27,933 --> 00:34:30,394
lightweight accountability
structures. Rather than
642
00:34:30,476 --> 00:34:33,922
competing for resources, these
teams operated as a coherent
643
00:34:33,976 --> 00:34:37,641
ecosystem, each reinforcing the
other's work while delivering
644
00:34:37,680 --> 00:34:39,484
value across different
timescales.
645
00:34:40,109 --> 00:34:42,609
R&D organizations have also
mastered the art of risk
646
00:34:42,703 --> 00:34:45,187
balancing through their
strategic approaches. They
647
00:34:45,266 --> 00:34:49,187
recognize that innovation
inherently involves failure, but
648
00:34:49,250 --> 00:34:52,000
they make this palatable to the
broader organization by
649
00:34:52,062 --> 00:34:55,551
structuring. How and when those
failures occur.
650
00:34:56,853 --> 00:35:00,102
Early-stage ideas face rigorous
but appropriate testing designed
651
00:35:00,121 --> 00:35:03,430
to quickly eliminate non-viable
concepts before significant
652
00:35:03,469 --> 00:35:06,987
investment occurs. As concepts
prove themselves, they receive
653
00:35:07,108 --> 00:35:09,889
progressively more resources and
increasingly stringent
654
00:35:09,928 --> 00:35:12,893
evaluation. A technology
company's data science division
655
00:35:12,932 --> 00:35:15,877
applied this staged funding
approach to their predictive
656
00:35:15,917 --> 00:35:16,854
modeling initiatives.
657
00:35:17,854 --> 00:35:21,479
Initial concepts received
minimal resources but faced
658
00:35:21,713 --> 00:35:24,792
weekly viability checks. Models
that demonstrated promise
659
00:35:24,838 --> 00:35:27,792
graduated to more substantial
funding with monthly evaluation
660
00:35:27,854 --> 00:35:30,448
cycles. Only proven approaches
that cleared these hurdles
661
00:35:30,495 --> 00:35:32,713
received full production
implementation resources.
662
00:35:32,948 --> 00:35:36,111
This staged approach... Allowed
the team to explore dozens of
663
00:35:36,171 --> 00:35:39,755
potential innovations while
focusing substantial resources
664
00:35:39,994 --> 00:35:42,841
only on approaches with
demonstrated potential, a
665
00:35:42,857 --> 00:35:46,201
dramatic improvement over their
previous all-or-nothing funding
666
00:35:46,240 --> 00:35:46,497
model.
667
00:35:47,404 --> 00:35:50,138
Perhaps the most valuable
strategic framework that data
668
00:35:50,201 --> 00:35:53,607
science can borrow from R&D
involves how these departments
669
00:35:53,966 --> 00:35:56,591
handle the fundamental tension
between exploration and
670
00:35:56,638 --> 00:35:59,888
exploitation. R&D leaders
understand that organizations
671
00:36:00,138 --> 00:36:02,242
need both. Breakthrough
innovations and continuous
672
00:36:02,283 --> 00:36:03,763
improvements to existing
offerings.
673
00:36:04,183 --> 00:36:07,929
Rather than treating this as a
binary choice, sophisticated R&D
674
00:36:08,046 --> 00:36:11,050
departments create structural
solutions that accommodate both
675
00:36:11,128 --> 00:36:14,714
needs. A healthcare analytics
organization that adopted this
676
00:36:14,777 --> 00:36:18,746
principle created distinct teams
with different behavioral
677
00:36:18,793 --> 00:36:19,277
commitments.
678
00:36:19,902 --> 00:36:23,527
Their exploration team operated
with greater autonomy, longer
679
00:36:23,558 --> 00:36:27,230
time horizons, and acceptance of
higher failure rates. Their
680
00:36:27,339 --> 00:36:30,785
exploitation team focused on
refining and scaling. Proven
681
00:36:30,805 --> 00:36:33,128
approaches with more structured
processes and delivery
682
00:36:33,187 --> 00:36:33,888
expectations.
683
00:36:34,468 --> 00:36:37,792
Critically, they established
deliberate transfer mechanisms
684
00:36:37,831 --> 00:36:40,835
between these teams, ensuring
successful explorations
685
00:36:41,335 --> 00:36:44,898
eventually became reliable
exploitations. R&D departments
686
00:36:44,921 --> 00:36:47,663
have also pioneered approaches
to measuring outcomes under
687
00:36:47,742 --> 00:36:51,538
uncertainty, another challenge
that plagues data science teams.
688
00:36:52,445 --> 00:36:55,507
Rather than attempting to
predict precise ROI for
689
00:36:55,617 --> 00:36:59,185
innovative initiatives, mature
R&D organizations establish
690
00:36:59,285 --> 00:37:02,528
learning objectives and progress
metrics that acknowledge the
691
00:37:02,589 --> 00:37:04,852
inherent uncertainty of
discovery work.
692
00:37:06,051 --> 00:37:09,313
A manufacturing company's data
science team shifted from
693
00:37:09,438 --> 00:37:12,477
attempting to quantify exact
financial returns for
694
00:37:12,618 --> 00:37:15,415
early-stage machine learning
initiatives to measuring
695
00:37:15,696 --> 00:37:19,071
learning velocity and knowledge
acquisition. For projects in the
696
00:37:19,072 --> 00:37:22,915
discovery phase, success metrics
included hypothesis validation
697
00:37:22,993 --> 00:37:25,930
rates, dataset quality
improvements, and reduction in
698
00:37:25,993 --> 00:37:28,055
predictive errors, not direct...
699
00:37:28,137 --> 00:37:31,358
Business outcomes. As
initiatives matured, measurement
700
00:37:31,438 --> 00:37:34,139
shifted toward operational
metrics and ultimately financial
701
00:37:34,198 --> 00:37:38,358
impact. This staged measurement
approach aligned perfectly with
702
00:37:38,381 --> 00:37:42,256
the inherent uncertainty of data
innovation. The strategic
703
00:37:42,342 --> 00:37:45,467
sophistication of R&D extends to
how these departments handle
704
00:37:45,499 --> 00:37:46,014
their talent.
705
00:37:46,124 --> 00:37:49,249
They recognize that innovation
requires different skills and
706
00:37:49,264 --> 00:37:51,827
working styles than
optimization, and they structure
707
00:37:51,858 --> 00:37:55,795
roles accordingly. Some R&D
staff excel at exploratory
708
00:37:55,858 --> 00:37:59,685
research while others specialize
in translating discoveries into
709
00:37:59,763 --> 00:38:03,427
practical applications. A retail
data science team applied this
710
00:38:03,485 --> 00:38:06,173
principle by creating
differentiated roles that
711
00:38:06,212 --> 00:38:07,970
acknowledge these distinct skill
sets.
712
00:38:08,931 --> 00:38:11,978
Some data scientists focused on
experimental applications and
713
00:38:12,032 --> 00:38:15,040
novel analytical approaches,
while others specialized in
714
00:38:15,134 --> 00:38:18,478
hardening promising techniques
into reliable production-grade
715
00:38:18,509 --> 00:38:18,978
solutions.
716
00:38:19,931 --> 00:38:23,071
By recognizing these as
complementary rather than
717
00:38:23,149 --> 00:38:26,345
competing approaches, they
created career paths. That
718
00:38:26,465 --> 00:38:30,507
valued both innovation and
implementation expertise. What
719
00:38:30,566 --> 00:38:34,164
makes these R&D strategic
approaches so valuable to data
720
00:38:34,226 --> 00:38:37,304
science is how directly they
address the unique challenges we
721
00:38:37,406 --> 00:38:38,265
identified earlier.
722
00:38:39,367 --> 00:38:42,343
The portfolio approach provides
a framework for maintaining
723
00:38:42,390 --> 00:38:45,562
consistency across diverse
initiatives. Multi-horizon
724
00:38:45,625 --> 00:38:48,515
planning offers a path to
coherence when balancing short-
725
00:38:48,547 --> 00:38:51,450
and long-term objectives. And
the structured approach to
726
00:38:51,630 --> 00:38:54,651
exploration and exploitation
helps maintain alignment between
727
00:38:54,733 --> 00:38:57,034
innovative impulses and
organizational needs.
728
00:38:58,636 --> 00:39:01,917
Best of all, these strategic
approaches come with decades of
729
00:39:01,964 --> 00:39:04,425
refinement and practical
validation across industries.
730
00:39:04,886 --> 00:39:07,886
Data science leaders don't need
to invent strategic frameworks
731
00:39:07,932 --> 00:39:10,964
from scratch. They can adapt
proven approaches from a
732
00:39:10,995 --> 00:39:13,807
discipline that has faced
similar challenges for
733
00:39:13,854 --> 00:39:14,511
generations.
734
00:39:15,479 --> 00:39:19,493
Applying Strategy to AI and ML
teams. Adapting proven
735
00:39:19,573 --> 00:39:22,514
frameworks is essential, but
what happens when your team
736
00:39:22,574 --> 00:39:25,375
ventures into the uncharted
territory of artificial
737
00:39:25,414 --> 00:39:30,219
intelligence? Despite borrowing
strategic wisdom from R&D, I
738
00:39:30,234 --> 00:39:34,437
discovered, through painful
experience, that AI and ML teams
739
00:39:34,898 --> 00:39:38,070
face unique challenges that
require fundamentally different
740
00:39:38,164 --> 00:39:40,430
behavioral commitments than
other data disciplines.
741
00:39:41,070 --> 00:39:44,476
My first leadership role over an
AI team taught me this lesson
742
00:39:44,492 --> 00:39:47,914
the hard way. We had implemented
a data science Strategy that
743
00:39:48,039 --> 00:39:50,744
worked brilliantly for our
analytics projects, clear
744
00:39:50,785 --> 00:39:53,471
timelines, defined deliverables,
and structured evaluation
745
00:39:53,510 --> 00:39:56,818
metrics. But when we applied the
same approach to our machine
746
00:39:56,857 --> 00:39:59,678
learning initiatives, we hit
unexpected roadblocks that no
747
00:39:59,679 --> 00:39:59,982
one had ever seen.
748
00:40:00,120 --> 00:40:03,544
Amount of planning could solve.
The core issue became evident.
749
00:40:04,263 --> 00:40:07,548
AI and machine learning work
operates under fundamentally
750
00:40:07,587 --> 00:40:10,552
different conditions than
traditional analytics. The
751
00:40:10,607 --> 00:40:13,912
uncertainty isn't just a factor,
it's the dominant condition.
752
00:40:14,294 --> 00:40:17,576
While analytics teams can often
predict how long it will take to
753
00:40:17,638 --> 00:40:21,576
extract insights from existing
data, AI teams are navigating a
754
00:40:21,607 --> 00:40:24,982
landscape where the very
feasibility of a solution might
755
00:40:25,029 --> 00:40:29,013
remain unknown until significant
resources have been invested.
756
00:40:29,760 --> 00:40:33,603
This unpredictability stems from
three characteristics unique to
757
00:40:33,664 --> 00:40:37,746
AI ML work. First, the search
space for solutions is
758
00:40:38,285 --> 00:40:41,191
exponentially larger, with
countless architectural
759
00:40:41,230 --> 00:40:44,957
decisions, hyperparameter
configurations, and data
760
00:40:45,035 --> 00:40:47,738
transformations that might
unlock performance
761
00:40:47,754 --> 00:40:48,238
breakthroughs.
762
00:40:49,332 --> 00:40:52,660
Second, the relationship between
input and output is often
763
00:40:52,847 --> 00:40:56,644
non-linear. Small changes can
produce dramatic improvements or
764
00:40:56,691 --> 00:40:57,972
failures with little warning.
765
00:40:59,352 --> 00:41:02,593
Third, the infrastructure
requirements evolve rapidly,
766
00:41:03,073 --> 00:41:06,073
sometimes necessitating complete
rebuilds of systems that worked
767
00:41:06,155 --> 00:41:09,675
perfectly just months earlier. A
Strategy designed for business
768
00:41:09,714 --> 00:41:13,097
intelligence or even traditional
statistical modeling simply
769
00:41:13,136 --> 00:41:15,401
doesn't accommodate these
realities. It's like trying to
770
00:41:15,448 --> 00:41:18,433
use a roadmap for ocean
navigation. The tools and
771
00:41:18,434 --> 00:41:20,839
assumptions fundamentally don't
match the territory.
772
00:41:22,214 --> 00:41:24,433
Consider what happened at a
computer vision startup I
773
00:41:24,464 --> 00:41:28,215
consulted for. Their initial
Strategy emphasized consistent
774
00:41:28,274 --> 00:41:31,337
weekly progress demonstrations
to investors. This worked
775
00:41:31,419 --> 00:41:33,997
perfectly for their dashboard
and analytics features, but
776
00:41:34,059 --> 00:41:37,465
created immense pressure on
their object detection team, who
777
00:41:37,504 --> 00:41:40,989
experienced weeks of seemingly
no progress, followed by sudden
778
00:41:41,067 --> 00:41:41,606
breakthroughs.
779
00:41:42,145 --> 00:41:45,129
The weekly demonstration cadence
pushed the team toward
780
00:41:45,254 --> 00:41:48,317
incremental improvements to show
something, rather than the
781
00:41:48,333 --> 00:41:51,692
exploratory work needed for
significant advances. The
782
00:41:51,739 --> 00:41:53,661
solution was a complete
strategic reframing.
783
00:41:54,484 --> 00:41:57,645
Rather than committing to weekly
visual progress, they shifted to
784
00:41:57,646 --> 00:42:00,606
a behavioral pattern of
maintaining comprehensive
785
00:42:00,645 --> 00:42:03,786
experiment logs and weekly
research reviews focused on
786
00:42:03,864 --> 00:42:06,966
learning rather than results.
This single strategic shift
787
00:42:07,286 --> 00:42:10,325
transformed their team's
performance, ultimately leading
788
00:42:10,380 --> 00:42:14,114
to a technical breakthrough that
became their core competitive
789
00:42:14,208 --> 00:42:14,755
advantage.
790
00:42:15,552 --> 00:42:18,708
This experience highlights why
AI and ML teams need unique
791
00:42:18,723 --> 00:42:22,597
behavioral commitments. While an
analytics team might thrive with
792
00:42:22,619 --> 00:42:26,203
a Strategy centered on rapid
iteration with stakeholders, ML
793
00:42:26,261 --> 00:42:29,664
teams often need extended
periods of technical exploration
794
00:42:30,008 --> 00:42:32,265
before stakeholder involvement
becomes valuable.
795
00:42:32,789 --> 00:42:35,687
The strategic behaviors that
create competitive advantage
796
00:42:36,187 --> 00:42:40,172
differ significantly. Successful
AI and ML strategies typically
797
00:42:40,219 --> 00:42:43,594
include specific behavioral
commitments in four key areas.
798
00:42:44,140 --> 00:42:45,844
First, experimentation cadence.
799
00:42:46,234 --> 00:42:49,905
How teams structure their
learning loops. One enterprise
800
00:42:49,985 --> 00:42:52,527
AI team I worked with committed
to running at least 20
801
00:42:52,647 --> 00:42:55,709
architecture experiments weekly
while documenting results in a
802
00:42:55,732 --> 00:42:58,772
standardized format. This
seemingly simple behavior
803
00:42:59,193 --> 00:43:02,615
created an invaluable knowledge
repository that accelerated
804
00:43:02,678 --> 00:43:04,959
their progress significantly
compared to competitors.
805
00:43:05,615 --> 00:43:09,178
Second, knowledge distribution
patterns, how insights flow
806
00:43:09,240 --> 00:43:12,272
between team members. A natural
language processing startup
807
00:43:12,553 --> 00:43:15,428
adopted a behavioral commitment
to pair programming for all
808
00:43:15,475 --> 00:43:18,615
model development work, despite
the apparent inefficiency.
809
00:43:19,564 --> 00:43:23,449
This strategic behavior resulted
in dramatically reduced
810
00:43:23,609 --> 00:43:27,191
knowledge silos and more robust
architecture decisions that
811
00:43:27,312 --> 00:43:28,375
competitors couldn't match.
812
00:43:29,297 --> 00:43:34,679
Third, failure tolerance
frameworks. How teams respond
813
00:43:35,062 --> 00:43:38,281
when approaches don't work. One
autonomous systems team
814
00:43:38,750 --> 00:43:41,672
committed to celebrating
valuable failures with formal
815
00:43:41,718 --> 00:43:44,875
recognition for experiments that
disproved promising hypotheses,
816
00:43:44,968 --> 00:43:46,297
saving future resources.
817
00:43:47,265 --> 00:43:49,904
This behavioral commitment
transformed how they approached
818
00:43:49,964 --> 00:43:53,005
risk and accelerated their
overall progress forth.
819
00:43:53,544 --> 00:43:57,122
Deployment bridges. How research
insights transition to
820
00:43:57,185 --> 00:43:58,044
production systems.
821
00:43:58,364 --> 00:44:02,403
A healthcare AI team implemented
a model shadowing period where
822
00:44:02,591 --> 00:44:06,528
new algorithms ran parallel to
existing systems for extended
823
00:44:06,575 --> 00:44:09,888
evaluation before taking
control. This strategic behavior
824
00:44:09,950 --> 00:44:13,091
built trust with clinical
partners and enabled more
825
00:44:13,122 --> 00:44:16,638
aggressive innovation than
competitors who faced resistance
826
00:44:16,685 --> 00:44:17,528
to implementation.
827
00:44:18,444 --> 00:44:21,387
These strategic behaviors
contrast sharply with those that
828
00:44:21,468 --> 00:44:24,809
work for analytics teams. Where
analytics teams might commit to
829
00:44:24,950 --> 00:44:28,934
business value in every sprint,
ML teams often need behavioral
830
00:44:28,997 --> 00:44:31,841
commitments like exploring at
least three novel approaches
831
00:44:31,895 --> 00:44:32,997
before optimization.
832
00:44:33,942 --> 00:44:37,380
Analytics teams can often commit
to fixed delivery dates, while
833
00:44:37,598 --> 00:44:41,114
ML teams need flexible
development cycles with rigorous
834
00:44:41,161 --> 00:44:41,942
evaluation gates.
835
00:44:42,801 --> 00:44:45,833
The contrast becomes even more
apparent in how these teams
836
00:44:46,255 --> 00:44:48,731
approach. Stakeholder
relationships. A financial
837
00:44:48,771 --> 00:44:52,096
services AI team, I advised,
struggled until they shifted
838
00:44:52,139 --> 00:44:55,201
from the analytics-inspired
behavior of demonstrating
839
00:44:55,280 --> 00:44:58,928
incremental progress to
stakeholders bi-weekly to
840
00:44:59,416 --> 00:45:03,120
educating stakeholders on
research processes and
841
00:45:03,239 --> 00:45:05,801
establishing quarterly
evaluation points.
842
00:45:07,407 --> 00:45:10,969
This strategic shift created the
space they needed for meaningful
843
00:45:11,008 --> 00:45:13,727
exploration while maintaining
organizational trust.
844
00:45:14,891 --> 00:45:17,297
Another critical difference
appears in technical debt
845
00:45:17,360 --> 00:45:17,813
management.
846
00:45:18,688 --> 00:45:22,219
Traditional analytics teams can
often defer maintenance work in
847
00:45:22,282 --> 00:45:26,094
favor of new features. For ML
teams, algorithm maintenance is
848
00:45:26,126 --> 00:45:29,560
existential. Models degrade as
the world changes. A retail
849
00:45:29,600 --> 00:45:33,264
recommendation engine team
committed to allocating 30% of
850
00:45:33,284 --> 00:45:36,608
resources to continuous
evaluation and retraining, which
851
00:45:36,666 --> 00:45:38,471
competitors viewed as
inefficient.
852
00:45:39,549 --> 00:45:42,416
This strategic behavior
ultimately proved decisive when
853
00:45:42,495 --> 00:45:45,776
market patterns shifted during
the pandemic, and their models
854
00:45:45,854 --> 00:45:49,276
adapted while competitors
failed. The distinction extends
855
00:45:49,277 --> 00:45:52,166
to talent development, too. A
computer vision team at a
856
00:45:52,198 --> 00:45:55,198
manufacturing company struggled
until they revised their
857
00:45:55,245 --> 00:45:57,541
Strategy to include a behavioral
commitment.
858
00:45:57,956 --> 00:46:01,759
Of dedicating 20% of senior
researchers' time to internal
859
00:46:01,779 --> 00:46:04,922
knowledge transfer. This
apparently costly behavior
860
00:46:05,023 --> 00:46:07,484
became their competitive
advantage as they could rapidly
861
00:46:07,547 --> 00:46:11,172
train new team members while
competitors fought over a
862
00:46:11,312 --> 00:46:14,945
limited pool of experienced
specialists. The research
863
00:46:15,007 --> 00:46:18,070
production tension requires
particularly careful strategic
864
00:46:18,132 --> 00:46:18,632
navigation.
865
00:46:19,132 --> 00:46:21,554
One autonomous vehicle company
committed to maintaining
866
00:46:21,664 --> 00:46:24,617
parallel research and production
implementations of key systems
867
00:46:24,956 --> 00:46:27,616
With explicit processes for
migrating innovations between
868
00:46:27,657 --> 00:46:31,098
them, this behavioral pattern
allowed them to simultaneously
869
00:46:31,176 --> 00:46:33,837
pursue cutting-edge research
while maintaining reliable
870
00:46:33,915 --> 00:46:36,962
production systems, a balance
many competitors failed to
871
00:46:36,977 --> 00:46:40,758
achieve. Even the approach to
failure requires different
872
00:46:40,938 --> 00:46:41,954
strategic behaviors.
873
00:46:42,860 --> 00:46:46,782
An NLP startup adopted a bounty
system for identifying failure
874
00:46:46,797 --> 00:46:50,297
modes in production models with
dedicated time allocations for
875
00:46:50,360 --> 00:46:54,422
addressing discoveries. This
strategic behavior created
876
00:46:55,008 --> 00:46:59,554
Resilient systems that
outperformed more academically
877
00:46:59,831 --> 00:47:03,718
advanced competitors, whose
models failed in unexpected
878
00:47:03,820 --> 00:47:04,835
real-world conditions.
879
00:47:05,398 --> 00:47:08,539
These examples demonstrate why
applying general data science
880
00:47:08,578 --> 00:47:12,749
strategies to AI and ML teams
frequently fails. The unique
881
00:47:12,781 --> 00:47:14,765
characteristics of machine
learning work, its
882
00:47:14,812 --> 00:47:17,937
exploration-heavy nature,
non-linear progress patterns,
883
00:47:17,968 --> 00:47:20,749
and complex deployment
challenges, require tailored
884
00:47:20,953 --> 00:47:24,093
strategic approaches focused on
specific behavioral commitments.
885
00:47:24,840 --> 00:47:26,922
The common Strategy mistake
leaders make.
886
00:47:27,502 --> 00:47:31,448
Behavioral patterns that drive
AI success highlight the
887
00:47:31,467 --> 00:47:33,967
critical difference between
planning and Strategy, a
888
00:47:34,006 --> 00:47:37,014
distinction most leaders miss
entirely. What if the reason
889
00:47:37,389 --> 00:47:41,139
most data science strategies
fail isn't about execution at
890
00:47:41,201 --> 00:47:44,858
all but stems from a fundamental
misunderstanding that happens
891
00:47:44,920 --> 00:47:46,920
the moment an executive makes
the request?
892
00:47:47,936 --> 00:47:51,545
Picture this scenario. A VP
calls you into their office and
893
00:47:51,608 --> 00:47:55,531
says, We need a data science
Strategy for our organization.
894
00:47:55,771 --> 00:47:57,853
Can you have something on my
desk by the end of the month?
895
00:47:59,775 --> 00:48:03,639
You nod confidently, but as you
walk away, a wave of uncertainty
896
00:48:03,717 --> 00:48:04,021
hits.
897
00:48:05,264 --> 00:48:08,342
What exactly are they asking
for? With limited guidance, most
898
00:48:08,381 --> 00:48:12,006
leaders default to creating what
they believe executives want to
899
00:48:12,146 --> 00:48:16,131
see. Detailed timelines,
technology selections, and
900
00:48:16,334 --> 00:48:17,287
project roadmaps.
901
00:48:18,334 --> 00:48:21,537
This scenario plays out
thousands of times across
902
00:48:22,136 --> 00:48:25,876
organizations worldwide, and it
triggers the most common and
903
00:48:25,896 --> 00:48:29,476
damaging mistake in data science
leadership, misinterpreting the
904
00:48:29,519 --> 00:48:32,917
request for Strategy as a
request for a comprehensive plan
905
00:48:32,918 --> 00:48:33,699
of activities.
906
00:48:34,660 --> 00:48:38,183
The distinction might seem
subtle, but the consequences are
907
00:48:38,199 --> 00:48:38,621
profound.
908
00:48:39,980 --> 00:48:43,855
When executives request a data
science Strategy, they typically
909
00:48:43,886 --> 00:48:47,183
expect a document that bears
little resemblance to what would
910
00:48:47,199 --> 00:48:51,204
actually help the team succeed.
They anticipate receiving an
911
00:48:51,224 --> 00:48:55,266
impressive slide deck filled
with timelines for implementing
912
00:48:55,309 --> 00:48:59,712
specific technologies, forecasts
of resource requirements, and
913
00:48:59,751 --> 00:49:01,657
promises of specific
deliverables.
914
00:49:02,259 --> 00:49:05,555
What they should receive instead
is a clear articulation of how
915
00:49:05,579 --> 00:49:08,259
the team will behave differently
from competitors to create
916
00:49:08,274 --> 00:49:11,337
sustainable advantage. I
witnessed this mistake firsthand
917
00:49:11,477 --> 00:49:14,180
at a major telecommunications
company where the newly
918
00:49:14,227 --> 00:49:18,009
appointed chief data officer
spent three months developing
919
00:49:18,055 --> 00:49:21,548
what he called a comprehensive
data science Strategy.
920
00:49:22,368 --> 00:49:25,769
The impressive 60-page document
detailed every project the team
921
00:49:25,851 --> 00:49:29,030
would undertake over the next
two years, the technologies they
922
00:49:29,046 --> 00:49:31,632
would implement, and the
projected ROI for each
923
00:49:31,687 --> 00:49:35,210
initiative. Leadership approved
it enthusiastically, and the
924
00:49:35,226 --> 00:49:37,929
team began execution
immediately. Six months later,
925
00:49:37,944 --> 00:49:39,757
the Strategy was effectively
abandoned.
926
00:49:40,616 --> 00:49:43,335
Market conditions had shifted,
executive priorities had
927
00:49:43,398 --> 00:49:46,413
changed, and several key
technologies mentioned in the
928
00:49:46,414 --> 00:49:50,918
document had been superseded. By
newer alternatives. The document
929
00:49:50,959 --> 00:49:54,043
provided no guidance on how to
adapt because it had focused
930
00:49:54,121 --> 00:49:57,406
entirely on what the team would
do, rather than how they would
931
00:49:57,469 --> 00:49:59,766
make decisions and behave to
create advantage.
932
00:50:00,513 --> 00:50:03,617
This contrasts sharply with a
mid-size insurance company whose
933
00:50:03,656 --> 00:50:06,180
data science leader took a
different approach. When asked
934
00:50:06,219 --> 00:50:10,086
for a Strategy, she delivered a
concise five-page document that
935
00:50:10,125 --> 00:50:12,562
barely mentioned specific
projects or technologies.
936
00:50:12,726 --> 00:50:16,562
Instead, it articulated clear
behavioral commitments, how they
937
00:50:16,594 --> 00:50:19,578
would evaluate investment
opportunities, their approach to
938
00:50:19,609 --> 00:50:22,875
balancing exploratory versus
exploitative work, and their
939
00:50:22,922 --> 00:50:25,953
decision criteria for pursuing
or abandoning initiatives.
940
00:50:27,219 --> 00:50:31,246
When market conditions shifted,
this team adapted their project
941
00:50:31,326 --> 00:50:34,531
portfolio while maintaining
consistent decision-making
942
00:50:34,589 --> 00:50:37,273
patterns that continued to
create advantage.
943
00:50:38,652 --> 00:50:41,574
The mistake stems from a
fundamental misconception of
944
00:50:41,613 --> 00:50:45,199
what constitutes Strategy. Most
data science leaders, especially
945
00:50:45,222 --> 00:50:48,621
those without formal Strategy
training, equate Strategy with
946
00:50:48,699 --> 00:50:51,964
detailed planning. They believe
that the more comprehensive and
947
00:50:52,011 --> 00:50:54,746
specific their plan, the more
strategic it appears.
948
00:50:55,074 --> 00:50:58,167
This leads to documents that
impress initially but provide
949
00:50:58,277 --> 00:51:01,138
minimal actual strategic
guidance. A strategic approach
950
00:51:01,179 --> 00:51:04,283
would instead focus on questions
like, what types of problems
951
00:51:04,302 --> 00:51:06,908
will we prioritize? How will we
decide between competing
952
00:51:06,924 --> 00:51:10,072
opportunities? What criteria
will guide our investment
953
00:51:10,088 --> 00:51:10,611
decisions?
954
00:51:11,666 --> 00:51:15,088
How frequently will we evaluate
results and pivot? How will we
955
00:51:15,119 --> 00:51:17,931
balance immediate needs against
long-term capability building?
956
00:51:19,010 --> 00:51:21,853
At an e-commerce company I
consulted with, the data science
957
00:51:21,854 --> 00:51:24,463
director initially presented a
Strategy that specified
958
00:51:24,525 --> 00:51:26,478
implementing a customer
segmentation model in Q1.
959
00:51:27,221 --> 00:51:30,264
Developing a recommendation
engine in Q2, and launching
960
00:51:30,424 --> 00:51:33,946
personalized marketing
automation in Q3. When asked how
961
00:51:33,989 --> 00:51:36,594
these activities would create
advantage relative to
962
00:51:36,610 --> 00:51:39,594
competitors who were pursuing
similar projects, he struggled
963
00:51:39,595 --> 00:51:40,032
to answer.
964
00:51:40,477 --> 00:51:44,078
The revised Strategy shifted
focus to behavioral commitments,
965
00:51:44,625 --> 00:51:47,407
running twice as many customer
experiments as competitors,
966
00:51:48,078 --> 00:51:52,078
making go-no-go decisions within
one week of results, and
967
00:51:52,125 --> 00:51:56,063
maintaining a consistent 30% of
resources dedicated to platform
968
00:51:56,157 --> 00:51:58,783
improvements, rather than
immediate applications.
969
00:51:59,364 --> 00:52:02,108
This Strategy proved resilient
through multiple business cycles
970
00:52:02,127 --> 00:52:04,889
and leadership changes because
it focused on how the team would
971
00:52:04,928 --> 00:52:09,475
behave rather than specific
deliverables. Two years later,
972
00:52:09,975 --> 00:52:12,373
not a single project from the
original plan remained
973
00:52:12,436 --> 00:52:15,905
unchanged, but the behavioral
patterns continued to generate
974
00:52:15,967 --> 00:52:16,998
competitive advantage.
975
00:52:17,155 --> 00:52:21,108
The mistake becomes increasingly
damaging as organizations grow
976
00:52:21,202 --> 00:52:24,418
and contexts evolve. A small
team might temporarily succeed
977
00:52:24,498 --> 00:52:27,320
with a project-focused approach
due to tight communication and
978
00:52:27,382 --> 00:52:30,804
shared implicit understanding.
But as teams expand, the absence
979
00:52:30,805 --> 00:52:33,206
of clear behavioral commitments
leads to inconsistent
980
00:52:33,230 --> 00:52:36,230
decision-making, resource
allocation conflicts, and
981
00:52:36,308 --> 00:52:37,074
strategic drift.
982
00:52:38,034 --> 00:52:41,878
A global financial services firm
experienced this firsthand as
983
00:52:41,909 --> 00:52:44,784
their data science function grew
from 15 to over 100
984
00:52:44,800 --> 00:52:48,378
professionals in 18 months. The
original Strategy document
985
00:52:48,456 --> 00:52:51,066
focused on specific analytical
models and technology
986
00:52:51,128 --> 00:52:51,847
implementations.
987
00:52:52,213 --> 00:52:56,117
Provided no guidance on how to
prioritize competing requests or
988
00:52:56,156 --> 00:52:59,340
balance innovation against
reliability. By the time they
989
00:52:59,379 --> 00:53:02,360
realized the issue, they had
dozens of disconnected
990
00:53:02,445 --> 00:53:05,789
initiatives with no coherent
pattern of behavior, resulting
991
00:53:05,805 --> 00:53:08,430
in organizational frustration
and wasted investment.
992
00:53:09,508 --> 00:53:11,758
Reframing the request for a data
science Strategy can
993
00:53:11,789 --> 00:53:14,680
fundamentally change outcomes.
When an executive asks for a
994
00:53:14,681 --> 00:53:17,664
Strategy, skilled leaders
clarify whether they're seeking
995
00:53:17,665 --> 00:53:20,799
a plan of activities or a
definition of how the team will
996
00:53:20,839 --> 00:53:24,581
behave to create advantage. This
simple clarification often
997
00:53:24,643 --> 00:53:27,725
surprises executives who haven't
considered the distinction,
998
00:53:28,069 --> 00:53:30,264
opening the door for a more
meaningful strategic
999
00:53:30,327 --> 00:53:30,866
conversation.
1000
00:53:31,811 --> 00:53:34,155
A healthcare analytics leader
handled this effectively when
1001
00:53:34,210 --> 00:53:37,218
asked for a Strategy by the CFO.
Instead of immediately producing
1002
00:53:37,219 --> 00:53:39,796
a document, she scheduled a
discussion to understand what
1003
00:53:39,843 --> 00:53:42,483
competitive challenges the
organization faced and how data
1004
00:53:42,514 --> 00:53:44,358
science could contribute to
addressing them.
1005
00:53:45,281 --> 00:53:48,164
This conversation revealed that
the CFO was primarily concerned
1006
00:53:48,203 --> 00:53:50,967
with improving operational
efficiency rather than
1007
00:53:51,026 --> 00:53:54,229
developing cutting-edge
analytical capabilities. Armed
1008
00:53:54,291 --> 00:53:58,252
with this insight, she developed
a Strategy focused on behavioral
1009
00:53:58,330 --> 00:54:00,994
commitments around rapid
implementation of proven
1010
00:54:01,057 --> 00:54:04,174
analytical techniques rather
than exploration of novel
1011
00:54:04,221 --> 00:54:04,737
approaches.
1012
00:54:05,643 --> 00:54:08,580
A pattern of behavior
specifically designed to address
1013
00:54:08,627 --> 00:54:12,705
the organization's actual
competitive needs. This approach
1014
00:54:13,034 --> 00:54:17,544
shifts the strategic focus from
what we will build to how we
1015
00:54:17,624 --> 00:54:18,585
will behave to win.
1016
00:54:19,167 --> 00:54:21,788
It transforms the conversation
from project selection to
1017
00:54:21,847 --> 00:54:25,948
capability building. Rather than
committing to specific outputs
1018
00:54:26,034 --> 00:54:30,112
that may become irrelevant, it
commits to decision patterns and
1019
00:54:30,113 --> 00:54:33,362
behaviors that remain valuable
regardless of how specific
1020
00:54:33,425 --> 00:54:34,253
projects evolve.
1021
00:54:35,768 --> 00:54:38,987
The most effective data science
strategies I've seen have been
1022
00:54:39,503 --> 00:54:42,222
remarkably brief in terms of
specific project commitments,
1023
00:54:42,268 --> 00:54:44,866
but crystal clear about
behavioral patterns. One
1024
00:54:44,886 --> 00:54:47,592
particularly successful example
came from a manufacturing
1025
00:54:47,633 --> 00:54:51,223
company whose entire data
science Strategy could be
1026
00:54:51,844 --> 00:54:54,090
summarized in three behavioral
commitments.
1027
00:54:54,732 --> 00:54:57,814
They would validate all models
with frontline operators before
1028
00:54:57,836 --> 00:55:01,158
deployment, maintain a
consistent four-week cycle from
1029
00:55:01,260 --> 00:55:05,725
concept to initial
implementation, and dedicate 25%
1030
00:55:05,803 --> 00:55:08,904
of capacity to improving
existing solutions rather than
1031
00:55:08,982 --> 00:55:13,123
creating new ones. These simple
principles guided hundreds of
1032
00:55:13,154 --> 00:55:16,326
decisions across dozens of
projects, creating a consistent
1033
00:55:16,420 --> 00:55:19,076
pattern that delivered
measurable competitive
1034
00:55:19,092 --> 00:55:19,592
advantage.
1035
00:55:21,279 --> 00:55:24,869
Strategic thinking for small
data science teams. Those simple
1036
00:55:24,929 --> 00:55:28,329
behavioral patterns created
measurable advantage for large
1037
00:55:28,368 --> 00:55:32,633
organizations. But what about
the small data science team of
1038
00:55:32,711 --> 00:55:35,915
just three people who told me
they were too small to need a
1039
00:55:35,930 --> 00:55:36,368
Strategy?
1040
00:55:37,532 --> 00:55:40,946
They later discovered something
surprising. Strategic thinking
1041
00:55:41,274 --> 00:55:45,977
becomes more critical as team
size decreases, not less. Small
1042
00:55:46,008 --> 00:55:48,930
data science teams face
constraints that make strategic
1043
00:55:48,993 --> 00:55:51,790
thinking seem like a luxury.
When you're a team of two to
1044
00:55:51,821 --> 00:55:54,987
five people. You're constantly
juggling immediate deliverables
1045
00:55:55,026 --> 00:55:56,207
while wearing multiple hats.
1046
00:55:56,709 --> 00:55:58,990
One day you're building models,
the next you're presenting to
1047
00:55:59,010 --> 00:56:02,112
executives, and the day after,
you're troubleshooting
1048
00:56:02,197 --> 00:56:05,213
infrastructure issues. The
pressure to deliver quick wins
1049
00:56:05,260 --> 00:56:08,604
is relentless, with stakeholders
expecting results despite your
1050
00:56:08,605 --> 00:56:12,260
limited resources. The typical
small team operates in perpetual
1051
00:56:12,338 --> 00:56:15,010
reactive mode. A marketing
request comes in Monday,
1052
00:56:15,088 --> 00:56:16,822
followed by a finance priority
on Tuesday.
1053
00:56:17,229 --> 00:56:19,494
Then the CEO sends an urgent
request Wednesday that
1054
00:56:19,526 --> 00:56:23,169
supersedes everything else. With
no bandwidth buffer, Each new
1055
00:56:23,209 --> 00:56:25,992
request creates a ripple effect
that disrupts previous
1056
00:56:26,031 --> 00:56:28,756
commitments. This constant
context switching severely
1057
00:56:28,814 --> 00:56:32,181
limits productivity and makes
focused work nearly impossible.
1058
00:56:32,681 --> 00:56:35,142
When I suggested strategic
thinking to a four-person
1059
00:56:35,221 --> 00:56:38,400
analytics team at a mid-sized
retailer, their leader laughed.
1060
00:56:38,822 --> 00:56:41,650
We barely have time to finish
our dashboards, much less
1061
00:56:41,713 --> 00:56:44,806
develop a formal Strategy
document. His perspective made
1062
00:56:44,822 --> 00:56:48,056
perfect sense. Formal Strategy
processes can be time-consuming.
1063
00:56:48,416 --> 00:56:50,791
But this fundamentally
misunderstands what Strategy
1064
00:56:50,916 --> 00:56:54,141
really entails for small teams.
The paradox is that these very
1065
00:56:54,182 --> 00:56:57,985
constraints make strategic
thinking not a luxury, but an
1066
00:56:58,024 --> 00:56:58,868
absolute necessity.
1067
00:56:59,387 --> 00:57:03,954
With severely limited resources,
small teams simply cannot afford
1068
00:57:04,235 --> 00:57:07,774
to waste time on initiatives
that don't create meaningful
1069
00:57:07,837 --> 00:57:12,055
competitive advantage. They lack
the buffer that larger teams
1070
00:57:12,102 --> 00:57:15,587
have to absorb misdirected
efforts or failed experiments.
1071
00:57:15,868 --> 00:57:19,040
Every hour spent on the wrong
priority is disproportionately
1072
00:57:19,133 --> 00:57:19,493
costly.
1073
00:57:20,784 --> 00:57:23,928
A strategic approach for small
teams doesn't require elaborate
1074
00:57:23,947 --> 00:57:26,729
documentation or formal
processes. Instead, it needs
1075
00:57:26,811 --> 00:57:29,674
only a clear understanding of
how the team will behave to
1076
00:57:29,713 --> 00:57:32,838
create competitive advantage
documented in the simplest
1077
00:57:32,940 --> 00:57:36,502
possible format. The retail team
eventually created a single-page
1078
00:57:36,580 --> 00:57:39,822
document with three behavioral
commitments that transformed
1079
00:57:39,838 --> 00:57:40,619
their effectiveness.
1080
00:57:41,166 --> 00:57:43,994
This lightweight approach
emphasized clear decision
1081
00:57:44,041 --> 00:57:46,447
criteria rather than
comprehensive planning. The
1082
00:57:46,494 --> 00:57:50,333
retail team committed to three
behaviors. They would only build
1083
00:57:50,454 --> 00:57:54,235
analytics that directly impacted
customer retention metrics. They
1084
00:57:54,278 --> 00:57:57,477
would deliver initial results
within two weeks of any project
1085
00:57:57,540 --> 00:58:00,524
initiation, and they would
allocate Friday afternoons to
1086
00:58:00,563 --> 00:58:02,243
improving their data
infrastructure.
1087
00:58:03,024 --> 00:58:06,134
These simple guardrails allowed
them to quickly evaluate
1088
00:58:06,243 --> 00:58:09,274
incoming requests without
lengthy meetings or analysis
1089
00:58:09,305 --> 00:58:13,493
paralysis. The startup FinTech
team I worked with implemented
1090
00:58:13,494 --> 00:58:17,261
what they called strategic
triage. A five-minute evaluation
1091
00:58:17,302 --> 00:58:19,404
of any new request against three
questions.
1092
00:58:20,384 --> 00:58:23,829
Does this directly support our
competitive differentiation in
1093
00:58:23,927 --> 00:58:25,111
automated loan processing?
1094
00:58:26,290 --> 00:58:29,056
Can we complete a valuable
version within our two-week work
1095
00:58:29,134 --> 00:58:32,431
cycle? Will the solution scale
beyond the immediate use case?
1096
00:58:33,150 --> 00:58:35,884
Any request failing these tests
was either declined or
1097
00:58:35,947 --> 00:58:39,603
renegotiated. Small teams can
implement strategic behavioral
1098
00:58:39,665 --> 00:58:42,822
patterns without bureaucracy by
focusing on clear decision
1099
00:58:42,884 --> 00:58:45,976
criteria, shared
knowledge-building habits, and
1100
00:58:46,036 --> 00:58:47,177
simplified communication.
1101
00:58:47,617 --> 00:58:51,119
The three-person data science
team at a property management
1102
00:58:51,158 --> 00:58:54,682
company created a simple
collaboration ritual, a
1103
00:58:55,260 --> 00:58:58,721
15-minute daily stand-up focused
not on status updates but on
1104
00:58:58,760 --> 00:59:02,002
decision alignment. Each team
member would share one key
1105
00:59:02,033 --> 00:59:05,424
decision they were facing and
get rapid input from colleagues.
1106
00:59:06,080 --> 00:59:08,846
This ensured consistent
strategic behavior across their
1107
00:59:08,877 --> 00:59:09,127
work.
1108
00:59:10,174 --> 00:59:13,127
Another effective pattern comes
from a five-person healthcare
1109
00:59:13,158 --> 00:59:17,390
analytics team who established
Strategy anchors, physical
1110
00:59:17,431 --> 00:59:20,552
reminders of their core
behavioral commitments. They
1111
00:59:20,634 --> 00:59:23,173
posted three questions
prominently in their workspace.
1112
00:59:23,916 --> 00:59:27,220
Are we prioritizing clinical
impact over technical elegance?
1113
00:59:28,400 --> 00:59:31,080
Are we creating solutions nurses
can use without training?
1114
00:59:32,142 --> 00:59:35,173
Are we reducing, not adding, to
clinician workload?
1115
00:59:36,111 --> 00:59:39,408
These visible reminders helped
maintain consistent behavior
1116
00:59:39,814 --> 00:59:43,314
without formal processes. What's
particularly powerful about
1117
00:59:43,361 --> 00:59:47,206
these approaches is that they
enable small teams to punch far
1118
00:59:47,267 --> 00:59:48,269
above their weight class.
1119
00:59:49,171 --> 00:59:52,159
The three-person insurance
analytics team I consulted with
1120
00:59:52,619 --> 00:59:55,361
competed directly against
competitors with 30-plus data
1121
00:59:55,402 --> 00:59:59,103
scientists. By focusing all
their efforts on a specific
1122
00:59:59,346 --> 01:00:02,869
customer segment underserved by
larger players and committing to
1123
01:00:03,650 --> 01:00:06,455
weekly customer interviews, they
created specialized solutions
1124
01:00:06,494 --> 01:00:07,650
with remarkable market fit.
1125
01:00:08,494 --> 01:00:11,150
Their behavioral commitment to
deep customer understanding
1126
01:00:11,244 --> 01:00:14,541
created leverage that larger
teams spread across many
1127
01:00:14,619 --> 01:00:18,010
initiatives couldn't match.
Similarly, a two-person data
1128
01:00:18,056 --> 01:00:21,213
science team at a regional
manufacturing company created
1129
01:00:21,371 --> 01:00:24,635
disproportionate impact by
focusing exclusively on
1130
01:00:24,713 --> 01:00:25,873
production line efficiency.
1131
01:00:26,956 --> 01:00:29,756
Rather than attempting
comprehensive coverage of all
1132
01:00:29,819 --> 01:00:33,225
potential analytics use cases,
they identified the single
1133
01:00:33,280 --> 01:00:35,983
highest leverage point in the
business and directed all their
1134
01:00:36,045 --> 01:00:40,217
work toward it. Their strategic
commitment to depth over breadth
1135
01:00:40,530 --> 01:00:43,936
allowed them to build solutions
with profound business impact
1136
01:00:43,937 --> 01:00:45,311
despite their tiny team size.
1137
01:00:45,851 --> 01:00:47,994
Small teams should focus their
strategic thinking on
1138
01:00:48,033 --> 01:00:50,576
identifying these leverage
points rather than attempting
1139
01:00:50,634 --> 01:00:54,400
comprehensive coverage. The
medical device startup I advised
1140
01:00:54,783 --> 01:00:58,166
succeeded by focusing
exclusively on enhancing their
1141
01:00:58,283 --> 01:01:01,767
sales team's effectiveness,
ignoring potentially valuable
1142
01:01:01,830 --> 01:01:04,783
but secondary applications in
operations and finance.
1143
01:01:05,752 --> 01:01:09,220
Their strategic behavior pattern
included a weekly leverage test
1144
01:01:09,408 --> 01:01:12,111
that evaluated whether any
current work was drifting away
1145
01:01:12,158 --> 01:01:15,732
from their core focus area. One
of the most Challenging aspects
1146
01:01:15,752 --> 01:01:19,415
for small teams is maintaining
strategic consistency despite
1147
01:01:19,458 --> 01:01:20,739
frequent priority shifts.
1148
01:01:21,700 --> 01:01:25,122
The four-person analytics team
at a software company addressed
1149
01:01:25,137 --> 01:01:28,684
this by creating a Strategy
contract with leadership. This
1150
01:01:28,723 --> 01:01:31,387
simple document outlined their
behavioral commitments and
1151
01:01:31,434 --> 01:01:35,043
clarified that any priority
shift requiring deviation from
1152
01:01:35,106 --> 01:01:37,872
these commitments would trigger
a formal review.
1153
01:01:38,653 --> 01:01:42,215
This moved them from passive
recipients of changing demands
1154
01:01:42,262 --> 01:01:45,392
to active partners in strategic
decisions. Another effective
1155
01:01:45,412 --> 01:01:48,395
technique comes from a
three-person municipal
1156
01:01:48,475 --> 01:01:51,237
government data team who
established priority buffers,
1157
01:01:52,096 --> 01:01:55,839
deliberately keeping 30% of
their capacity unallocated to
1158
01:01:55,885 --> 01:01:58,542
absorb inevitable urgent
requests without derailing
1159
01:01:58,628 --> 01:01:59,487
strategic work.
1160
01:02:00,729 --> 01:02:04,104
This buffer wasn't idle time,
but rather protected capacity
1161
01:02:04,464 --> 01:02:07,354
that allowed them to maintain
their core behavioral
1162
01:02:07,401 --> 01:02:10,944
commitments even when urgent
requests arrived. The two-person
1163
01:02:11,004 --> 01:02:14,066
team at an education technology
startup maintained consistency
1164
01:02:14,187 --> 01:02:16,549
through what they called
strategic minimums,
1165
01:02:17,068 --> 01:02:19,791
non-negotiable time allocations
for their highest leverage
1166
01:02:19,853 --> 01:02:20,416
activities.
1167
01:02:21,135 --> 01:02:24,838
They committed to spending at
least 25% of their time directly
1168
01:02:24,900 --> 01:02:27,674
observing how teachers used
their analytics products,
1169
01:02:27,877 --> 01:02:31,908
regardless of other demands.
This minimum viable strategic
1170
01:02:31,970 --> 01:02:35,674
behavior ensured they maintained
their competitive advantage in
1171
01:02:35,892 --> 01:02:40,043
user-centered design, despite
constant pressure to build. New
1172
01:02:40,183 --> 01:02:40,724
features.
1173
01:02:41,745 --> 01:02:45,108
Behaviors that win, building
your Strategy. Strategic
1174
01:02:45,190 --> 01:02:48,510
minimums establish a foundation,
but they don't tell you which
1175
01:02:48,573 --> 01:02:50,495
behaviors will actually win in
your market.
1176
01:02:51,596 --> 01:02:54,557
The most successful data science
teams I've worked with don't
1177
01:02:54,596 --> 01:02:55,815
just protect their time.
1178
01:02:56,792 --> 01:02:59,917
They deliberately engineer
behavioral patterns across four
1179
01:02:59,964 --> 01:03:02,839
domains that their competitors
consistently overlook.
1180
01:03:04,155 --> 01:03:06,716
These patterns aren't universal
templates, they're precision
1181
01:03:06,776 --> 01:03:09,778
instruments calibrated to your
specific competitive landscape.
1182
01:03:10,235 --> 01:03:13,497
Understanding which specific
behaviors to prioritize requires
1183
01:03:13,498 --> 01:03:17,161
a clear-eyed assessment of your
competitive context. What makes
1184
01:03:17,162 --> 01:03:21,559
a behavior strategic isn't that
it's good practice, it's that it
1185
01:03:21,638 --> 01:03:25,325
creates disproportionate
advantage in your particular
1186
01:03:25,356 --> 01:03:25,794
situation.
1187
01:03:26,341 --> 01:03:29,778
For example, a behavior like
meeting with stakeholders weekly
1188
01:03:30,278 --> 01:03:33,964
might be necessary hygiene in
one context, but a genuine
1189
01:03:34,044 --> 01:03:38,046
competitive advantage in another
organization where competitors
1190
01:03:38,448 --> 01:03:41,890
maintain distant relationships
with business partners.
1191
01:03:42,851 --> 01:03:45,312
The most effective data science
strategies I've encountered
1192
01:03:45,476 --> 01:03:48,718
organize behaviors into four
fundamental categories that
1193
01:03:48,741 --> 01:03:52,077
together form a comprehensive
approach. The first category
1194
01:03:52,187 --> 01:03:55,827
focuses on knowledge
acquisition, how your team
1195
01:03:56,140 --> 01:03:59,937
learns, shares information, and
builds institutional memory. The
1196
01:03:59,968 --> 01:04:03,087
second centers on decision
making. The processes, criteria,
1197
01:04:03,488 --> 01:04:05,569
and cadence of choices your team
makes.
1198
01:04:05,967 --> 01:04:10,651
The third addresses stakeholder
interaction, how you engage with
1199
01:04:10,768 --> 01:04:13,948
partners, users, and leadership.
The fourth encompasses your
1200
01:04:14,026 --> 01:04:17,791
technical approach, the methods,
tools, and standards that define
1201
01:04:18,104 --> 01:04:21,432
your work. Let's examine
specific winning behaviors
1202
01:04:21,526 --> 01:04:24,807
within each category. For
knowledge acquisition, a
1203
01:04:24,838 --> 01:04:28,291
consumer packaged goods company
I worked with committed to
1204
01:04:28,307 --> 01:04:31,120
spending 10% of their time
living with the data.
1205
01:04:32,123 --> 01:04:35,586
Directly examining raw data
without intermediary dashboards.
1206
01:04:36,488 --> 01:04:39,430
This behavior uncovered subtle
patterns their competitors
1207
01:04:39,691 --> 01:04:43,215
missed. A financial services
firm instituted mandatory
1208
01:04:43,332 --> 01:04:47,059
cross-pollination sessions where
data scientists regularly
1209
01:04:47,137 --> 01:04:51,121
rotated between product teams,
preventing knowledge silos that
1210
01:04:51,199 --> 01:04:52,699
plagued their industry peers.
1211
01:04:53,847 --> 01:04:56,810
For decision-making behaviors, a
retail analytics team
1212
01:04:56,929 --> 01:05:00,093
established a kill criteria
framework where projects were
1213
01:05:00,112 --> 01:05:03,394
evaluated against predetermined
failure conditions every two
1214
01:05:03,417 --> 01:05:03,714
weeks.
1215
01:05:04,714 --> 01:05:07,722
This prevented the resource
drain of prolonged unsuccessful
1216
01:05:07,784 --> 01:05:10,456
initiatives that their
competitors experienced. A
1217
01:05:10,550 --> 01:05:13,972
healthcare analytics
organization implemented what
1218
01:05:13,973 --> 01:05:17,191
they called parallel paths,
always maintaining at least two
1219
01:05:17,206 --> 01:05:20,175
competing approaches to
significant problems until clear
1220
01:05:20,237 --> 01:05:23,552
superiority emerged. This
prevented premature commitment
1221
01:05:23,553 --> 01:05:24,833
to suboptimal solutions.
1222
01:05:25,534 --> 01:05:29,118
In stakeholder interaction, a
manufacturing analytics team
1223
01:05:29,200 --> 01:05:33,059
practiced embedded rotation,
where data scientists spent one
1224
01:05:33,098 --> 01:05:36,067
week per quarter working
directly alongside factory
1225
01:05:36,083 --> 01:05:39,833
personnel. This created
intuitive understanding of
1226
01:05:39,895 --> 01:05:43,255
operational realities that
competitors with centralized
1227
01:05:43,270 --> 01:05:43,958
teams lacked.
1228
01:05:44,708 --> 01:05:48,317
A software company implemented
premortem workshops with
1229
01:05:48,395 --> 01:05:51,700
stakeholders before starting
projects. Imagining potential
1230
01:05:51,760 --> 01:05:55,265
failures, and building shared
risk ownership that competitive
1231
01:05:55,284 --> 01:05:58,749
teams struggle to establish. For
technical approach, a
1232
01:05:58,765 --> 01:06:01,507
telecommunications data science
team committed to maintaining
1233
01:06:01,546 --> 01:06:05,874
what they called model twins,
simpler, interpretable models
1234
01:06:06,077 --> 01:06:07,491
alongside more complex ones.
1235
01:06:08,476 --> 01:06:10,913
This balance between
explainability and performance
1236
01:06:11,241 --> 01:06:14,429
created trust with leadership
that competitors couldn't match.
1237
01:06:14,616 --> 01:06:18,288
A government agency analytics
team standardized on specific
1238
01:06:18,382 --> 01:06:21,551
modeling approaches within
domains, rather than chasing the
1239
01:06:21,572 --> 01:06:25,116
latest algorithms, creating
consistency that outperformed
1240
01:06:25,155 --> 01:06:28,479
competitors using more advanced
but less reliable techniques.
1241
01:06:29,358 --> 01:06:32,444
The specific competitive
advantage created varies
1242
01:06:32,522 --> 01:06:35,803
dramatically by context. A
behavior like conducting weekly
1243
01:06:35,905 --> 01:06:38,991
user research might create
massive advantage in a
1244
01:06:39,006 --> 01:06:42,069
consumer-facing digital product
company where competitors
1245
01:06:42,147 --> 01:06:45,975
prioritize technical innovation
over user feedback. That same
1246
01:06:46,022 --> 01:06:48,241
behavior might create minimal
advantage.
1247
01:06:48,431 --> 01:06:51,692
In industrial analytics where
domain expertise and system
1248
01:06:51,751 --> 01:06:55,811
reliability matter more than
user experience. To assess which
1249
01:06:55,913 --> 01:06:58,292
behaviors will create
competitive advantage in your
1250
01:06:58,331 --> 01:07:01,354
specific situation, start by
identifying your organization's
1251
01:07:01,456 --> 01:07:04,034
strategic priorities and
competitive landscape.
1252
01:07:04,956 --> 01:07:08,518
If your organization competes on
innovation speed, behaviors,
1253
01:07:09,050 --> 01:07:11,800
emphasizing rapid
experimentation, and lightweight
1254
01:07:11,893 --> 01:07:15,081
implementation will create
advantage. If it competes on
1255
01:07:15,143 --> 01:07:18,428
precision and reliability
Behaviors emphasizing thorough
1256
01:07:18,449 --> 01:07:21,090
validation and systematic
documentation will matter more.
1257
01:07:21,672 --> 01:07:24,414
Next, honestly evaluate your
competitors' behavioral
1258
01:07:24,473 --> 01:07:27,258
patterns. The greatest advantage
comes from strategic
1259
01:07:27,321 --> 01:07:30,938
differentiation, deliberately
choosing behaviors that contrast
1260
01:07:31,000 --> 01:07:32,102
with competitive norms.
1261
01:07:32,641 --> 01:07:35,399
If your competitors maintain
strict separation between data
1262
01:07:35,461 --> 01:07:38,883
scientists and business users,
behavior like co-development
1263
01:07:38,930 --> 01:07:42,611
with stakeholders might create
disproportionate advantage. If
1264
01:07:42,691 --> 01:07:45,895
they over-index on technical
sophistication at the expense of
1265
01:07:45,914 --> 01:07:49,176
implementation speed, a behavior
like deployment within two weeks
1266
01:07:49,177 --> 01:07:51,063
of approval might create more
value.
1267
01:07:51,938 --> 01:07:55,242
Document these behaviors in a
simple, actionable Strategy
1268
01:07:55,321 --> 01:07:58,453
statement that team members can
readily understand and apply.
1269
01:07:59,125 --> 01:08:02,328
Effective Strategy statements
avoid vague aspirations like
1270
01:08:02,516 --> 01:08:05,516
become data-driven in favor of
specific behavioral commitments.
1271
01:08:06,172 --> 01:08:09,141
A transportation analytics team
I worked with documented their
1272
01:08:09,235 --> 01:08:12,920
Strategy in a single page with
statements like We will maintain
1273
01:08:13,100 --> 01:08:15,963
no more than three active
projects per data scientist.
1274
01:08:17,025 --> 01:08:20,049
We will deploy models only after
they've been shadowed in
1275
01:08:20,068 --> 01:08:21,189
production for two weeks.
1276
01:08:22,088 --> 01:08:25,533
And we will dedicate every
Friday afternoon to improving
1277
01:08:25,611 --> 01:08:27,572
our collective knowledge through
teaching sessions.
1278
01:08:28,431 --> 01:08:31,213
The strongest Strategy
statements include not just what
1279
01:08:31,244 --> 01:08:34,822
you will do, but what you won't
do. A retail analytics team
1280
01:08:35,541 --> 01:08:40,650
explicitly committed to refusing
requests for one-off analysis
1281
01:08:40,713 --> 01:08:43,496
without... Clear connection to
customer retention. This
1282
01:08:43,576 --> 01:08:46,394
clarified priorities and
prevented resource dispersion
1283
01:08:46,894 --> 01:08:48,136
that competitors experienced.
1284
01:08:48,597 --> 01:08:51,215
Test your selected behaviors
against the three requirements
1285
01:08:51,216 --> 01:08:54,355
we discussed earlier. For
consistency, ask whether these
1286
01:08:54,394 --> 01:08:57,816
behaviors can be maintained
through market changes and
1287
01:08:57,925 --> 01:09:01,425
leadership transitions. For
coherence, verify that the
1288
01:09:01,426 --> 01:09:04,504
behaviors complement rather than
contradict each other. For
1289
01:09:04,535 --> 01:09:08,563
alignment, confirm that these
behaviors directly support your
1290
01:09:08,623 --> 01:09:10,804
organization's broader
competitive Strategy.
1291
01:09:11,185 --> 01:09:14,187
A technology company initially
committed to both rapid
1292
01:09:14,269 --> 01:09:18,269
prototyping and comprehensive
testing before discovering these
1293
01:09:18,316 --> 01:09:21,793
behaviors created internal
conflict. They refined their
1294
01:09:21,816 --> 01:09:25,472
approach to focus on targeted
testing of critical components,
1295
01:09:25,722 --> 01:09:27,847
which maintained quality while
enabling speed.
1296
01:09:28,644 --> 01:09:32,050
A healthcare analytics team
committed to behaviors optimized
1297
01:09:32,082 --> 01:09:34,832
for innovative discovery only to
realize their organization
1298
01:09:34,910 --> 01:09:37,695
competed primarily on
operational reliability. By
1299
01:09:37,795 --> 01:09:41,438
realigning their behaviors with
this reality, they created
1300
01:09:41,479 --> 01:09:44,964
significantly more value. The
most powerful test comes from
1301
01:09:45,260 --> 01:09:49,050
asking, if our competitors
adopted these exact same
1302
01:09:49,065 --> 01:09:51,206
behaviors, would we still have
an advantage?
1303
01:09:52,675 --> 01:09:55,138
If the answer is no, your
behaviors aren't strategically
1304
01:09:55,199 --> 01:09:58,441
differentiated enough. If yes,
you've identified genuinely
1305
01:09:58,499 --> 01:09:59,601
strategic commitments.
1306
01:10:00,562 --> 01:10:04,667
The patterns that consistently
lead to success aren't universal
1307
01:10:04,706 --> 01:10:07,870
best practices. Their behaviors
specifically match to your
1308
01:10:07,910 --> 01:10:11,253
competitive context. The most
successful data science teams
1309
01:10:11,347 --> 01:10:14,222
commit to patterns in knowledge
acquisition, decision-making,
1310
01:10:14,722 --> 01:10:17,863
stakeholder interaction, and
technical approach that create
1311
01:10:17,894 --> 01:10:19,816
advantage in their specific
situation.
1312
01:10:20,731 --> 01:10:23,875
Each organization must develop
its own unique combination based
1313
01:10:23,894 --> 01:10:26,619
on honest assessment of
organizational priorities and
1314
01:10:26,658 --> 01:10:29,978
competitive landscape. Testing
your Strategy, plan or true
1315
01:10:30,017 --> 01:10:30,400
Strategy.
1316
01:10:31,260 --> 01:10:33,963
Think your data science team has
a solid Strategy? Most
1317
01:10:34,002 --> 01:10:37,471
organizations confidently say
yes until they apply this simple
1318
01:10:37,502 --> 01:10:39,892
test that reveals they've
actually created nothing more
1319
01:10:39,924 --> 01:10:43,689
than a sophisticated plan. What
separates true strategies from
1320
01:10:43,752 --> 01:10:46,783
well-disguised task lists is a
specific element that's missing
1321
01:10:46,830 --> 01:10:48,611
in over 80% of Strategy
documents.
1322
01:10:49,191 --> 01:10:51,913
After years of reviewing data
science Strategy documents
1323
01:10:51,954 --> 01:10:55,298
across dozens of organizations,
I've developed a straightforward
1324
01:10:55,337 --> 01:10:57,958
test that can instantly
determine whether you've created
1325
01:10:57,959 --> 01:11:02,201
a genuine Strategy or merely an
elaborate plan disguised as one.
1326
01:11:03,161 --> 01:11:05,904
This test has proven remarkably
effective regardless of team
1327
01:11:05,982 --> 01:11:09,107
size or industry context. The
challenge with evaluating your
1328
01:11:09,185 --> 01:11:10,638
own Strategy is objectivity.
1329
01:11:11,513 --> 01:11:15,029
When we invest weeks or months
creating what we believe is a
1330
01:11:15,076 --> 01:11:18,513
strategic document, we develop
blind spots, we become attached.
1331
01:11:18,703 --> 01:11:22,648
To our creation and interpret
ambiguity in favorable ways.
1332
01:11:22,886 --> 01:11:26,190
This is why external Strategy
consultants exist. They provide
1333
01:11:26,210 --> 01:11:29,530
the objective perspective we
often lack, but you don't need
1334
01:11:29,554 --> 01:11:32,194
an expensive consultant to
evaluate your Strategy.
1335
01:11:32,913 --> 01:11:36,194
Instead, start with this
fundamental question. Does your
1336
01:11:36,241 --> 01:11:38,944
Strategy document clearly
articulate how your team will
1337
01:11:38,976 --> 01:11:41,788
behave differently from
competitors or alternative
1338
01:11:41,804 --> 01:11:46,194
approaches to create a specific
advantage? This seemingly simple
1339
01:11:46,257 --> 01:11:48,444
question cuts to the heart of
strategic thinking.
1340
01:11:49,319 --> 01:11:53,684
If your document primarily lists
what you'll do rather than how
1341
01:11:53,782 --> 01:11:56,926
you'll behave to win, it's
likely not a Strategy at all.
1342
01:11:57,168 --> 01:12:00,250
The test forces you to confront
whether you've made genuine
1343
01:12:00,289 --> 01:12:02,852
behavioral commitments that
create differentiation and
1344
01:12:02,875 --> 01:12:06,172
advantage. Let me walk you
through how this test works in
1345
01:12:06,188 --> 01:12:06,594
practice.
1346
01:12:07,500 --> 01:12:10,875
Recently, I evaluated a Strategy
document from a mid-size
1347
01:12:10,922 --> 01:12:13,985
insurance company's data science
team. Their document initially
1348
01:12:14,016 --> 01:12:16,877
appeared impressive. It
contained detailed sections on
1349
01:12:16,897 --> 01:12:19,739
technologies, methodologies, and
even specific projects scheduled
1350
01:12:19,759 --> 01:12:23,044
for implementation. But when I
applied the test question, the
1351
01:12:23,045 --> 01:12:24,067
document failed completely.
1352
01:12:24,364 --> 01:12:27,325
It contained no clear statements
about behavioral patterns that
1353
01:12:27,364 --> 01:12:30,028
would differentiate their
approach from competitors or
1354
01:12:30,091 --> 01:12:33,419
create specific advantages. When
I pointed this out, the team
1355
01:12:33,919 --> 01:12:37,513
initially pushed back, arguing
that their technology selections
1356
01:12:37,575 --> 01:12:40,865
represented strategic choices.
But upon deeper examination,
1357
01:12:40,884 --> 01:12:43,406
they recognized that their
choices were industry-standard
1358
01:12:43,427 --> 01:12:45,871
approaches that created no
competitive differentiation.
1359
01:12:46,468 --> 01:12:49,797
Their document was essentially
an implementation plan, not a
1360
01:12:49,812 --> 01:12:53,156
Strategy. Beyond the fundamental
test question, I recommend
1361
01:12:53,195 --> 01:12:55,883
applying these additional
diagnostic questions to
1362
01:12:55,992 --> 01:12:59,836
thoroughly evaluate your
Strategy. First, can your
1363
01:12:59,961 --> 01:13:03,429
behavioral commitments remain
stable if market conditions
1364
01:13:03,554 --> 01:13:04,523
change dramatically?
1365
01:13:05,463 --> 01:13:08,486
True strategic behaviors should
remain valid even when the
1366
01:13:08,685 --> 01:13:11,830
external environment shifts. If
your Strategy would need to be
1367
01:13:11,869 --> 01:13:14,810
completely rewritten following a
market disruption, it's likely
1368
01:13:14,849 --> 01:13:19,420
too tactical. Second, do your
commitments create tension by
1369
01:13:19,560 --> 01:13:22,803
forcing difficult trade-offs?
Effective strategies require
1370
01:13:22,896 --> 01:13:25,881
saying no to legitimate
opportunities.
1371
01:13:27,006 --> 01:13:30,287
If your Strategy allows you to
pursue virtually any reasonable
1372
01:13:30,334 --> 01:13:33,224
data science initiative, it
lacks the necessary focus to
1373
01:13:33,271 --> 01:13:36,865
create advantage. Third. Would
your competitors be
1374
01:13:37,185 --> 01:13:40,128
uncomfortable or unwilling to
adopt the same behavioral
1375
01:13:40,168 --> 01:13:43,652
patterns? If your stated
approach would be equally
1376
01:13:43,855 --> 01:13:47,574
appealing to competitors, it
likely lacks the differentiation
1377
01:13:47,636 --> 01:13:49,355
necessary for competitive
advantage.
1378
01:13:50,316 --> 01:13:53,261
Fourth, can team members easily
apply your Strategy to make
1379
01:13:53,324 --> 01:13:55,761
daily decisions without
constantly seeking approval?
1380
01:13:57,168 --> 01:14:00,793
Effective strategies provide
clear decision criteria that can
1381
01:14:00,794 --> 01:14:03,793
be applied consistently across
the organization. Let's examine
1382
01:14:04,083 --> 01:14:06,765
how these tests play out with
real examples.
1383
01:14:07,648 --> 01:14:10,948
A healthcare analytics team's
Strategy document stated they
1384
01:14:11,011 --> 01:14:14,370
would leverage cutting-edge
machine learning techniques to
1385
01:14:14,409 --> 01:14:15,675
improve patient outcomes.
1386
01:14:16,714 --> 01:14:19,980
This failed the test because it
described a goal rather than
1387
01:14:20,034 --> 01:14:23,519
specific behavioral patterns.
When pressed, the team couldn't
1388
01:14:23,581 --> 01:14:26,300
articulate how their approach
differed from competitors or
1389
01:14:26,331 --> 01:14:27,113
created advantage.
1390
01:14:27,191 --> 01:14:31,097
By contrast, another healthcare
organization's Strategy passed
1391
01:14:31,206 --> 01:14:34,204
the test with flying colors.
Their document committed to
1392
01:14:34,285 --> 01:14:37,346
conducting at least five
clinical workflow observations
1393
01:14:37,389 --> 01:14:40,491
per month before developing any
patient-facing analytics.
1394
01:14:41,530 --> 01:14:44,873
This behavioral pattern created
advantage by ensuring their
1395
01:14:44,952 --> 01:14:47,639
solutions addressed actual
clinical needs rather than
1396
01:14:47,694 --> 01:14:49,866
assumed ones, something their
competitors weren't
1397
01:14:49,913 --> 01:14:53,538
systematically doing. Even more
tellingly, when I tested this
1398
01:14:53,616 --> 01:14:56,288
second healthcare team's
Strategy against market
1399
01:14:56,319 --> 01:14:57,709
disruptions, it remained valid.
1400
01:14:58,288 --> 01:15:01,069
When the pandemic dramatically
altered healthcare delivery
1401
01:15:01,147 --> 01:15:04,123
models, their commitment to
workflow observation actually
1402
01:15:04,162 --> 01:15:07,506
became more valuable, not less.
They simply shifted from
1403
01:15:07,588 --> 01:15:10,186
in-person observations to
virtual ones while maintaining
1404
01:15:10,209 --> 01:15:14,076
the core behavioral commitment.
When organizations discover
1405
01:15:14,131 --> 01:15:17,678
their Strategy fails these
tests, they typically exhibit
1406
01:15:17,756 --> 01:15:18,881
one of three common gaps.
1407
01:15:19,319 --> 01:15:22,959
The first is excessive focus on
technical approaches rather than
1408
01:15:23,100 --> 01:15:26,366
competitive behaviors. The
second is a lack of clear
1409
01:15:26,506 --> 01:15:29,616
trade-offs that force
prioritization. The third is
1410
01:15:30,022 --> 01:15:33,996
insufficient specificity. About
behavioral patterns, using vague
1411
01:15:34,035 --> 01:15:37,417
statements like emphasize
quality, without defining what
1412
01:15:37,480 --> 01:15:39,640
specific behaviors constitute
that emphasis.
1413
01:15:40,359 --> 01:15:43,703
Addressing these gaps requires
iterative refinement. Start by
1414
01:15:43,788 --> 01:15:46,328
identifying the competitive
advantages your team needs to
1415
01:15:46,351 --> 01:15:50,406
create, then work backward to
define the specific behavioral
1416
01:15:50,468 --> 01:15:52,890
patterns that would generate
those advantages.
1417
01:15:53,390 --> 01:15:56,421
Test each behavioral commitment
against the diagnostic
1418
01:15:56,453 --> 01:15:59,265
questions, refining until you
have a set of commitments that
1419
01:15:59,328 --> 01:16:02,378
clearly pass the test. A
technology company I worked with
1420
01:16:02,719 --> 01:16:05,421
initially had a data science
Strategy focused entirely on
1421
01:16:05,460 --> 01:16:08,226
implementing specific machine
learning techniques across
1422
01:16:08,304 --> 01:16:09,507
various business functions.
1423
01:16:10,109 --> 01:16:13,367
When they applied the test, they
realized this approach failed to
1424
01:16:13,390 --> 01:16:16,288
differentiate them from
competitors who had access to
1425
01:16:16,289 --> 01:16:18,976
the same techniques. Through
several iterations, they
1426
01:16:19,054 --> 01:16:21,882
transformed their Strategy to
focus on behavioral commitments
1427
01:16:21,945 --> 01:16:24,804
around rapid experimentations.
Specifically, they committed to
1428
01:16:25,382 --> 01:16:26,304
running at least three.
1429
01:16:26,725 --> 01:16:29,465
Customer-facing experiments
weekly and making go-no-go
1430
01:16:29,565 --> 01:16:33,485
decisions within 24 hours of
receiving results. This approach
1431
01:16:33,606 --> 01:16:37,184
created advantage through speed
and learning velocity that their
1432
01:16:37,247 --> 01:16:40,669
more bureaucratic competitors
couldn't match. The revision
1433
01:16:40,708 --> 01:16:43,489
process typically requires three
to five iterations before a
1434
01:16:43,505 --> 01:16:46,036
Strategy successfully passes all
test questions.
1435
01:16:46,505 --> 01:16:49,270
Don't be discouraged if your
first attempt fails. This is
1436
01:16:49,317 --> 01:16:51,911
normal and part of the
development process. Each
1437
01:16:52,051 --> 01:16:54,567
iteration should bring you
closer to a true Strategy?
1438
01:16:55,237 --> 01:16:57,599
Focused on behavioral patterns
that create competitive
1439
01:16:57,638 --> 01:17:00,157
advantage. Once you've
successfully tested your
1440
01:17:00,200 --> 01:17:02,817
Strategy, document it concisely.
1441
01:17:04,102 --> 01:17:06,798
The most effective data science
strategies I've seen are rarely
1442
01:17:06,876 --> 01:17:10,001
longer than three to five pages.
They focus on clearly
1443
01:17:10,102 --> 01:17:12,845
articulating behavioral
commitments, decision criteria,
1444
01:17:13,001 --> 01:17:15,407
and the competitive advantages
these behaviors create.
1445
01:17:16,298 --> 01:17:18,923
Lengthy technical appendices or
detailed project plans may
1446
01:17:19,001 --> 01:17:21,079
complement a Strategy, but
should never substitute for
1447
01:17:21,142 --> 01:17:24,070
clear behavioral commitments.
Remember that Strategy testing
1448
01:17:24,129 --> 01:17:27,529
isn't a one-time exercise.
Revisit your test questions
1449
01:17:27,592 --> 01:17:30,928
quarterly to ensure your
Strategy continues to create the
1450
01:17:31,029 --> 01:17:34,295
intended advantages and remains
relevant as competitive
1451
01:17:34,334 --> 01:17:35,248
landscapes evolve.
1452
01:17:35,670 --> 01:17:38,850
This doesn't mean rewriting your
Strategy frequently. True
1453
01:17:38,912 --> 01:17:42,100
strategic behaviors should
remain stable over time, but
1454
01:17:42,147 --> 01:17:45,397
rather confirming that your
behavioral commitments continue
1455
01:17:45,412 --> 01:17:47,615
to create differentiation and
advantage.
1456
01:17:48,694 --> 01:17:51,818
Aligning your Strategy for
success. With your Strategy now
1457
01:17:51,859 --> 01:17:55,181
battle-tested and refined, you
face perhaps the most deceptive
1458
01:17:55,220 --> 01:17:58,404
challenge in implementation,
organizational alignment.
1459
01:17:59,603 --> 01:18:02,626
Most data science leaders
discover too late that their
1460
01:18:02,806 --> 01:18:06,611
technically sound strategies are
colliding with invisible
1461
01:18:06,673 --> 01:18:09,697
organizational barriers,
creating friction that can
1462
01:18:09,790 --> 01:18:12,478
quietly undermine months of
strategic work.
1463
01:18:13,400 --> 01:18:17,587
This alignment challenge often
emerges as a disconnect between
1464
01:18:17,588 --> 01:18:18,918
what you're doing and what
you're not doing. Team has
1465
01:18:18,978 --> 01:18:21,321
committed to and what the
organization is prepared to
1466
01:18:21,340 --> 01:18:24,403
support. Consider what happened
at a major automotive
1467
01:18:24,422 --> 01:18:27,110
manufacturer, where the data
science team developed a
1468
01:18:27,125 --> 01:18:30,211
brilliant Strategy focused on
predictive maintenance.
1469
01:18:30,610 --> 01:18:33,555
Their behavioral commitments
included running continuous
1470
01:18:33,633 --> 01:18:36,297
monitoring experiments and
deploying models within six-week
1471
01:18:36,360 --> 01:18:40,578
cycles. Despite the Strategy
passing all technical tests, it
1472
01:18:40,641 --> 01:18:43,547
faltered within months as
manufacturing unit managers
1473
01:18:44,000 --> 01:18:48,510
resisted integrating new systems
into their operations. And IT
1474
01:18:48,650 --> 01:18:52,114
governance committees imposed
nine-month security review
1475
01:18:52,192 --> 01:18:52,634
cycles.
1476
01:18:53,536 --> 01:18:56,439
The fundamental issue wasn't the
Strategy itself, but its
1477
01:18:56,517 --> 01:18:59,821
integration with the broader
organization. Research from the
1478
01:19:00,079 --> 01:19:04,845
MIT Sloan Management Review
indicates that 78% of data
1479
01:19:04,985 --> 01:19:08,017
initiatives fail not because of
technology or talent
1480
01:19:08,048 --> 01:19:10,939
limitations, but because of
organizational and cultural
1481
01:19:10,970 --> 01:19:11,407
factors.
1482
01:19:12,048 --> 01:19:15,331
This statistic reveals that the
critical importance of alignment
1483
01:19:15,411 --> 01:19:17,955
as the final but essential
component of Strategy
1484
01:19:18,033 --> 01:19:21,217
implementation. Successful
alignment requires managing
1485
01:19:21,256 --> 01:19:23,783
three crucial organizational
interfaces. The first is
1486
01:19:23,861 --> 01:19:27,220
executive leadership, where
alignment means ensuring your
1487
01:19:27,259 --> 01:19:30,642
behavioral commitments directly
address the competitive
1488
01:19:30,720 --> 01:19:32,127
challenges they perceive.
1489
01:19:33,330 --> 01:19:36,736
A pharmaceutical data science
leader discovered this when her
1490
01:19:36,814 --> 01:19:40,439
team's focus on accelerating
clinical trial analysis seemed
1491
01:19:40,517 --> 01:19:44,035
disconnected from leadership's.
Primary concern about declining
1492
01:19:44,255 --> 01:19:45,177
R&D productivity.
1493
01:19:45,897 --> 01:19:49,098
By reframing their Strategy to
explicitly show how faster
1494
01:19:49,122 --> 01:19:52,161
analysis would identify
unpromising compounds earlier,
1495
01:19:52,747 --> 01:19:56,911
saving millions in development
costs, she secured enthusiastic
1496
01:19:56,989 --> 01:19:59,997
executive support. Executive
alignment techniques that.
1497
01:20:00,048 --> 01:20:04,133
Work include regular Strategy
dialogues rather than one-time
1498
01:20:04,153 --> 01:20:07,856
presentations. A financial
services data science leader
1499
01:20:08,333 --> 01:20:11,778
established quarterly review
sessions with C-Suite executives
1500
01:20:11,856 --> 01:20:15,481
where he would present not just
outcomes but how specific
1501
01:20:15,520 --> 01:20:18,590
behavioral commitments were
creating competitive advantage.
1502
01:20:19,544 --> 01:20:21,872
These sessions evolved from
skeptical questioning to
1503
01:20:21,903 --> 01:20:24,934
collaborative Strategy
refinement as executives began
1504
01:20:24,965 --> 01:20:28,262
to see themselves as co-creators
rather than just approvers.
1505
01:20:28,948 --> 01:20:31,932
Another effective approach is
creating a translator document
1506
01:20:32,531 --> 01:20:35,312
that maps your strategic
behavioral commitments to
1507
01:20:35,375 --> 01:20:38,117
executive priorities. A
healthcare analytics team
1508
01:20:38,195 --> 01:20:41,258
created a one-page visualization
showing how each of their
1509
01:20:41,320 --> 01:20:44,906
strategic behaviors directly
supported the CEO's three stated
1510
01:20:44,969 --> 01:20:45,547
priorities.
1511
01:20:46,812 --> 01:20:50,016
This visual aid became a
powerful alignment tool that
1512
01:20:50,062 --> 01:20:52,656
executives actually kept on
their desks for reference. The
1513
01:20:52,672 --> 01:20:55,219
second crucial interface is with
partner teams, the groups whose
1514
01:20:55,250 --> 01:20:58,422
cooperation you need to succeed.
These typically include IT,
1515
01:20:58,764 --> 01:21:01,585
product teams, business units,
and sometimes compliance or
1516
01:21:01,624 --> 01:21:02,444
legal departments.
1517
01:21:02,985 --> 01:21:05,767
Alignment here requires
understanding their incentives,
1518
01:21:05,825 --> 01:21:08,509
constraints, and working styles.
A retail data science team
1519
01:21:08,563 --> 01:21:11,087
discovered that their commitment
to rapid experimentation was
1520
01:21:11,126 --> 01:21:13,985
constantly frustrated by the IT
department's quarterly release
1521
01:21:14,024 --> 01:21:14,384
schedule.
1522
01:21:15,048 --> 01:21:18,251
Rather than battling against
this constraint, they created a
1523
01:21:18,454 --> 01:21:21,907
lightweight experimentation
environment in collaboration
1524
01:21:21,985 --> 01:21:26,626
with IT, allowing them to run
customer-facing tests without
1525
01:21:26,673 --> 01:21:30,121
disrupting production systems.
This collaborative solution
1526
01:21:30,200 --> 01:21:32,880
preserved their strategic
behavior while respecting IT's
1527
01:21:32,942 --> 01:21:34,860
legitimate concerns about system
stability.
1528
01:21:35,282 --> 01:21:38,758
For partner team alignment,
joint working sessions are far
1529
01:21:38,805 --> 01:21:41,782
more effective than formal
handoffs. A manufacturing
1530
01:21:41,844 --> 01:21:44,587
analytics team instituted
monthly Strategy alignment
1531
01:21:44,665 --> 01:21:48,188
workshops where representatives
from operations, engineering,
1532
01:21:48,204 --> 01:21:52,266
and IT would work through
practical implications of the
1533
01:21:52,282 --> 01:21:54,266
data science team's behavioral
commitments.
1534
01:21:55,266 --> 01:21:58,568
These sessions revealed
potential conflicts early and
1535
01:21:58,668 --> 01:22:02,471
created shared ownership of
solutions. Creating explicit
1536
01:22:02,534 --> 01:22:06,299
interface agreements has also
proven highly effective. An
1537
01:22:06,300 --> 01:22:09,541
insurance data science team
developed partnership charters
1538
01:22:10,018 --> 01:22:12,659
with each major internal
collaborator, documenting
1539
01:22:12,706 --> 01:22:15,924
expectations, communication
protocols, and escalation
1540
01:22:15,971 --> 01:22:16,487
procedures.
1541
01:22:16,924 --> 01:22:20,237
These agreements reduced
friction and helped all parties
1542
01:22:20,409 --> 01:22:23,627
understand how their success
metrics interrelated. The third
1543
01:22:23,690 --> 01:22:26,681
critical interface is within
your own team. Ensuring
1544
01:22:26,761 --> 01:22:29,144
individual contributors
understand and embrace the
1545
01:22:29,163 --> 01:22:30,023
strategic behaviors.
1546
01:22:30,702 --> 01:22:35,007
A study by Gallup found that
only 27% of employees strongly
1547
01:22:35,070 --> 01:22:38,109
agree that they believe in their
company's values. For data
1548
01:22:38,156 --> 01:22:41,999
science teams, this disconnect
often appears as misalignment
1549
01:22:42,038 --> 01:22:44,577
between stated strategic
behaviors and daily work
1550
01:22:44,624 --> 01:22:48,140
priorities. A telecommunications
data science leader addressed
1551
01:22:48,156 --> 01:22:51,562
this by redesigning performance
metrics to directly reflect the
1552
01:22:51,577 --> 01:22:52,827
team's strategic behaviors.
1553
01:22:53,280 --> 01:22:56,864
If the Strategy emphasized rapid
experimentation, individual
1554
01:22:56,903 --> 01:23:00,567
performance reviews highlighted
experiment velocity and learning
1555
01:23:00,625 --> 01:23:05,594
quality rather than just model
accuracy. This alignment created
1556
01:23:05,735 --> 01:23:09,118
powerful reinforcement of
strategic behaviors throughout
1557
01:23:09,133 --> 01:23:09,899
the organization.
1558
01:23:10,352 --> 01:23:13,321
Team alignment also requires
making strategic behaviors
1559
01:23:13,383 --> 01:23:16,258
visible in daily work. A
technology company's data
1560
01:23:16,305 --> 01:23:19,024
science team integrated their
behavioral commitments into
1561
01:23:19,102 --> 01:23:22,305
project kickoff templates,
stand-ups, and retrospectives.
1562
01:23:23,020 --> 01:23:26,741
They started each meeting with
the question, how is today's
1563
01:23:26,860 --> 01:23:28,920
work advancing our strategic
behaviors?
1564
01:23:29,940 --> 01:23:33,104
This constant reinforcement
transformed abstract commitments
1565
01:23:33,143 --> 01:23:35,784
into practical daily choices.
While establishing these
1566
01:23:35,799 --> 01:23:38,401
alignments, you'll inevitably
encounter resistance and
1567
01:23:38,424 --> 01:23:41,409
blockers. The key is identifying
them before they derail your
1568
01:23:41,440 --> 01:23:41,877
Strategy.
1569
01:23:43,190 --> 01:23:45,768
Common alignment blockers
include conflicting incentive
1570
01:23:45,784 --> 01:23:49,502
structures, legacy governance
processes, and competing
1571
01:23:49,518 --> 01:23:50,893
priorities among stakeholders.
1572
01:23:52,024 --> 01:23:56,769
To identify potential blockers,
conduct a premortem exercise
1573
01:23:56,770 --> 01:23:59,851
where you imagine it's one year
later and your Strategy has
1574
01:24:00,011 --> 01:24:03,995
failed due to alignment issues.
What happened? A biotechnology
1575
01:24:04,058 --> 01:24:07,597
data science team used this
technique to identify that their
1576
01:24:08,198 --> 01:24:11,839
commitment to rapid model
deployment would conflict with
1577
01:24:11,840 --> 01:24:14,089
the company's rigid validation
protocols.
1578
01:24:14,901 --> 01:24:18,214
By proactively addressing this
with quality assurance teams,
1579
01:24:18,917 --> 01:24:21,816
they developed a tiered
validation approach. That
1580
01:24:21,916 --> 01:24:25,018
maintained necessary safeguards
while enabling their strategic
1581
01:24:25,079 --> 01:24:28,542
behaviors. Once identified,
addressing blockers requires a
1582
01:24:28,561 --> 01:24:31,163
combination of education,
adaptation, and negotiation.
1583
01:24:32,405 --> 01:24:35,710
Education means helping others
understand the competitive
1584
01:24:35,749 --> 01:24:37,608
rationale behind your strategic
behaviors.
1585
01:24:38,678 --> 01:24:42,038
Adaptation means modifying
implementation details while
1586
01:24:42,053 --> 01:24:45,132
preserving core behavioral
commitments. Negotiation means
1587
01:24:45,241 --> 01:24:47,866
finding compromise solutions
that meet multiple needs.
1588
01:24:48,534 --> 01:24:51,657
Perhaps most challenging is
maintaining alignment as both
1589
01:24:51,676 --> 01:24:53,377
your Strategy and the
organization evolve.
1590
01:24:53,877 --> 01:24:56,838
A consumer goods company's data
science team instituted
1591
01:24:56,924 --> 01:25:00,042
quarterly alignment health
checks where they systematically
1592
01:25:00,088 --> 01:25:02,565
assess the current state of
alignment across all three
1593
01:25:02,604 --> 01:25:05,815
interfaces. These structured
reviews helped them spot
1594
01:25:05,924 --> 01:25:08,096
emerging misalignments before
they became problematic.
1595
01:25:08,237 --> 01:25:11,049
Creating mechanisms for ongoing
dialogue is essential.
1596
01:25:11,877 --> 01:25:16,002
A healthcare analytics team
established a Strategy advisory
1597
01:25:16,096 --> 01:25:19,076
council with representatives
from across the organization.
1598
01:25:19,516 --> 01:25:22,637
This forum provided regular
opportunities to discuss how
1599
01:25:22,700 --> 01:25:25,239
changing organizational
priorities or market conditions
1600
01:25:25,403 --> 01:25:28,043
might affect alignment with the
data science Strategy.
1601
01:25:29,129 --> 01:25:32,090
Successful alignment also
requires adapting communication
1602
01:25:32,145 --> 01:25:35,332
styles to different audiences.
When discussing Strategy with
1603
01:25:35,364 --> 01:25:39,551
executives, focus on competitive
outcomes. With partner teams,
1604
01:25:39,801 --> 01:25:42,864
emphasize collaborative
workflows. With team members,
1605
01:25:43,223 --> 01:25:45,848
connect strategic behaviors to
professional growth and
1606
01:25:45,942 --> 01:25:46,723
meaningful impact.
1607
01:25:47,946 --> 01:25:50,988
Throughout this journey, we've
transformed our understanding of
1608
01:25:51,008 --> 01:25:53,691
data science Strategy from a
mere project plan to a
1609
01:25:53,711 --> 01:25:56,918
commitment of behavioral
patterns that create competitive
1610
01:25:56,973 --> 01:26:01,637
advantage. This paradigm shift
enables teams of any size to be
1611
01:26:01,723 --> 01:26:04,582
more adaptable while maintaining
strategic integrity.
1612
01:26:05,019 --> 01:26:07,660
Your immediate task is
straightforward yet profound.
1613
01:26:08,285 --> 01:26:11,535
Examine your current approach
using our strategic framework.
1614
01:26:12,207 --> 01:26:15,519
Ask yourself whether your team
has clear behavioral commitments
1615
01:26:15,566 --> 01:26:18,379
that directly contribute to
winning in your competitive
1616
01:26:18,419 --> 01:26:22,643
context. Remember that Strategy
manifests through daily actions,
1617
01:26:22,983 --> 01:26:24,045
not PowerPoint slides.
1618
01:26:24,405 --> 01:26:27,670
The most successful data science
teams, regardless of size or
1619
01:26:27,671 --> 01:26:30,592
resources, are those who
consistently embody their
1620
01:26:30,631 --> 01:26:34,139
strategic behaviors, adapting
tactics while maintaining their
1621
01:26:34,202 --> 01:26:37,655
competitive positioning. The
true power of Strategy lies not
1622
01:26:37,717 --> 01:26:41,077
in predicting the future, but in
building a team that can thrive
1623
01:26:41,123 --> 01:26:41,467
within it.