We just finished writing our most recent articles about some of the many facets of a wellrounded analysis process. While the topics have gained a very meaningful place in today’s executive suite, maybe a bigger question is, “should they?”
The operational areas we included in our most recent articles were: a) database marketing/analytics: supporting the best spending on patrons to deliver be the most cost effective service; b) slot and table operations/floor optimizing: which ranks tables and machines as best and most profitable; and c) feasibility/market studies: what is the revenue that your local market should produce and if competition opens in a nearby market, what current revenue is at-risk.
Of course, when advanced analytics, advanced metrics or analysis by any other word, helps you make a business decision, then the effort to produce the analysis is worth its weight in gold. Lately, the issue we have heard from an increasing number of people around multiple industries has become threefold. First, what kind of a super-analytics machine process do I need? Second, how much does this cost me? Lastly – and this is the real $50,000 question if there ever was one – am I any better off?
Simply put, the costs for the latest and greatest next generation of advanced analytics can vary, but they all start in low six figure range for the hardware and software. Next, you will need to have someone run the hundreds of thousands of dollars who often comes with a high-dollar price tag for their wages themselves.
In modern sports, analytics is thought to be of immense value and sports literature is replete with many articles supporting the value and the costs of such system. However, while analytics and advanced metrics have proven valuable, it seems to some that nothing is better than a good, well thought out process for doing your job.
Bill Belichick is head coach of the New England Patriots. His success is well documented as is the team’s history of investing heavily in analysis. However, when it comes to new metrics, he has a simple philosophy. Coach Belichick fielded a variety of questions at his Friday morning news conference on November 18, 2016. As usual he delivered some answers with a bite, particularly when it came to the topic of “advance metric websites.” The question was if quarterback release times are more widely discussed now because of these advance metric websites.
“The, what now?” Belichick asked. Told the quick release of quarterbacks, Belichick specifically asked, “What metric are you talking about?” When informed that it was a reference to the advance metric websites that put emphasis on quick releases by quarterbacks, Belichick began to get rolling. “What the hell is that?” he asked. “I mean, you could take those advanced websites and metric them – whatever you want. I don’t know. I have no idea. I’ve never looked at one. I don’t even care to look at one. I don’t care what they say. All the metric pages and all of that, I mean I have no idea. You’d need to ask that to a smarter coach than me.”
Is he dismissing analytics, no. He is dismissing using a process that he cannot directly completely understand. In other words, his analysis team needs to produce work that he can understand and then implement with his coaching staff and then players. Another person familiar with the Patriots process, Matt Chatham is a former Patriots player.
He is a three-time Super Bowl champion and has retired to be a writer, analyst and broadcaster for numerous sports networks such as NESN, ESPN CFB and others.
Chatham was asked about coach Belichick’s rationale regarding using advanced metrics. Chatham’s reply was simple: “Coach Belichick might be more accurately saying, ignore analytics that you don’t believe in. Analysis that’s actionable, relevant – not just stats sans filters – is what is important. Every NFL coach I work with approaches these things the same way: if it’s not actionable, in NFL parlance or helping you win, the good coaches don’t use it.”
While a bit of a different path from our usual technically detailed articles, it is important to step back and look at what your needs are to make decisions. So, to begin 2017 we will take this time to step back.
What you need to think about is simple. Your decisions need to be effective and as the article highlights, if your analysis is not actionable, or doesn’t help you make decisions (to win), then don’t use it.