The two levers
If you missed the livestream yesterday about High Performing Data Teams: Agile Behaviors and Frameworks, you can still catch the replay!
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For each decision you make you have two levers to pull.
The probability that something will happen.
The payoff that occurs if it happens.
In each decision, we are consciously or subconsciously evaluating these two things.
Skydiving has a very high chance of being successful. But a very significant loss if the parachute fails.
Buying an index fund has a very low chance of decreasing in value over a meaningful period of time.
Joining a community group might have a high chance of meeting new people and an average chance that one of those relationships will become significant in your life.
These are the two levers that are present in every decision. Probability and payoff.
Data won’t ever change the probability that something will occur. Neither will data change the size of the reward or loss for a specific decision.
But it will offer you a clearer view of reality. Maybe the High Risk, Low Reward option isn’t worth it. Maybe if the reward was 10% bigger it would be worth it. Only a clear view of reality allows you to ask different questions about the options before you.
Are there other options available?
How can I change this scenario to reduce the risk?
What opportunities are there to increase the probability of success?
Can I avoid this decision?
Ultimately, this requires two things:
Data to evaluate
Awareness of the outcome you want.
As data nerds, we have plenty of the first. But the second piece is a chronic challenge for leadership.
If you want tactical strategies for designing outcomes, success and decisions for your data team, jump into my Measuring Success Launchpad.
A previous workshop participant said this: “Yes, I would recommend this! The frameworks are really useful and it's always better to break down how it applies to your specific scenario with someone who knows it really well.”
Hit reply to get started.
I’m here,
Sawyer
