Myth #1: The Distinction Between Analytics and Statistics

Although analysts and statisticians utilize similar tools and formulas, their training equips them for distinctly different tasks:

• Analytics assists in forming hypotheses, enhancing the quality of inquiries.
• Statistics is for testing hypotheses, improving the accuracy of conclusions.

Myth #2: Analytics vs. Journalism/Marketing

Analytics should not be confused with marketing. While analytics broadens the perspective of decision-makers, marketing narrows it down.

The primary role of an analyst is to support their decision-makers, contrasting sharply with data journalism, which aims to engage a broad audience on a smaller scale.

Myth #3: Analytics as Decision-Making

While analytics informs decision-making, it remains a distinct function. As an analyst, I don't make choices for you, even if I possess greater expertise in the subject matter. Elevating me to a decision-making position would be necessary for that to be ethical.

If you seek a hybrid role combining analysis and decision-making, be aware that you’re merging two distinct functions, which should be explicitly outlined. A frequent query arises: "What if the decision-maker is unskilled?" This can complicate matters significantly.

Difference #8: The Ability to Add Value

Many mention that understanding the business is crucial for analysts, yet seldom provide clarity on how this contributes to their value.

Confusion often stems from mixing up the responsibilities of decision-makers and analysts. Here’s a straightforward breakdown:

• An analyst supports their decision-makers.
• A decision-maker serves their organization.

For those in hybrid roles, understanding the business is fundamental. As a decision-maker, you are tasked with defining how value is created, prioritizing tasks, and identifying opportunities for business optimization.

The essence of analytics is not only about the what and why — that falls to the decision-maker — but also the how, which is the analyst’s domain.

Decision-makers require analysts when they can’t sift through and summarize all potentially useful information themselves. In that sense, the analyst acts as an extension of their decision-maker’s capabilities.

To truly add value, analysts must learn to serve their decision-makers effectively. One key asset? Listening skills. Engaging in meaningful conversations, not just analyzing data, is vital. Strong communication abilities are essential as well, enabling analysts to convey insights seamlessly.

The most impactful contribution an analyst can make is to prompt decision-makers to explore options they hadn’t considered before, effectively hunting for essential unknowns.

In times of prosperity, this role is about “fueling innovation” and “seizing new opportunities.” However, during challenging periods, it shifts to “identifying threats” and “preventing disasters.” Regardless of the context, both functions revolve around exploring information to inspire leaders.

An analyst’s duty is to present executives with thought-provoking yet feasible options.

A dedicated analyst prioritizes being as helpful as possible: they engage in proactive data exploration, anticipate follow-up inquiries, and minimize wasted time for their decision-makers. This involves developing an instinct for what is crucial versus merely interesting, allowing them to glean insights from their decision-maker’s expertise.

If you’re a pure analyst, your value is measured by your effectiveness in serving your decision-maker — both reactively, by answering specific queries, and proactively, by encouraging innovative thinking.

Conclusion

In summary, amateur analysts often overlook the true essence of analytics, lacking a clear grasp of its value. Professional analysts, however, recognize that:

If you’re a hybrid decision-maker, your worth is assessed by the quality of your choices and actions, with analytical skills as a supporting tool.

If you’re strictly an analyst, your value hinges on your ability to serve your decision-maker — both in direct responses and by inspiring fresh ideas.

In the next installment, we will explore the final two distinctions between amateur and professional analysts: Thinking Differently About Time and A Nuanced View of Excellence.

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