To identify how to achieve your selected business outcome, you need to answer your analytic question with evidence. Professor Misra explains how to start: instead of jumping immediately into data, first think critically about how your world works in relation to the core metric at the heart of your selected business outcome.

QUESTION

To identify how to achieve your selected business outcome, you need to answer your analytic question with evidence. Professor Misra explains how to start: instead of jumping immediately into data, first think critically about how your world works in relation to the core metric at the heart of your selected business outcome. You already have a hunch about how things might work differently than currently thought or could be changed to positively impact your core metric. Here, you’ll elaborate on that hunch to develop a theory. That may sound complex, but you’ll see that for our purposes a theory is a simple statement that provides an explanation of the relationship between one or more factors and your core metric. You will identify a theory by following these steps.

1.Describe the Status Quo Understanding: Start by capturing the current “accepted wisdom” in your business for what drives your core metric. What key factors impact it and how do they “roll up” to your core metric? Create a flowchart to represent these relationships visually.

2.Articulate Your Theory: Now return to the hunch that motivated your analytic objective.

a.What do you suspect the “accepted wisdom” misses about your core metric that would allow your organization to improve it. Describe this in the table provided.

b.Now, write 1-2 sentences that explain how this missing factor or factors impact your core metric.

3.Update the Status Quo Understanding: Revise the flowchart to incorporate the factor or factors you articulated in your theory. Indicate any new factors in red.

4.Define Your Factors: Capture the factors you’ve identified in a simple list. To ensure you can communicate about them effectively, briefly define each. Then, decide which you wish to include going forward. You may have identified some that do not have a significant impact. To limit your scope, you do not need to carry those forward.

ANSWER

Based on the mention of managers in a business case, one possible theory that could be developed is the “Managerial Influence Theory.” This theory suggests that the actions, decisions, and leadership styles of managers directly impact various aspects of organizational performance and outcomes.

The Status Quo Understanding

The accepted wisdom in many organizations is that managers play a crucial role in driving employee motivation, productivity, and overall team performance. Key factors that impact these outcomes include effective communication, goal setting, employee engagement, performance feedback, and leadership practices. These factors “roll up” to the core metric of organizational performance and success.

The Theory

The Managerial Influence Theory proposes that beyond the commonly acknowledged factors, there are additional elements that influence organizational performance. These may include the manager’s ability to foster a positive work culture, promote innovation, facilitate collaboration, adapt to changing environments, and empower employees. By focusing on these often overlooked factors, organizations can enhance their core metric and achieve improved outcomes.

How the Missing Factors Impact the Core Metric

The missing factors in the accepted wisdom regarding managerial influence can have a significant impact on the core metric of organizational performance. For example, a positive work culture created by managers can enhance employee satisfaction and motivation, leading to increased productivity and lower turnover rates. Effective collaboration and empowerment can foster innovation and creativity, resulting in improved problem-solving and decision-making processes. Adaptable managers can navigate complex business environments and drive organizational agility, ensuring long-term success.

Updating the Status Quo Understanding

The flowchart representing the status quo understanding of managerial influence would include the commonly recognized factors such as communication, goal setting, employee engagement, performance feedback, and leadership practices. Additionally, the revised flowchart would incorporate the missing factors identified in the theory, such as work culture, collaboration, innovation, adaptability, and empowerment. These new factors would be indicated in red to highlight their inclusion.

Defined Factors

Work Culture: The shared values, beliefs, and behaviors within an organization that shape the work environment and employee experience.

Collaboration: The process of individuals working together to achieve common goals, fostering synergy and collective problem-solving.

Innovation: The generation and implementation of new ideas, products, or processes that provide a competitive edge and drive organizational growth.

Adaptability: The ability of managers to adjust strategies, structures, and processes in response to changing internal and external factors.

Empowerment: Granting employees autonomy, authority, and resources to make decisions and take ownership of their work.