From Guesswork to Goldmine II: Interview with Herbert H?ckel, CEO of moweb

Hey Folks,

this episode if Waves of Transformation is special! I am super excited and happy that I was able to win Herbert H?ckel for an Interview on evidence-based-management. Herbert is the CEO of moweb and a leading expert on the evidence-based and data-driven management. This makes this episode an in-depth sequel from last episode. Check it out here, in case you missed it!?

Have you met Herbert H?ckel ?

Herbert is an esteemed market researcher, speaker, coach and author based in Düsseldorf, Germany. With almost three decades of experience in the field of market research, Herbert has established himself as ab absolute expert in evidence-based management. Through his work at moweb Marktforschung , an independent global market research institute specializing in digital opinion surveys, Herbert has witnessed the untapped potential and transformative power of digital market research.

Herbert firmly believes that the possibilities and opportunities presented by digital market research are far from exhausted and that they hold the key to providing accurate and insightful answers to any entrepreneurial inquiry. Guided by his motto, "The more you talk to your customers, the clearer you see things!" he emphasizes the importance of open dialogue and understanding between businesses and their stakeholders.

As the owner and managing director of moweb research, Herbert and his team are dedicated to delivering the highest standards of methodological excellence, questionnaire design, panel management, data analysis and customer service. Their commitment to excellence extends globally, offering outstanding full-service market research solutions without compromising on quality.

Herbert H?ckel's expertise lies in quantitative research, qualitative research, online research and digital research methodologies. His knowledge and insights have been published in esteemed works such as "MindsetMatching? in Social Media using AI" and "Customer Centricity Mindset?: Truly Understanding Customers, Successfully mastering disruption." His newest publication “Think Like Your Customers: To understand, convince and inspire them” is scheduled for release in August 2023 (Titles translated from German).

In this exclusive interview, we have the opportunity to delve into Herbert's expertise in evidence-based management, exploring its significance, applications and the benefits it offers to organizations seeking data-driven decision-making.

So, without further ado, let's dive into the world of evidence-based management with Herbert H?ckel!

Nico: How would you define evidence-based management, and what role does it play in decision-making for businesses today?

Herbert: Evidence-based management, at its core, refers to the methodical process of basing organizational decisions on the best available evidence rather than relying solely on intuition, outdated practices, or anecdotal stories. This approach is deeply rooted in the scientific methodology and places a premium on facts, systematic observation, and quantifiable data.

In today's dynamic business landscape, evidence-based management plays a vital role in facilitating sound decision-making. It enables organizations to tackle complexity and navigate through ambiguity. By grounding decisions in empirical evidence, it reduces uncertainty and enhances the predictability of outcomes. This evidence can come from various sources, including organizational data, professional experience, stakeholder needs, or even the latest scientific research.

An important aspect of evidence-based management is the focus on impact. In a business context, impact is the measurable difference an organization's actions have on its external environment, which can include everything from market trends to customer behaviour and societal norms. Evidence-based management emphasizes the importance of not just making decisions based on hard evidence but also measuring the impact of those decisions.

For instance, if a company launches a new product based on comprehensive market research, it should not stop at merely rolling out the product. Instead, it needs to continually track metrics like sales figures, customer feedback, and market share to understand the impact of its decision. This ensures a feedback loop that allows the organization to continually update and refine its understanding based on the actual impact its decisions have.

Nico: How would you define evidence-based management and what role does it play in decision-making for businesses today?

Herbert: For me personally, evidence-based management is about fostering a mindset of continual learning and improvement. The goal is to create a cycle where evidence informs decision, decision leads to action, action results in impact and the impact provides further evidence.

Also, evidence-based management encourages businesses to be transparent in their decision-making processes. When decisions are backed by clear, objective evidence, it promotes trust among stakeholders, including employees, customers, and investors. This transparency not only enhances the organization’s reputation but also fosters an environment where everyone feels involved in the decision-making process.

In our VUCA world, the need for sound decision-making is more crucial than ever. However, a more suitable term to describe today’s marketplace reality is BANI. The BANI concept provides a framework to understand and navigate the complexities and uncertainties of our contemporary world:?

• Brittle suggests that our systems, institutions, and even societies are prone to breakage, despite appearing strong on the surface. The brittleness refers to the lack of resilience and adaptability when faced with stressors and changes, which can lead to catastrophic failures.
• Anxiety speaks to a pervasive sense of unease and fear that permeates individuals and societies. This could be due to a myriad of factors such as economic instability, political upheaval, environmental crises, or personal insecurities.
• Nonlinear refers to the increasingly unpredictable and disproportionate cause-effect relationships in our world. Small actions can have massive, unforeseen consequences and likewise, significant efforts may lead to minimal results. This nonlinearity is further amplified by complex interactions among various systems, which can lead to sudden and unexpected outcomes.
• Incomprehensible signifies that our world is increasingly difficult to understand and make sense of due to information overload, the proliferation of misinformation and disinformation, and the sheer complexity of global systems and interactions.

In a BANI world, traditional models of planning and prediction can fall short. As a result, it is important for organizations and individuals to cultivate agility, resilience, and a mindset of continual learning. Evidence-based management practices and data-driven decision-making can play a crucial role in navigating the uncertainties of the BANI world. They allow organizations to continuously learn, adapt and optimize their strategies based on data and factual evidence, thus providing a semblance of control and direction in a world that often feels brittle, anxious, nonlinear, and incomprehensible.

Nico: Could you share some examples of how evidence-based management has helped your clients overcome challenges and achieve success? Maybe there is a specific case, we can dive into?

Herbert: Certainly, I’d be happy to share a detailed example. One of our most notable cases involved a client in the e-commerce industry. They came to us with a significant challenge: they were experiencing a substantial drop in their customer retention rate. Despite numerous internal discussions and brainstorming sessions, they couldn’t pinpoint the root cause of this issue. They needed an outside perspective and data-driven insights, which is where our team at moweb research stepped in.

Our initial step involved conducting a quantitative online research study aimed at their current customers. This process allowed us to gather vast amounts of data on their customers’ experiences, buying behaviours, and reasons behind their loyalty or lack thereof. We used carefully crafted questionnaires, designed to elicit honest and detailed responses. With thousands of responses collected, we had a treasure trove of data, but the real work was making sense of it all.?

Next, we supplemented the survey data with social media listening. By observing social media – for example, reviews, comments, and conversations - we could understand the sentiment and perceptions influencing their behaviours. Social media platforms provide unfiltered opinions, often containing insights that customers might not share directly with the company.

Thirdly, we were given access to the company’s internal data sources, such as CRM data as well as the individual purchase data from the e-commerce platforms, which allowed us to build rich-data key customer personas and allowed us to cluster the customer types, based on lifetime value as well as loyalty and return purchase propensity.

?The analysis of the survey data (opinions) combined with the hard data from the customer CRM (experience) revealed an interesting trend. Customers loved the products offered by the company but were extremely disappointed with the company’s post-purchase service. They felt neglected after the purchase, as their queries and complaints were not handled adequately. This disappointment was causing them to leave and look for alternatives with better after-sales service.

Armed with this data-driven insight, our client was able to refocus their efforts on improving their post-purchase service. They invested in training their customer service staff, introduced new channels for customer communication, and implemented a follow-up system to ensure customer satisfaction post-purchase. An obvious focus within this programme was to empower the after-sales service teams. They reorganised their telephone support team from one offshore third-party call centre to decentralised local service agents in-house. They additionally installed the so-called “99 Euro rule”: if the customer service agent can solve the customer's issue or relieve dissatisfaction for under 100 Euros, they are free to do so without consulting a team manager.

The results were outstanding. Within a few months of implementing these changes, the client managed to halt the decline in customer retention. Moreover, they observed a steady increase in the retention rate, improving by 30% over the next year. But it wasn’t just about the numbers. Customers started sharing positive experiences online and the company now has a very good reputation in terms of customer service.

This case is an excellent example of how evidence-based management can help businesses navigate complex challenges. By relying on hard data and quantifiable evidence, our client was able to understand the root cause of their problem and implement a solution that had a meaningful, measurable impact on their business.

Nico: In your experience, what are the key steps or processes involved in implementing evidence-based management within an organization?

Herbert: Implementing evidence-based management within an organization is not merely a linear process, but rather, it is a transformative journey that requires unwavering support from the top levels of management. It’s a little bit like eating salted peanuts: Once you start, you just can’t stop anymore.

However, for this to be viable and successful, it is critical that the company leadership sponsors and champions this transformation. Without 100% commitment and backing of top management, efforts towards evidence-based management will invariably face high hurdles and are destined to fail.

Assuming the top brass is on our side, there are still five factors in play that are of pivotal importance in guaranteeing a successful transformation:

1. Literacy and auditing
2. Correlation versus causality
3. Willingness to fail fast
4. Keep it simple stupid
5. Longevity and impact

The journey, therefore, begins with cultivating a culture that values and appreciates data literacy and inquiry. Leaders should promote a culture of learning that encourages questioning, fosters curiosity, and values the use of data in decision-making. This isn’t just about having the right tools, but creating an environment that facilitates their effective use and understanding. Continually auditing all available internal and external sources is paramount. It requires strategic direction from stakeholders to recognize the right kind of data that will facilitate effective decision-making. This necessitates the combination of internal data (such as sales figures, customer data) with external data (like market trends, competitor analysis) to build a holistic view of the business landscape.

?Once the data sources are defined, rigorous data analysis comes into play. This is where advanced tools and skilled data analysts, fostered and invested in by leadership, play a vital role. Data alone has no value, it’s worth is realized when it is scrutinized, analysed, and transformed into actionable insights. At this point, I would like to raise awareness for the difference between correlation and causality. The more data you look at, the more correlations you will end up finding, but causality drives impact. You need to find the hidden gems within the data, the true causal effects that drive business metrics and have impact on your key performance indicators.

As you embark on this transformation, you will invariably fail from time to time. The company’s management must therefore nurture a positive learning culture with the principle of “fail fast, learn fast” at its core. This principle is not about reckless decision-making, but about taking calculated risks based on the evidence at hand, learning from the outcomes and rapidly iterating on the strategy. In today’s business environment, waiting for perfect information is not an option. Instead, companies need to make the best decisions they can with the data they have, then monitor the outcomes closely. If a decision doesn’t lead to the expected results, the key is to quickly recognize this, learn from what the data is telling you, and adjust the course of action.

The saying “Keep it simple, stupid!” is absolutely true for data-driven decision-making and evidence-based management, as more data does not necessarily equate to more valuable insights. The magic happens when the data complexity is reduced to the absolute minimum and the truly vital insights that drive impactful decision-making can be identified. This process, often referred to as data reduction or data simplification, involves distilling large datasets into concise, understandable information. It’s about focusing on the most meaningful and actionable insights, rather than getting lost in the vast sea of data. In essence, it’s not the quantity of data that matters but the impact derived from it.

?Finally, an ongoing commitment to review, learn and adapt is vital. Evidence-based management isn’t a one-off initiative. It’s a continuous cycle of evidence collection, analysis, application, and review. Management must be dedicated to maintaining this cycle, adjusting their strategies based on new evidence, and constantly striving to refine their decision-making processes. Simply providing KPIs and driver analyses on a weekly, monthly, quarterly, or yearly basis is a nail in the coffin. By the time you understand what is happening in the marketplace, it will be too late to adapt to it. Evidence-based and data-driven management is closely tied to the Japanese philosophy of Kaizen – which loosely translated means “lifelong learning” and “continuous improvement”.

Nico: What are some common misconceptions or barriers that businesses face when adopting evidence-based management practices and how can they be overcome?

Adopting evidence-based management is not without its challenges, but the potential benefits make it a worthwhile pursuit. By understanding and addressing these common misconceptions and barriers, organizations can successfully navigate their way toward becoming more data-driven, insightful, and effective.

Evidence-based management involves collecting and analysing data to gain objective insights, which can sometimes reveal inconvenient or uncomfortable truths about an organization’s performance, practices, or strategies. While this may seem like a drawback, it is actually a strength. Facing these truths head-on allows organizations to address underlying issues and make necessary improvements. Ignoring them could lead to greater problems in the future.

Change is often met with resistance and the shift towards evidence-based management is no exception. This resistance can come from various sources, such as employees feeling threatened by increased scrutiny, or managers who are used to making decisions based on intuition or experience.

Overcoming this resistance requires strong leadership, clear communication about the benefits of evidence-based management, and a supportive culture that encourages learning and adaptation. However, using evidence to justify necessary transformative processes (including a change in the company’s mission, vision, purpose, or culture) can make the sometimes-unwanted changes easier for stakeholders to adopt.

With the vast amounts of data available today, there’s a risk that organizations can become overwhelmed and lose sight of what really is important. This is where the skill of reducing data complexity comes into play. By focusing on key strategic objectives and relevant KPIs, organizations can filter out the noise and focus on the insights that truly drive impact and value.

Many organizations believe that evidence-based management is an expensive undertaking, involving significant investment in data gathering, analysis tools, and skilled personnel. Which it does! Really! Because you need to invest in high-quality data, good people and provide them with the right technology. However, it’s essential to view these as strategic investments rather than costs. The return on investment (ROI) for evidence-based management can be substantial. By making more informed, data-driven decisions, organizations can reduce inefficiencies, mitigate risks, and exploit opportunities, leading to substantial cost savings and revenue growth in the long run.

Nico: What are some best practices for effectively communicating and presenting data-driven insights to key stakeholders within an organization?

Herbert: As evidence-based management is a process, there are no best practises. Each journey is individual and unique. Nonetheless, there seem to be a few success criteria, I notice over and over again.

?Data in itself can be cold and impersonal, which may lead to disengagement from the audience. To circumvent this, it is important to frame the data in a narrative – to tell a story with it. Stories have the power to connect with people on an emotional level, making the information more relatable and memorable. A well-constructed narrative around the data can provide context, highlight the implications and underscore the necessity for action. It transforms the data from abstract figures to a meaningful story that drives the message home.

Also, the manner in which the data story is conveyed is just as important as the story itself. Effective rhetorical skills, good dashboards, and clear data visualisation help ensure that the audience not only understands the insights but is also persuaded by them. This includes clear and concise language, logical argument structure, compelling delivery, and a keen sense of the audience’s perspectives and potential objections. Mastering the art of presentation can help to empower data-driven insights in a more persuasive and impactful way.

Lastly, data-driven insights often originate from complex analyses and large data sets. However, complexity can be a barrier to understanding and can dilute the message. Therefore, it’s crucial to distill these insights down to their most simple, essential form. Simplifying the data doesn’t mean dumbing it down, but rather making it clear, accessible, and actionable. This includes focusing on the key takeaways, using simple language, and employing visual aids like charts and infographics to illustrate the insights in an easily comprehendible way.

Nico: What role does market research play in the field of evidence-based management??And how can market research data help to improve collaboration with customers?

Herbert: In the field of evidence-based management, market researchers play a pivotal role as navigators, enabling businesses to traverse the sea of data, deriving meaningful insights, and facilitating informed decision-making. The expertise of market research professionals is crucial to help businesses answer pertinent questions, test assumptions, and predict trends.

Market researchers are obviously instrumental in gathering and analysing diverse data sets – from customer feedback and social media interactions to sales statistics and market trends. They employ a wide range of methodologies, both qualitative and quantitative, to provide a comprehensive understanding of the business landscape. It is their role to sift through the noise, identify meaningful patterns and provide actionable insights.

Additionally, market researchers play a crucial role in aligning an organization’s strategy with its customers’ needs and expectations. Through their research, they reveal customer preferences, behaviours as well as wants and needs. This in-depth understanding of the customer allows businesses to tailor their products, services, and communication strategies more effectively, leading to improved customer satisfaction and loyalty.

Beyond that, the role of market researchers is far more significant than simply “informing” businesses. Market research helps to foster better collaboration and relationships with customers. With their ability to translate customer behaviour and feedback into concrete data, they help build a bridge between the organization and its customers. This data can be used to engage customers in meaningful dialogue, seek their input in product development, or personalize their experience with the company.

In essence, market research data enables a more customer-centric approach, creating a feedback loop that benefits both the business and its customers.

Nico: With the increasing availability of data, AI, and advanced analytics tools, how do you see evidence-based management evolving in the future?

Herbert: As we move from the digital to the artificial era, evidence-based management is poised to evolve in several significant ways, greatly enhanced by the increasing availability of advanced data analytics. Nonetheless, I see two main issues here – more available data and more analytical superpower!

There is too much data…

The sheer data volumes created every day are far too large for humans to analyse, interpret and understand. The sheer volume of data available to organizations is multiplying at an unprecedented rate. For example: a connected car is estimated to produce some 26GB of data per hour – that’s about 30 hours of HD DVD viewing pleasure. The proliferation of IoT devices, online transactions, social media interactions, and more, are creating a treasure trove of data. This will enable organizations to derive insights not just from their internal data, but also from vast external data sources, painting a more comprehensive picture of their operating environment.

…but there can never be enough data!?

Advanced analytics tools and techniques are becoming more sophisticated and accessible. Machine learning, predictive analytics, natural language processing, and other AI technologies are making it possible to analyse large, complex datasets quickly and accurately. These tools not only speed up data analysis, but they can also uncover patterns, clusters, correlations, and causal effects that may not be apparent to the human eye. This will allow organizations to identify trends, predict future scenarios, and make proactive, data-informed decisions.

In this field of tension, AI will become embedded in our everyday working lives. We will see a rise in augmented decision-making. This is where AI assists human decision-makers by providing data-driven insights and recommendations, but the final decision is still made by a human. This hybrid approach leverages the strengths of both AI (data processing, pattern recognition) and humans (contextual understanding, ethical considerations), leading to more effective decision-making.

Strangely enough, this adds a dimension of non-evidence-driven decision-making in an otherwise very binary reality. Whilst I am a strong believer in evidence-based management, the dimension of human intuition still plays a significant role in corporate management and should rightfully continue to do so. Not everything that - the data suggests - CAN be done, should BE done!

Nico: Can you discuss the ethical considerations that arise when using customer data for evidence-based management? How can organizations maintain trust and privacy while leveraging data-driven insights?

Herbert: Ethical considerations form a cornerstone of any data utilization strategy, especially when it pertains to using customer data for evidence-based management. The trust that customers place in an organization is paramount and mishandling of data can seriously compromise that trust. Balancing the pursuit of data-driven insights with the responsibility to respect privacy and maintain ethical standards is an ongoing challenge for organizations.

I would personally start with being honest and open about any data used and communicating this in a manner easily understood by the vast majority of customers. Organizations must be clear and forthright about the kind of data they are collecting, how it is being used, and why and for what. Customers should have a clear understanding of what they are consenting to when they provide their data. Moreover, organizations should strive to provide customers with a certain level of control over their own data, such as options to opt-out or a request for data deletion.

Maintaining the highest possible technical and systematic standards for data security is also a crucial ethical responsibility. Implementing strong data protection measures and having robust technology in pace not only helps to prevent breaches that could compromise customer data but also serves to demonstrate to customers that their privacy is being taken seriously.?

Furthermore, we must be aware of the potential ethical and moral implications of data-driven actions. For example, using data to manipulate customer behaviour or exploit vulnerabilities should be considered ethically wrong and morally reprehensible, even if it’s technically legal. Therefore, organizations should consider establishing a comprehensive data ethics policy, with clear guidelines on how data should be collected, used and protected. Such a policy can help to ensure that all employees understand their responsibilities and that data is handled in a consistent and ethical manner.

Ethical considerations in the use of customer data for evidence-based management are numerous and complex. By prioritizing transparency, data security, fairness, ethical decision-making and clear guidelines, organizations can maintain trust and uphold their ethical responsibilities while still leveraging the power of data-driven insights.

Nico: What advice would you give to businesses that are considering adopting evidence-based management practices but are unsure of where to start or how to make the most of their data?

Herbert: For businesses that are considering adopting evidence-based management practices but are unsure of where to start, I would suggest the following three key steps:

?Define a Clear Vision and Goal!

As with any significant undertaking, having a clear vision and goal is paramount. What do you hope to achieve with evidence-based management? How will it fit into your broader business strategy? These questions will help provide direction and purpose to your efforts. Goals could range from improving customer satisfaction, enhancing product offerings, reducing costs, or any other objective that aligns with your overall business strategy.

Think Big, Start Small!

It's important to dream big – to envision the transformative potential of evidence-based management for your business. However, it's equally important to start small. Starting with a manageable project can allow you to gain familiarity with the process, gather early wins, and learn from any missteps before scaling up. You might, for instance, start by applying evidence-based practices to a single department or project before rolling it out across the entire organization.

Ask the Experts!

Evidence-based management relies heavily on accurate data, sophisticated analytics and informed interpretation. If these capabilities do not currently exist within your organization, it might be beneficial to seek external expertise. Business consultants, market research agencies, and data scientists can provide the skills and knowledge needed to successfully implement evidence-based practices. They can guide you through the process, help avoid common pitfalls and ensure you're making the most of your data.

Adopting evidence-based management is a long journey, a transformative process, and sometimes a difficult valley to cross! The implementation requires a thoughtful approach, a clear vision, and a willingness to learn. By defining clear goals, thinking big but starting small and consulting experts, businesses can set themselves up for success in their journey towards becoming a data-driven organization.

Nico: Finally, how can people get in touch with you and follow you, if they would like to dive even deeper into evidence-based management?

Herbert: You can always reach out to me directly via my LinkedIn profile. I regularly share insights, articles, and updates about the latest trends in market research and evidence-based management there.

Click here to get to Herbert's LinkedIn profile.

Additionally, I frequently contribute to the blog on the moweb research GmbH website. Here, I delve into more detailed discussions on various topics in our field. It is a great resource for anyone looking to learn more about the intricacies of market research and data-driven management.

Click here to get to the moweb blog.

For more personalised inquiries or detailed discussions, you're welcome to contact me directly via email. Please visit the moweb research GmbH website for my contact details.

moweb GmbH??????????????????????????????????????????????

Phone +49 211 828 2800

info@mo-web.net

www.mowebresearch.com

I look forward to engaging with anyone passionate about evidence-based management. The exchange of ideas and experiences is how we all grow, learn and push the boundaries of what's possible in our field. I welcome the opportunity to hear from you and explore this fascinating domain further.

Outro

Thank you Herbert H?ckel for sharing you knowledge with me an the readers of Waves of Transformation! I learned a ton and you hope you, the readers, feel the same way!

Feel free to share this Newsletter with you network and reach to Herbert and me for any questions.

Please, let me know if you liked this interview-format. There might be a risk of this happening again unless you ask me not to do so ;-)

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Catch the wave and ride with purpose!

Nico