What a Night on a Submarine Can Tell Us about Analytics in Strategy

I recently spent a night on a 1943 Pampanito Submarine.  During battle, this state of the art vessel relied on 16 to 28 staff to read and analyze instruments, identify threats, measure results and set the tactical strategy.  In an environment where 1 in 4 submarines were lost at sea, making the right decision was a matter of life or death, therefore it made every sense to dedicate as many staff as possible to the execution of every mission.  Submarines were very costly to build, yet they were the most effective combat vessels in the Navy per dollar spent because of their impact.  The submarine I was on had sunk 6 enemy ships and damaged 3 others.

It is a long stretch to compare the operation of a Navy submarine to how a Business should invest and run its Business Strategy department, however there are some parallels.
1.  Strategy and its execution is life or death for an enterprise in the long term.
2.  A successful strategy requires many highly trained individuals with each being focused on specific metrics to identify threats and opportunities.
3.  A business strategy needs a state of the art technology for speed to market and innovation.

World War submarines operated in vast open spaces where the location of the vessel relied on the measurement of the ocean floor.  If the constant measurements of the ocean floor were interrupted, the crew could get lost on the map.  The risk of incorrect measurement was exacerbated during strategic encounters, when staff had to distinguish the specific sound ship and submarine propellers to identify the type of enemy vessel.  They had to filter out the sound of sea life from sonar and estimate distance to targets or threats.  Highly trained personnel were able to distinguish the sound of approaching torpedoes and had to advise maneuvering tactics to avoid a hit.  Submarines operated as hybrid electric vessels with limited electrical charge which they had to use wisely.  Management often weighed actions now versus later when following enemy ships, sometime for days.  Management decisions were based on data gathered from mechanical instruments, mathematics, probability analysis and careful planning.  

Businesses operate in largely competitive environment full of threats and opportunities.  Strategic orientation requires understanding of multiple external factors, which is why a Strategy department needs dedicated professionals to each focus on select drivers.  These individuals need a solid track record of correct measurement and sound judgement.  They should not only recommend but state with certainty the strategic outline for the company. 

Strategy departments need to be able to identify a strategic journey from a tactical encounter.  A tactical encounter with a competitor requires short term action that is heavily focused on measuring the effect of specific short term events, such as week by week competitor pricing on company performance for example.  A business needs to recognize the outcome from a tactical encounter as either a win or a loss.  Furthermore, a business should improve its operation and aggressively seek new strategic encounters in order to realize more wins.  Finally, Management needs to recognize and promote successes, much like submarines maintained a battle flag and a "Clean Sweep" broom for displaying the result from bravery, hard work, and excellence.