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Data & Intelligence

What is the Analytics Quotient, and how do you rank?

Similar to IQ, Analytics Quotient or AQ for short is a method that helps people and the organizations they work for measure how well they apply analytics to plans, operational processes and overall decision-making.
In its most simple form, AQ measures the readiness, ability and capacity to locate and apply insight to make better decisions. It measures your ability to act based on understanding history, and ability to forecasts and anticipate likely outcomes.

So how do you measure your organization’s AQ, and where do you rank on the maturity model?

The AQ model has two elements. The first is a numerical score calculated based some basic questions such as:

• What’s the quality of the information used to make decisions?
• Have you documented successful outcomes of analytics initiatives in your organization?
• What percentages of your decision-makers use analytics?
• How do you anticipate future events and results?

The second element is the AQ Maturity Model itself. Again, like IQ the higher you are on the scale, the better you’re likely to perform. The AQ Maturity Model is based on the lessons of 30 years and thousands of successful customer outcomes. The model reflects scores in the following stages:

• Novice – Score under 80
• Builder – 80 to 119
• Leader – 120 to 140
• Master – 141 and up

The categories can be easily understood with some simple examples:

Novice – At this first level, individuals or teams analyze their own data, typically using spreadsheets or basic query tools. Here, workers have limited historical view into performance and rely on “gut feel” to make decisions about performance. At this stage the negative effects of rudimentary analytics are most acutely felt, as outcomes are often hampered by inefficiencies, delays, miscommunication and the pain of missed opportunities. As challenging as the Novice stage is to operate in, the good news is that it’s the easiest to get out of. Every organization begins their analytics journey here and the path leading to the Builder stage is both well-worn and well-marked.

Builder – This stage of the AQ Maturity Model is defined by broader collaboration across teams – typically within one department – that use both historical and current views of data, as well as trending for past and future time periods. At this level, decision-makers may use dashboards to drill down or sum up complex information quickly. The Builder stage is where the value really begins for businesses using analytics.

Leader – These organizations are typified by VP-level accountability, with defined operational and financial metrics across more than one department. These organizations can combine data from various systems to achieve a cohesive view of conditions. Leaders of business analytics are tremendously competitive organizations. Not only are their individuals highly skilled in sophisticated analytical models and methods; the high likelihood of their having a Business Analytics Center of Excellence or a Business Intelligence Competency Center (BICC) in place means analytical insights are weaving their way into core business processes.

Masters – Leaders of business analytics are tremendously competitive organizations. Not only are their individuals highly skilled in sophisticated analytical models and methods; the high likelihood of their having a Business Analytics Center of Excellence or a Business Intelligence Competency Center (BICC) in place means analytical insights are weaving their way into core business processes.

So where does your organization rank? Are you a Builder? How do you compare to your peers and closest competitors?

Finding out could be as easy as taking a short survey. Check out IBM’s free AQ quiz and see how you compare and learn your score.

Take the AQ Challenge

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