In this phase, we dive into understanding how our inputs drive outputs, using structured analysis to detect patterns, pinpoint issues, and reduce variability. Building a culture of disciplined, data-driven evaluation was essential to improving business performance at Amazon.
Key Takeaways:
- We focus on understanding input-output relationships: The Analyze phase helps us distinguish true patterns (signal) from random fluctuations (noise) and enables us to control variability in performance.
- We use structured mechanisms for analysis: DMAIC demands that we move beyond ad hoc methods by creating formal processes and tools for analyzing metrics across the company.
- We built a culture of rigorous data review: Regular, structured reviews became part of our operating rhythm, reinforcing analytical thinking throughout our teams.
- We institutionalized the Weekly Business Review (WBR): One of our most powerful tools, the WBR was developed to enable comprehensive and recurring analysis, and it remains a central part of how we stay aligned and data-informed across all business units.
To dive deeper into Input Metrics Mastery and learn more from Bill and Colin, follow these links: