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Decision Equity

Book Description

In this book, the authors introduce Decision Equity as a breakthrough, overarching metric that can help free marketing managers from their existing mental models, and provide avenues to efficiently convert the vast amounts of data at their disposal into powerful information to make informed long-term and short-term decisions about products, customers, markets, and overall business health. There are four key objectives that we wish to achieve through this book.

First, they to introduce the underpinnings of a new flow-based measurement and management process that can promote truly unshackled thinking both within the marketing function as well as at its interface with other functional areas. Second, they demonstrate how firms can win by learning to conceptualize and discover the linkages between marketing and related non-marketing actions and their ultimate marketplace and financial consequences. Third, they provide guidance for how marketing managers and CMOs can significantly improve the outcomes of their decisions by following a verification-based linkage discovery process to connect marketing actions to profits. And fourth, they provide evidence for the efficacy of verification-based thinking centered on the principles of Decision Equity from successful marketing interventions and implementations in well-known organizations.

Table of Contents

  1. Title Page
  2. Copyright
  3. Contents
  4. Prologue
  5. Part I: Competing by Verification
    1. Chapter 1: Harnessing the Power of Data
      1. The Data Deluge
      2. Critical Leadership Skill
      3. Rising Cost of Errors
    2. Chapter 2: The Cost of Intuition-Based Decision Making
      1. Managerial Decision Making
      2. Alternate Models of Decision Making
      3. The Case for Managerial Intuition
      4. The True Cost of Intuition
    3. Chapter 3: Ten Questions to Ask Your Mental Models
      1. The Myth of One
      2. The Myth of Many
      3. Locus Focus: What Does It Pick Up Versus Leave Behind?
      4. This or Abyss
      5. Does the Model Have a Reverse Gear?
      6. Is the Model Forward Prescriptive or Backward Diagnostic?
      7. Data Analysis and Data Generation Process
      8. Objectives Versus Constraints
      9. Is the Model Synchronous With the Adoption Cycle?
      10. Half-Life of the Model
      11. Avoiding the Trap
    4. Chapter 4: Paradigm Cycles and Strategy Prisons
      1. The Formation of Strategic Prisons
      2. How Paradigm Cycles Work
  6. Part II: Decision Equity
    1. Chapter 5: The Ultimate Management Metric?
      1. What Is Decision Equity?
      2. A Case Study
      3. Defining Characteristics of Decision Equity
      4. The True Residence of Equity
      5. Summary
    2. Chapter 6: Understanding Decision Equity: A Flow-Based Approach
      1. The Complexity of Strategic Marketing Decisions
      2. Overcoming the Challenge of Complex Decisions
      3. A Systems Approach to Marketing Decisions
      4. Linking Key Metrics Through Flowprinting
      5. Measurement Myopia
    3. Chapter 7: Linkage Analysis: The Engine That Powers Decision Equity
      1. Introducing Linkage Analysis
      2. The Academic Foundations of Linkage Analysis
      3. The Benefits of Linkage Analysis
    4. Chapter 8: The Decision Equity Metric: Operationalization
      1. Operationalizing Decision Equity: The Importance of Flowprinting
      2. Options for Operationalizing Decision Equity
      3. Case Study: Estimating Decision Equity Relative to Other Options
      4. Confidence in Decision Equity Comparisons
  7. Part III: Pursuing Excellence Through Decision Equity
    1. Chapter 9: A Best Practice Approach to Linkage Analysis
      1. A Framework for Conducting Linkage Analysis
      2. The Proposed Ten-Step Filtration Process
      3. Concluding Thoughts
    2. Chapter 10: Developing a Linkage Orientation
      1. Mission, Vision, Linkage!
      2. One Final Note
  8. Epilogue
  9. Appendix: The “Analytical Tools” of Linkage Analysis
    1. Introduction
    2. An Important Distinction: Averages and Variation
    3. Working With Covariation
    4. The Three Essential Analytical Tools
    5. Selecting an Appropriate Technique
    6. Recommendations
  10. Notes
    1. Chapter 1
    2. Chapter 2
    3. Chapter 3
    4. Chapter 4
    5. Chapter 5
    6. Chapter 6
    7. Chapter 7
    8. Chapter 8
  11. References