How Balancing “Predictors” and “Optimizers” Makes a Business More Resilient
What every company needs to do, but many don’t do well.
A Modern “Crystal Ball”
From the mythical age to the modern era, leaders have longed for a “crystal ball view” into what’s coming next that will enable them to plan out their resources, protect their “high ground”, and place themselves in a winning position.
Today, “executive” is, of course, another word for “leader.” Executives lead the charge to deliver value for their customers and propel their companies forward.
As the leaders of long ago, executives today still long to see “what’s next.” Companies invest millions and billions annually on tools that act as a “crystal ball” for the modern business world, like market research and trend reports.
However, whenever anyone discusses the future, there is an inherent element of uncertainty. Nobody can tell how events will play out with 100% accuracy. All efforts to predict the future are all based on the “likelihood to happen.”
The 2020 Curveball
2020 is the perfect example. Nobody could have everything that 2020 held. In fact, Insider Magazine published an article on April 11th with the headline, “April 9th marked 100 days into 2020. Here are 26 shocking things that have happened so far.” Now we’re 347 days in — and that list has continued to grow.
With that in mind, companies must plan for what’s likely to happen while balancing uncertainty.
“Predictors” versus “Optimizers”
At INTO, we call these two forces “predictors” and “optimizers.”
A predictor is an action that leverages existing data to predict what’s likely to happen with as much certainty as possible. Predictors bring clarity. Predictive research allows a company to take action based on what’s most likely to happen and position themselves accordingly.
An optimizer is an action, process, or tool that increases a company’s agility. Optimizers embrace uncertainty. Another way to think of “agility” is one’s “ability to pivot”. With the correct optimizers in place, a company is able to pivot regardless of the future possibilities that become reality.
Investing in optimizers will never be a loss. If the future goes “according to plan”, then optimizers will act as amplifiers to predictive actions and investments. An optimizer will allow a company to continue to deliver additional value and a better experience. However, if unforeseen realities come to pass, optimizers will ensure that a company is equipped to take action, survive, and even stay profitable in tough times.
A Practical Example
Investment in an eCommerce retail site is a practical example of an optimizer. Companies that had invested in their eCommerce and digital advertising channels were able to make the pivot — and even stay profitable — when brick-and-mortar stores closed in 2020. Companies that had not yet invested in eCommerce as an optimizer were not able to be that agile, and lost profits. Companies with a strong eCommerce channel have (and will) continued to benefit even when some brick-and-mortar locations have reopened. It amplifies their overall efforts to add value and deliver a better experience.
Striking the Balance
In strategic planning efforts, having a balance between predictors and optimizers is key. That relates to the investment a company makes and even the tasks that its team(s) undertakes. Balancing predictive and optimizing efforts is a source of competitive advantage — companies who balance the two well will have greater resilience and will gain more conversions in the long-run compared to their competitors.
INTO gives companies the research they need to plan for the future while offering insight on how to optimize their business to best accommodate uncertainty. For more information, visit into.agency.
