Latest / Chief in Tech Deep Dive Shortcast / Chief in Tech S1E49 - Hazal Muhtar : Moving Past the Buzz – Cultivating a Truly Data-Driven Organization
Transcript
- 0:00Imagine handing out, you know, your premium physical
- 0:02product for free to thousands of your most active
- 0:06customers. Yeah, you would totally expect a massive
- 0:09spike in engagement. Exactly. You're thinking
- 0:11maybe a wave of positive social media buzz, but
- 0:14instead you get nothing. I mean, the initiative
- 0:16just completely bombs. Wow. So just millions
- 0:19of dollars in potential revenue, plus countless
- 0:22hours of operational effort, all completely down
- 0:25the drain. Yeah, all of it. And that is exactly
- 0:28what happened at the fintech giant, Wise. It
- 0:30is a staggering scenario, honestly. And what
- 0:33makes it so fascinating is that Wise wasn't lacking
- 0:36data, right? I mean, they had mountains of it.
- 0:39Right. But having data and actually being a genuinely
- 0:41data -driven organization, those are two entirely
- 0:45different things. They really are. So today we
- 0:47are welcoming you to a deep dive into what it
- 0:50actually takes to build a data -driven culture
- 0:53from the ground up. And we are going to cut straight
- 0:55through the corporate jargon to do it. Absolutely.
- 0:57No buzzwords today. We are deconstructing exactly
- 1:01how WISE successfully scaled their analytics
- 1:04function from, well, a localized team of about
- 1:0640 people to this massive cross -functional powerhouse
- 1:11of 220 members. Which is an incredible leap.
- 1:15And because the reality is the gap between buying
- 1:18expensive data software and actually changing
- 1:20how a business operates, I mean, that is a graveyard
- 1:23for a lot of companies. Oh, totally. And scaling
- 1:26a team by that magnitude. It really forces you
- 1:29to confront every single flaw in your existing
- 1:30system. Every single one. Yeah. And the journey
- 1:33at WISE emphasizes a really surprising truth.
- 1:35Becoming data -driven is rarely about the technology
- 1:39stack itself. It's almost entirely about psychological
- 1:43and cultural shifts. OK. Let's unpack this, because
- 1:45I want to get away from the cliche that data
- 1:47is just, you know. the new oil. Right. Yes, please.
- 1:49It's not. I think a much better way to look at
- 1:51this is to think of an organization as a giant
- 1:54complex nervous system. Oh, I like that. Yeah.
- 1:56So your data pipelines are just the sensory nerves.
- 1:59They can transmit signals all day long, heat,
- 2:01pressure, pain, whatever. But if the brain doesn't
- 2:05have the architecture to interpret those signals
- 2:07properly, or if the reflexes are wired wrong,
- 2:12all those sensory inputs are entirely useless.
- 2:15That is a brilliant way to frame it. the raw
- 2:17inputs are completely meaningless without the
- 2:20cognitive architecture to actually process them.
- 2:23Right. You don't need more nerves. You need a
- 2:24better brain. Exactly. And what the leadership
- 2:27at Y has realized early on is that You have to
- 2:30design that cognitive architecture first. You
- 2:32have to build the human infrastructure. Yeah.
- 2:35And before we even get to the human element,
- 2:36I mean, we have to acknowledge the physical reality
- 2:39of scaling to 220 analysts. Oh, absolutely. If
- 2:42you just drop that many people into an organization
- 2:45without a rock -solid data infrastructure, you
- 2:48aren't getting insights. You are getting absolute
- 2:50chaos. It is a complete nightmare scenario. Right,
- 2:52because if the underlying data isn't clean, accessible
- 2:56and, you know, reliable. What happens? You just
- 2:59have 220 analysts arguing over whose dashboard
- 3:02is mathematically correct. Exactly. They spend
- 3:0490 percent of their week just cleaning broken
- 3:07tables and arguing with data engineers. So step
- 3:11one of this blueprint is establishing that single
- 3:14source of truth. The infrastructure has to be
- 3:18impeccable. Precisely, because you cannot build
- 3:21a skyscraper on a swamp. Ensuring that your data
- 3:24is available and consistent is just the non -negotiable
- 3:27foundation. Right. But once you have that infrastructure
- 3:29in place, you hit the real challenge, which is
- 3:31how do you organize the humans? Which is the
- 3:33hardest part. It really is. And this is where
- 3:36the analytics leader at WISE had a major advantage,
- 3:39primarily due to their very unconventional background.
- 3:42Unconventional how? Well, they didn't start on
- 3:44a predefined data science track. They actually
- 3:46synthesized a background in math, economics,
- 3:49and psychology. OK, I can easily see how math
- 3:51and economics apply there. You expect the person
- 3:53staring at the spreadsheets to understand statistical
- 3:56significance and market dynamics. But psychology,
- 3:59how does that actually play out mechanically
- 4:01in a data role? Well, let's look at a concrete
- 4:03example. Say you have a user interface change,
- 4:06and suddenly there is a 5 % drop in users completing
- 4:11a transaction. OK, pretty common scenario. Right.
- 4:14Now, a purely mathematical analyst calculates
- 4:17the drop. verifies it statistically significant,
- 4:20and reports the variance. Job done. Right. But
- 4:23an analyst trained in psychology looks at the
- 4:26exact same metric and evaluates the cognitive
- 4:29friction. Oh! Interesting. Yeah, they look at
- 4:31the new UI and ask, did we just add a step that
- 4:34creates trust anxiety? Are we asking for sensitive
- 4:38information way too early in the flow? I see.
- 4:40So the math identifies the exact location of
- 4:43the wound, but the psychology diagnoses what
- 4:45caused the injury in the first place. Exactly.
- 4:47That makes a ton of sense. You weren't just looking
- 4:49at a churn rate. You were looking at human frustration
- 4:52translated into numbers. Yes, exactly. And that
- 4:55behavioral perspective clearly influenced how
- 4:57they restructured the team. Because, I mean,
- 4:59the initial setup at Wise was pretty broken.
- 5:01Oh, very. They had 40 analysts, but those analysts
- 5:04were reporting directly to individual product
- 5:06managers. Which is incredibly common in early
- 5:09-stage tech companies. It is. A product manager
- 5:12wants to move fast, so they hire an analyst to
- 5:15sit next to them and just run the numbers for
- 5:18their specific feature. But the problem there
- 5:21is obvious. I mean, if you report directly to
- 5:23the person building the feature, you aren't an
- 5:26independent analyst. You're just a query machine.
- 5:29You exist just to answer whatever narrow, isolated
- 5:32question the PM has that morning. You have zero
- 5:35broader vision of how that feature impacts the
- 5:38rest of the ecosystem. Exactly. So they made
- 5:41a massive structural pivot. They defined a clear
- 5:44vision and mission for the analytics team as
- 5:47a standalone entity. OK. And they moved to what
- 5:50they called an embedded model. And this is a
- 5:53critical structural decision. They had to choose.
- 5:56Right. Do you build a centralized model where
- 5:58all the analysts sit together in a separate department
- 6:00and just take support tickets from the rest of
- 6:02the company? Right. Or do you embed them? Right.
- 6:05Let's define the mechanics of that embedded model
- 6:07because it can mean a few different things depending
- 6:08on the company. At WISE, this meant the analysts
- 6:12formally reported up through the data leadership
- 6:14structure. So their performance reviews, their
- 6:17standards, their career paths were all managed
- 6:19by data experts. Yes. But their physical day
- 6:22-to -day work was embedded within specific product
- 6:25teams. They sat with the product managers. They
- 6:27went to their daily standups. They focused entirely
- 6:30on that specific domain. And they chose this
- 6:33specifically to enhance contextual work. By being
- 6:37embedded, the analyst deeply understands the
- 6:40nuance of the product they're analyzing. Right,
- 6:42they aren't just looking at cold numbers from
- 6:44afar. Exactly, they understand the strategy behind
- 6:46the numbers. I'm tracking with you, but I have
- 6:48to play devil's advocate here. Okay, go for it.
- 6:50Human nature is to fit in with your immediate
- 6:52peers, right? So if I'm an analyst and I sit
- 6:55next to the lead product engineer every single
- 6:57day, we get coffee, we are friends, don't I lose
- 7:01my objectivity? It's a valid concern. Right.
- 7:04If she spends three months building a new feature,
- 7:06I don't want to be the guy who tells her it's
- 7:08a total failure. Don't embedded analysts just
- 7:11become an echo chamber for the product team,
- 7:14maybe unconsciously hunting for data that proves
- 7:16their friends are succeeding. What's fascinating
- 7:19here is how the dual reporting structure perfectly
- 7:22neutralizes that exact risk. Oh, really? Yeah.
- 7:25Yes. If the analyst reported to the product manager,
- 7:29the pressure to sugarcoat the data would be immense.
- 7:32But because their formal reporting line, you
- 7:34know, their boss, their promotion trajectory
- 7:36is tied strictly to the central data organization,
- 7:40they have the psychological safety, to be brutally
- 7:43honest. Ah, I see the mechanism now. The central
- 7:46reporting line protects their objectivity, maintaining
- 7:49the high standards of the data organization.
- 7:51But the physical embedding gives them the context
- 7:54they need to know what the data actually means.
- 7:56Right, because a centralized, isolated data team
- 7:59might be mathematically objective, but they are
- 8:01often completely detached from reality. Exactly.
- 8:04They might see a dip in engagement and spend
- 8:06three days running complex regression models,
- 8:10completely unaware that the product team simply
- 8:12moved a button on the homepage yesterday. Yeah,
- 8:15that makes sense. The embedded model bridges
- 8:17that gap. It's basically structural engineering
- 8:20for human behavior. That's a great way to put
- 8:22it. You are designing the org chart to force
- 8:24both honesty and context, but an org chart is
- 8:27just empty chairs. If you drop traditional isolated
- 8:31number crunchers into those embedded seats, the
- 8:33system still fails. Oh, completely? You need
- 8:36a completely different psychological profile
- 8:38to make that structure work. Which brings us
- 8:41to a massive hurdle, hiring. Scaling from 40
- 8:45to 220 people means you are constantly recruiting.
- 8:48Yeah, and the natural instinct in tech is to
- 8:51just filter for the smartest coders, the people
- 8:54who can write the most elegant Python scripts.
- 8:56But Wwise flipped that on its head. They implemented
- 8:58a very specific values assessment during the
- 9:01interview process. Technical skills were just
- 9:03the baseline. What they really prioritized was
- 9:06finding individuals motivated by solving customer
- 9:09challenges. They were hunting for an innate,
- 9:12restless curiosity. Exactly. And to understand
- 9:15how that values assessment worked mechanically,
- 9:18you have to look at how they evaluated problem
- 9:20solving. They wouldn't just hand a candidate
- 9:23a clean data set and ask for a specific metric.
- 9:26They would present a messy, ambiguous business
- 9:29scenario. I love that approach. Yeah. And the
- 9:32candidate who immediately starts writing code
- 9:34on the whiteboard. They fail. Right. But the
- 9:37candidate who pauses and asks a dozen clarifying
- 9:40questions about the user's intent, the market
- 9:42conditions, and the business goals, that is the
- 9:45curious mindset they were looking for. Because
- 9:47curiosity is the actual engine of insight. Yes.
- 9:50Think about it. An uncurious analyst runs a report,
- 9:54sees that European transfers are down 10%, hands
- 9:57the dashboard to the manager, and clocks out.
- 10:00But a curious analyst sees that same 10 % drop.
- 10:04starts slicing the data by device type, realizes
- 10:07it's only happening on the Android app, downloads
- 10:09the app themselves, tries to make a transfer,
- 10:12and discovers the biometric login is broken.
- 10:14I love that example. The uncurious analyst reports
- 10:17the weather, but the curious analyst fixes the
- 10:19roof. That is the exact difference. But what
- 10:22is truly impressive about Y's approach is that
- 10:25they didn't isolate this curiosity to just the
- 10:28analytics team. Right. They didn't just hire
- 10:30220 curious data wizards and say, all right,
- 10:33our job is done. You guys handle all the thinking.
- 10:36Yeah, that would defeat the purpose. Exactly.
- 10:38They initiated a massive push for data literacy
- 10:41across the entire organization. Data literacy,
- 10:44meaning they wanted marketing, operations, engineering,
- 10:47really everyone to have the tools and the baseline
- 10:50knowledge to understand and utilize data themselves.
- 10:53Yes. It's essentially teaching everyone in the
- 10:56company to speak a shared language so that data
- 10:58isn't some mystical artifact controlled by a
- 11:00few gatekeepers. It reminds me of how a truly
- 11:03high end Michelin star restaurant operates. Oh,
- 11:06how so? Well, it's like He's teaching the entire
- 11:08waitstaff how to taste the food, understand the
- 11:11obscure ingredients, and describe the complex
- 11:13flavor profiles to the guests. Oh, I see. In
- 11:16a mediocre restaurant, all the palate work is
- 11:18left strictly to the head chef in the back. If
- 11:21only the chef knows how the food is supposed
- 11:23to taste, the customer experience suffers. Right,
- 11:26because the servers can't answer any questions.
- 11:28Exactly. But if the whole waitstaff is flavor
- 11:31-literate, they can guide the customer, make
- 11:33real -time recommendations, and catch a flawed
- 11:35dish before it ever leaves the kitchen. If we
- 11:38connect this to the bigger picture, spreading
- 11:41that analytical thinking. throughout all levels
- 11:43of a company fundamentally democratizes decision
- 11:47-making. Right. If only the data team can pull
- 11:49and interpret numbers, they become a massive
- 11:52agonizing bottleneck. Oh yeah. Every minor operational
- 11:56decision has to wait in a two -week queue for
- 12:00an analyst to bless it. Which means the company
- 12:02moves at a snail's pace. Exactly. By fostering
- 12:06widespread data literacy, you empower people
- 12:08on the front lines to make informed choices quickly.
- 12:11Makes total sense. When the marketing team can
- 12:13run their own basic cohort analysis, they can
- 12:16iterate on a campaign in real time. Without this
- 12:20widespread literacy, companies operate in the
- 12:23dark and they make incredibly costly reactive
- 12:27mistakes. Because they react to surface -level
- 12:29symptoms. Right, because they lack the tools
- 12:31to understand the underlying causes. And that
- 12:34perfectly sets up the case study we mentioned
- 12:36at the very beginning of this deep dive. Let's
- 12:38look at what happens when an organization jumps
- 12:41to conclusions without that deep contextual analysis.
- 12:45Yes, let's get into it. Let's break down the
- 12:47free card fiasco. It is one of the most illustrative
- 12:49examples of treating a symptom instead of a disease.
- 12:53So Wyze had a specific business objective. They
- 12:56wanted to boost the adoption of their physical
- 12:58debit cards. People were signing up for the core
- 13:00service, moving money around, but a significant
- 13:03portion of them were not ordering the physical
- 13:05card. And the organization, likely feeling the
- 13:08heat to get those adoption metrics up, decided
- 13:11on what seemed like a frictionless solution.
- 13:15They said, Let's just manufacture a batch of
- 13:17cards and mail them out for free to our active
- 13:20users. It sounds perfectly logical on a whiteboard.
- 13:23It really does. The friction point appears to
- 13:25be the ordering process or the fee. So if you
- 13:28want people to have a card, just give it to them.
- 13:30Problem solved. Except it wasn't. It failed completely.
- 13:34The cards were mailed out, the expense was incurred,
- 13:37and engagement barely twitched. Most of those
- 13:40cards probably ended up straight in the trash.
- 13:42And the reason it failed is because mailing the
- 13:44cards only addressed the symptom, which was low
- 13:47adoption numbers. They skipped the crucial step
- 13:49of diagnosing the root cause. And here is where
- 13:52that embedded contextual curiosity becomes totally
- 13:56vital. Here's where it gets really interesting.
- 13:58Why did they fail? What did the embedded analysts
- 14:01actually discover when they finally dug into
- 14:03the why behind those low numbers? Well, what
- 14:06the data ultimately revealed was a complete mismatch
- 14:09in the use case. Oh, really? Yeah. When analysts
- 14:12actually segmented the user behavior, they found
- 14:14that a massive chunk of these users were utilizing
- 14:17the platform almost exclusively for large digital
- 14:22cross -border remittances. Right. So they didn't
- 14:24even need a card. Exactly. They were expats sending
- 14:28money home. or parents paying international tuition.
- 14:31Their entire financial flow was digital. A physical
- 14:34piece of plastic was completely irrelevant to
- 14:37their needs. Wow. So it wasn't that the card
- 14:40was too expensive or that the ordering process
- 14:43was too hard It was that the product itself offered
- 14:45zero value for that specific customer journey,
- 14:48right? Mailing them a physical card didn't magically
- 14:51make them want to go buy a coffee with it It
- 14:53just confused them exactly the initial initiative
- 14:56looked at the metric instead of the human being
- 14:58behind the metric Yeah, and this highlights a
- 15:01huge vulnerability in smart organizations The
- 15:04corporate world heavily rewards velocity. You
- 15:06know, don't just sit there analyzing ship something.
- 15:08Right, move fast and break things. But rushing
- 15:11to a solution without diagnosing the actual user
- 15:13context is a massive waste of capital. It's like
- 15:16a doctor prescribing heavy painkillers for a
- 15:18broken leg without ever actually setting the
- 15:20bone. You feel like you're doing something, but
- 15:23the core issue is untouched. That's a perfect
- 15:26analogy. Yeah. And this is why Wise realized
- 15:29they had to champion iterative learning. A truly
- 15:32data -driven organization doesn't just use data
- 15:35to justify launching a product. They use data
- 15:39to brutally evaluate their own failures. You
- 15:42have to create a psychological environment where
- 15:45a team can stand up and say, mailing the free
- 15:47cards was a total failure, and here's exactly
- 15:50why it failed based on the behavioral data. Yeah,
- 15:52that makes sense. That postmortem is often more
- 15:54valuable than a successful launch. But that realization
- 15:58completely shifts the timeline of when an analyst
- 16:00is supposed to do their job, right? If you want
- 16:03to avoid another free card fiasco, the analyst
- 16:06cannot just be the person you call after a launch
- 16:08to read the scoreboard. Absolutely. If you only
- 16:10bring the analyst in at the end to see if the
- 16:12metric went up or down, you've missed the entire
- 16:14game. The decisions that dictate success or failure
- 16:17were made months ago. So the operational solution
- 16:21they implemented was full lifecycle integration.
- 16:24Yes. They required analysts to be present throughout
- 16:27the entire product lifecycle. From day one, you
- 16:31know, the initial problem discovery phase where
- 16:33the team is just spitballing what the customer
- 16:35actually wants. Right. all the way through the
- 16:38technical development, the launch, and the post
- 16:40-launch iteration, the analyst is in the room
- 16:43shaping the strategy the whole time. And this
- 16:46full integration is what forces the evolution
- 16:48of the generalist profile. Okay, what do you
- 16:50mean by that? Well, when an analyst is involved
- 16:54from the very first brainstorming session, they
- 16:56can't just hide behind a SQL query. They have
- 16:59to actively merge their deep technical skills
- 17:02with highly nuanced soft skills I want to focus
- 17:05on that friction for a second because that is
- 17:07not an easy transition No, it's really hot. You
- 17:09are asking someone whose primary skill set is
- 17:12Mathematics and coding to suddenly become a master
- 17:15communicator They have to know how to gently
- 17:17tell a product manager that their thesis is flawed
- 17:21They have to know how to present complex data
- 17:25architectures to non -technical stakeholders
- 17:28without putting them to sleep. Right. They are
- 17:30basically acting as translators between the raw
- 17:33database and the human business strategy. This
- 17:37raises an important question about how we define
- 17:39modern data work in the first place. How so?
- 17:41For the last 20 years, we have treated data almost
- 17:44exclusively as an IT function. It was a back
- 17:47office, purely technical pursuit. Sure, the people
- 17:50in the basement running numbers. Exactly. But
- 17:53the leaders who are actually winning in the market
- 17:55today, like the architecture we're studying at
- 17:57Wise, they recognize that data is a behavioral
- 18:00discipline. A behavioral discipline. Yes. They
- 18:03empower their teams to act as behavioral translators.
- 18:06They aren't just reporting on what happened yesterday.
- 18:09They're predicting what will happen tomorrow.
- 18:11based on deep cross -functional insights. It
- 18:13fundamentally changes the identity of the role.
- 18:16You are no longer just a support ticket resolution
- 18:19machine. You are a co -creator of the product.
- 18:22And when you have 220 people operating with that
- 18:25level of strategic context, the compounding effect
- 18:28on a company's velocity and accuracy must be
- 18:31incredible. It creates a massive competitive
- 18:33edge. Companies that can quickly iterate and
- 18:36refine their strategies based on accurate behavioral
- 18:39diagnosis. They don't just survive market shifts,
- 18:42they dictate them. All right, we've covered a
- 18:44tremendous amount of ground today, looking at
- 18:46the mechanical and psychological realities of
- 18:48WISE's analytics transformation. It's a lot to
- 18:51take in. Let's synthesize the core blueprint
- 18:53here so we don't lose the forest for the trees.
- 18:55It boils down to a distinct sequence. OK. First,
- 18:59you have to establish the physical foundation.
- 19:01Build a rock -solid data infrastructure so your
- 19:04teams aren't drowning in broken pipelines. Crucial
- 19:06step one. Second, you structure for context,
- 19:09utilizing that embedded model with dual reporting
- 19:11lines to... balance objectivity with deep product
- 19:14knowledge. And then you activate that structure
- 19:16with the right human elements. You hire relentlessly
- 19:20for curiosity, testing for how people approach
- 19:23messy problems rather than just how fast they
- 19:26code. And finally, you democratize that knowledge.
- 19:29You push for widespread data literacy across
- 19:32every department, ensuring the entire restaurant
- 19:34knows how to taste the food as you put it. So
- 19:37what does this all mean for you listening right
- 19:40now? Yeah. The takeaway here isn't confined to
- 19:42data scientists or tech executives. This entire
- 19:45breakdown is a framework for anyone trying to
- 19:47make smarter, more impactful decisions in their
- 19:50own career. Absolutely. Before you launch your
- 19:52next project, before you suggest a massive new
- 19:55initiative to your boss, ask yourself, are you
- 19:58just treating a surface level symptom or have
- 20:01you done the tedious contextual work to diagnose
- 20:04the root problem? Right. Are you just looking
- 20:06at the numbers or are you aggressively seeking
- 20:09out the human behavior behind those numbers?
- 20:11It's about approaching every professional challenge
- 20:13with that same innate restless curiosity that
- 20:16drives the most successful analysts. Don't settle
- 20:19for the first answer. Dig into the friction.
- 20:22Which leaves us with a final slightly provocative
- 20:24thought to chew on. We live in an era currently
- 20:27obsessed with automation. The constant drumbeat
- 20:31in the business world right now is the desire
- 20:34to use AI to fully automate analytics, instantly
- 20:40generate the dashboards and spit out the strategy
- 20:42without any human intervention. Oh yeah, it's
- 20:44everywhere. But everything we just explored shows
- 20:47that building a genuinely data -driven culture
- 20:50relies heavily on uniquely human traits. It really
- 20:54does. It relies on psychological intuition, on
- 20:57cross -functional persuasion, and on the nuanced
- 20:59ability to realize that a customer doesn't want
- 21:02a free debit card because they are only sending
- 21:04digital remittances. It requires an understanding
- 21:07of human irrationality. Exactly. So if the current
- 21:10rush is to fully automate the analytics function,
- 21:13to strip away the human element entirely in the
- 21:15name of efficiency, will that actually make organizations
- 21:18less data -driven? That's a great question. By
- 21:21removing the behavioral translators, are we so
- 21:23eager to automate the sensory nerves that we
- 21:26are effectively lobotomizing the brain? It is
- 21:28something you definitely want to think about
- 21:30as you navigate the next few years of your career.
- 21:33Keep questioning the consensus, and until next
- 21:35time, keep digging deeper.