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To drive business impact effectively, finding short-term metrics that lead to long-term outcomes is crucial. Retention, though a common metric, can be challenging to influence in the short term. Choosing measurable short-term inputs that drive long-term results through experimentation is key. Keeping metrics simple and ensuring they are easily understood across the company helps in driving tangible outcomes.
Establishing a centralized data team rather than embedding analytics into units can be more effective. Analytics teams should have a seat at the decision-making table alongside engineering, product, and business functions. Building a team focused on driving business impact and not just data services allows for proactive problem-solving. A central model ensures consistent methodologies, aligns team goals, and enhances the scalability of solutions.
Creating a culture of extreme ownership and proactive problem-solving is essential for team success. Encouraging team members to go beyond their traditional roles and take ownership of outcomes fosters innovation. Empowering individuals to explore various aspects of the business, regardless of their job title, promotes holistic understanding and drives impactful initiatives. Prioritizing customer-centric approaches, such as participating in customer support activities and gaining insights through customer interactions, reinforces a culture of continuous improvement and empathy.
Metrics play a crucial role in decision-making processes, helping teams make informed choices quickly. At DoorDash, the use of Gross Order Value (GOV) and volume metrics has aided in translating various actions into tangible outcomes, such as improving the login flow to increase consumer orders or selling specific restaurants to predict GOV impact. By focusing on metrics like conversion rates and delivery times, teams can strategize better on where to allocate resources or efforts to achieve business goals effectively.
Simplifying complex composite metrics into more actionable and understandable components can enhance team performance. Rather than using convoluted composite scores for merchant health, breaking down essential factors like active hours, images, and menu accuracy can drive clearer objectives. By prioritizing simplicity and clarity in metrics, teams can align better towards common goals and see enhanced results, much like the approach taken at DoorDash to streamline focus on critical success factors over convoluted metrics.
Jessica Lachs is the global head of analytics and data science at DoorDash, where she’s built one of the largest and most respected data organizations in tech. In her more than 10 years at DoorDash, she has served as the first general manager, responsible for launching new markets; the head of business ops and analytics; and the VP of analytics and data science. Previously, Jessica founded GiftSimple, a social gifting startup, and started her career at Lehman Brothers as an investment banking analyst. In our conversation, she shares:
• How to structure and scale a high-impact analytics organization
• Centralized vs. decentralized data teams
• How to pick the right metric and aligning incentives
• Advice for data people on how and when to push back
• Lessons learned from building a global data team
• How to foster a culture of extreme ownership
• The role of AI in improving analytics team productivity
• Advice for aspiring data leaders without formal training
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Find the transcript at: https://www.lennysnewsletter.com/p/building-a-world-class-data-org-jessica-lachs
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Where to find Jessica Lachs:
• LinkedIn: https://www.linkedin.com/in/jessica-lachs/
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Where to find Lenny:
• Newsletter: https://www.lennysnewsletter.com
• X: https://twitter.com/lennysan
• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/
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In this episode, we cover:
(00:00) Jessica’s background
(04:59) Centralized vs. embedded analytics teams
(10:52) The benefits of a centralized analytics team
(15:10) Balancing proactive and reactive work
(20:45) Advice on how to push back effectively
(24:20) Hiring for curiosity and problem solving
(28:57) Coming from a non-traditional background
(34:40) The early days and culture at DoorDash
(40:39) Encouraging cross-functional roles
(44:39) Defining effective metrics
(46:30) Simplifying metrics for better outcomes
(55:28) Focusing on edge cases and fail states
(01:00:12) Managing a global data organization
(01:02:31) Leveraging AI for productivity
(01:05:25) Building diverse and skilled data teams
(01:08:40) Lightning round
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Referenced:
• How Netflix builds a culture of excellence | Elizabeth Stone (CTO): https://www.lennysnewsletter.com/p/how-netflix-builds-a-culture-of-excellence
• Riley Newman on LinkedIn: https://www.linkedin.com/in/rileynewman/
• Tony Xu on LinkedIn: https://www.linkedin.com/in/xutony/
• Imposter Syndrome: Why You May Feel Like a Fraud: https://www.verywellmind.com/imposter-syndrome-and-social-anxiety-disorder-4156469
• Stanley Tang on LinkedIn: https://www.linkedin.com/in/stanleytang/
• Andy Fang on LinkedIn: https://www.linkedin.com/in/fangsterr/
• Evan Moore on LinkedIn: https://www.linkedin.com/in/evanmoore/
• How WeDash became the flagship employee program for DoorDash: https://careers.doordash.com/blog/wedash-doordash-employee-program-how-does-it-work
• Leading with empathy | Keith Yandell (DoorDash, Uber): https://www.lennysnewsletter.com/p/leading-with-empathy-keith-yandell
• The Rose Code: https://www.amazon.com/Rose-Code-Novel-Kate-Quinn/dp/006305941X
• Libby app: https://libbyapp.com/
• The West Wing on Prime: https://www.amazon.com/West-Wing-Complete-First-Season/dp/B000KZPG04
• Alias on Prime: https://www.amazon.com/Alias-Season-1/dp/B00748O13S
• Joseon sunscreens: https://beautyofjoseon.com/
• Innisfree sunscreens: https://us.innisfree.com/
• John Steinbeck quote: https://www.brainyquote.com/quotes/john_steinbeck_103825
• Vanessa Roberts on LinkedIn: https://www.linkedin.com/in/vanessa-roberts-b8a509a/
• Tia Sherringham on LinkedIn: https://www.linkedin.com/in/tiasherringham/
• Elizabeth Jarvis-Shean on LinkedIn: https://www.linkedin.com/in/elizabeth-jarvis-shean-141a7966/
• Regina (Gina) Tarone on LinkedIn: https://www.linkedin.com/in/regina-tarone-a565a2/overlay/about-this-profile/
• My Journey (Part 1): I have a job that I would never be hired for: https://www.linkedin.com/posts/jessica-lachs_anniversary-datascience-finance-activity-7216912300056727553-mEv6/?utm_source=share&utm_medium=member_desktop
• Starting an Analytics Org From Scratch — Lessons From a Decade at DoorDash: https://review.firstround.com/starting-an-analytics-org-from-scratch-lessons-from-a-decade-at-doordash/
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Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.
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Lenny may be an investor in the companies discussed.
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