Translating Data into Action, Part 1
Introduction
While decision-makers have access to more data than ever before, the problem of turning that information into an actionable plan that drives performance still remains. Data alone will not help managers make sense of where production is lacking, nor will it motivate the organization to change its behavior. Translating operational data into action is a three-step process centered on closing the measurement and feedback loop for managers and their teams.
These three steps must be done together as an end-to-end process, and must be supported with training, increased visibility, and performance-based incentives if lasting value is to come out of the effort
- Data Collection alone will do little to help managers make sense of their operation. Few organizations are lacking sufficient data; in fact, most are drowning in too much.
- Analysis alone won’t encourage people to change their behaviors. Without meaningful presentation, even the best insights will go unheeded if people don’t know about or understand them.
- Presentation and Delivery alone will simply make the data more available, but won’t help managers filter through the raw data and get at insights buried within.
As you plan your measurement initiative, the hard part will be getting people to think about how they want to use the new information. Four questions can help focus your efforts:
- What questions do I have about the operation, and what metrics will help answer them?
- Any form of metrics will do, as long as they are actionable
- Don’t wait for perfect data; make assumptions, state the assumptions and put the data in use
- What data do I currently have available, and how accessible is it?
- Any source system will do, as long as it provides fair representation
- Rarely will you find that you don’t have enough to get started
- You don’t need more data…you need better data
- How can I collect data with minimal disruption to the operation?
- Bias will be introduced if people are forced to modify behavior to support metrics
- Start with “loose coupling” (e.g., extracts, queries) vs. building real-time links
- What information do I want to deliver?
- What data and analysis will have the most impact on performance?
- Triangulate using multiple views of the same activity
Here we present a framework for translating operational data into a set of actionable metrics that can be used by managers to measure and improve their organizations’ performance.
- Part 2: The Measurement Process: Data Collection, Analysis, Presentation
- Part 3: Taking Action
(Please continue to next posting, "Translating Data into Action, Part 2")