A Note on Data and Information Management (Key Ideas in Management)

Data are representation of facts that come from some type of measurement process.

Measurement is the act of quantifying the performance dimensions of products, services, processes and
other business activities.

Parameters and Indicators refer to the numerical information that results from measurement.

Visual inspection, tools and instruments, counting activity and opinion survey could be some ways of
measurements.

The term Indicator is often used for measurements that are not a direct or exclusive measure of
performance e.g. Customer of Employee Satisfaction Index which is arrived at using a set of parameters
on factors affecting satisfaction of these important stakeholders of an organization.

The aim of measurement and analysis is to guide an organization toward the achievement of key
business performance and strategic objectives and to anticipate and respond to rapid or unexpected
internal or external changes.

Information is Data in context of a business or organization. Information is derived from the analysis of
Data. Good information allows managers to make decisions on the basis of facts, not opinions.

Bill Gates notes that –“middle managers need as much business data as top managers but often have no
way to get it”. He also says that –“face-to-face meetings devoted to status updates are a system of poor
information flow, because that type of information could be handled much more effectively using
electronic transfer of data and e-mail”.

Dealing with Data and Information should be addressed from a Process perspective and Total Quality
Concepts can be applied to the generation, analysis, communication and use of organization –wide Data
and Information. Hence it is also at all level of Processes up to task level.

Discuss: DMAIC = Define, Measure, Analyze, Improve and Control dimensions of typical 6 Sigma projects.
 RESULTS

1. If you do not measure results, you can’t tell success from failure.
2. If you can’t see success, you can’t reward it—and if you can’t reward success, you are probably
rewarding failure.
3. If you can’t recognize failure, you can’t correct it.

Performance (level), Comparison, Breadth and Trend – analysis of Results in Financial as well as Non-
Financial Areas of an organization provide us the information about not only the achievements over the
years but also about the possibility of future success and hence likely sustenance.

“Boeing Airlift & Tanker (A&T) Programs” defines performance measurements in five key categories
that support company goals:

1. Customer Satisfaction
2. Programme Performance
3. Workforce Effectiveness
4. Operational and Process Performance
5. Financial Results

This organization uses five criteria to select data:

 Importance to customer
 Effective in measuring performance
 Effective in forecasting results
 Actionable and
 Easily collected with integrity

“Clarke American” structures its performance measurements along two dimensions:

-How they are used – to either “Change the Business” of “Run the Business” – and whether they are
predictive (leading) or diagnostics (lagging). “Change the Business” measures are those most critical to
the achievement of strategic objectives and evaluate organizational performance such as “total order
cycle time” and “Implemented Ideas”. “Run the Business” measures are those used for daily operations
and include measures of accuracy, responsiveness and timeliness for deliveries.
“Corning Telecommunications Products Division (TPD)” uses a Competitive Analysis Process to gather
publicly available data to analyze competitor’s intentions and capabilities, including manufacturing
capacity, cost and cost of incremental capacity and determines product capability and quality through
direct evaluation of competitors’ products. Teams at TPD brainstorm and research new measurements
consult with experts and test the measurements for three to six months before full implementation.

Organizations continually refine information sources and their uses within the organization. E.g. – During
quarterly “Measurement Summits” at “ADAC Laboratories”, representatives from all departments
review the types of data collected according to three criteria:

1. Whether the data supported key business drivers

Organizations review their performance using sound analytical methods to assess organizational
success, competitive performance and progress toward achieving strategic objectives and they use the
results to identify priorities for improvement and daily design making.

“Fuji-Xerox”, a Japanese subsidiary of “Xerox”, uses a variety of statistical techniques such as regression
analysis of variance to develop mathematical models relating such factors as Copy Quality, Machine
malfunctions and Maintenance time to Customer Satisfaction Results.

“Caterpillar Financial Services Corporation” uses correlation analyses for its scoring and credit decision
models to predict profitability and segmentation analysis to compare satisfaction of Origination
Processes versus Termination Processes, success in meeting varying requirements of differing industries
or describing employee salary ranges by job category.

At “Pal’s Sudden Service”, an automated data collection, integration, and analysis system, SysDine,
generates store-level and company-wide reports on sales, customer count, product mix, ideal food and
material cost and turnover rates and also has an automated correlation routine available for analyzing
key data to support organizational performance reviews and strategic planning. As a result, they are able
to identify how changes in one performance area affect all other areas, make accurate performance
projections, and understand how to optimize their management system.
Excellent Organizations involve everyone in measurement activities and ensure that performance
information is widely visible throughout the organization.

The Hospital Information System (HIS) at “Baptist Hospital” is used to gather, collect and integrate data
from clinical systems, employees, patients, financial systems, decision support systems and physicians.
HIS is accessed through mobile terminals, through the Medical Information Data Access System for
Physician and through kiosks located through out the organization.

The “RITZ-CARLTON” disseminates its SQI (Service Quality Indicator) statistics to the workforce on a
daily basis.

“Solar Turbines” shares comparative data in a leadership and all-employee meetings showing projected
comparisons with each of its “top tier measures”.

“Branch-Smith Printing” puts its performance analysis in to charts for review in preparation for their
Strategic Planning Process. Results from each management review are posted for all employees who use
this for information, evaluation and improvement processes. Department specific analyses are
communicated by posting “Resource Performance Charts” in all functional areas. The charts include the
department of group goals, performance levels, and the relationship of goals to division strategies.

These excellent organizations ensure that Data and Information are accurate, reliable, timely, secure
and confidential as appropriate.

At CATFSC, all company data are covered under Caterpillar Information Protection and Records
retention Guidelines. Protection guidelines define company information as public or in one of the three
levels of confidentiality and outlines procedures for distributing information both internally and
externally. In health-care industry (U.S.) organizations have to comply with Health Insurance Portability
and Accountability Act (HIPPA).
Ensuring that Hardware and Software systems are reliable and user-friendly and that Data and
Information are accessible to all who need it.

At MOTOROLA, special interest groups or technical advisory boards and working groups have been
formed across the corporation to involve users in establishing and updating desktop H/W and S/W
Standards to reduce costs, ensure reliability, and improve ease of use.

Xerox, maintains one of the most extensive computer networks in the world, linking hundreds of sites
globally to provide information 24 Hours a day, seven days a week.

These organizations manage organizational knowledge and identify and share best practices.

“Clarke American” has an automated information collection and distribution system that provides a
central repository for information for partners, customers and associates.

CATFSC manages organizational knowledge through several mechanisms including email; an intranet,
shared network drives; public folders which share knowledge by subject, department and other
customized formats; Caterpillar’s Knowledge Network, which is a web-based tool that provides for
collaboration at various levels and a searchable database called e-tracker, which captures learning from
than 1000 six sigma projects.