Post on 21-Dec-2015
Effective StatisticsEffective StatisticsEffective StatisticsEffective Statistics
One perspective from One perspective from a high tech businessa high tech business
One perspective from One perspective from a high tech businessa high tech business
Effective StatisticsEffective StatisticsEffective StatisticsEffective Statistics
An effective system requiresAn effective system requiresthe ability to ensurethe ability to ensure Application objectives Application objectives are clear are clear Data sources are Data sources are understood & appropriate understood & appropriate
An effective system requiresAn effective system requiresthe ability to ensurethe ability to ensure Application objectives Application objectives are clear are clear Data sources are Data sources are understood & appropriate understood & appropriate
Appropriate methods are Appropriate methods are applied & their limitations applied & their limitations are knownare known
Results are actionableResults are actionable Actions are taken (and count)Actions are taken (and count) Lessons are learned and Lessons are learned and
results improvedresults improved
Appropriate methods are Appropriate methods are applied & their limitations applied & their limitations are knownare known
Results are actionableResults are actionable Actions are taken (and count)Actions are taken (and count) Lessons are learned and Lessons are learned and
results improvedresults improved
People in business “are findingPeople in business “are findingthat while they have more that while they have more numbers than ever numbers than ever before, they still before, they still do not understand do not understand what they mean.”what they mean.”
From “Understanding From “Understanding Variation” Variation” by Donald Wheelerby Donald WheelerSPC PressSPC Press
People in business “are findingPeople in business “are findingthat while they have more that while they have more numbers than ever numbers than ever before, they still before, they still do not understand do not understand what they mean.”what they mean.”
From “Understanding From “Understanding Variation” Variation” by Donald Wheelerby Donald WheelerSPC PressSPC Press
Effective StatisticsEffective StatisticsEffective StatisticsEffective Statistics
Effective Statistics-one Effective Statistics-one perspectiveperspectiveEffective Statistics-one Effective Statistics-one perspectiveperspective
Statistics are effective, to theStatistics are effective, to theextent they support achievingextent they support achievingbusiness objectives morebusiness objectives moreeconomically.economically.
Statistics are effective, to theStatistics are effective, to theextent they support achievingextent they support achievingbusiness objectives morebusiness objectives moreeconomically.economically.
The application The application objective is clear objective is clear The data The data source is source is understood understood & appropriate & appropriate
The application The application objective is clear objective is clear The data The data source is source is understood understood & appropriate & appropriate
What Characteristics Make What Characteristics Make Statistics Effective?Statistics Effective?What Characteristics Make What Characteristics Make Statistics Effective?Statistics Effective?
The appropriate methods are The appropriate methods are applied & their limitations are applied & their limitations are knownknown
The results are actionableThe results are actionable Actions make a differenceActions make a difference
The appropriate methods are The appropriate methods are applied & their limitations are applied & their limitations are knownknown
The results are actionableThe results are actionable Actions make a differenceActions make a difference
Effective StatisticsEffective StatisticsEffective StatisticsEffective Statistics
Result from an effective systemResult from an effective systemResult from an effective systemResult from an effective system
UnderstandUnderstandthethe
Objective Objective
UnderstandUnderstandthethe
Objective Objective
PerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysisCollect Collect
DataData
Collect Collect
DataData
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
Some Important SkillsSome Important SkillsSome Important SkillsSome Important SkillsUnderstandUnderstand
the the ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
Collect Collect
DataData
Collect Collect
DataDataPerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
Ability to understandAbility to understandthe true problemthe true problem People skills to co-discover itPeople skills to co-discover it Technical skills to diagnose itTechnical skills to diagnose it
Ability to understandAbility to understandthe true problemthe true problem People skills to co-discover itPeople skills to co-discover it Technical skills to diagnose itTechnical skills to diagnose it
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
““Often the consultant’s most Often the consultant’s most valuable contribution to a client valuable contribution to a client is the redefinition of the is the redefinition of the problem…. The presenting problem…. The presenting problem and the real problem and the real (or underlying) problem are (or underlying) problem are usually different”usually different”
From “Flawless Consulting”From “Flawless Consulting”by Peter Blockby Peter BlockUniversity Associates, Inc. 1981University Associates, Inc. 1981
““Often the consultant’s most Often the consultant’s most valuable contribution to a client valuable contribution to a client is the redefinition of the is the redefinition of the problem…. The presenting problem…. The presenting problem and the real problem and the real (or underlying) problem are (or underlying) problem are usually different”usually different”
From “Flawless Consulting”From “Flawless Consulting”by Peter Blockby Peter BlockUniversity Associates, Inc. 1981University Associates, Inc. 1981
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
Some Important SkillsSome Important Skills
Collect Collect
DataData
Collect Collect
DataData
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
PerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
Ability to assess the data Ability to assess the data source integrity and limitationssource integrity and limitations What answers can What answers can be determined be determined What answers cannotWhat answers cannot
Ability to assess the data Ability to assess the data source integrity and limitationssource integrity and limitations What answers can What answers can be determined be determined What answers cannotWhat answers cannot
Collect Collect
DataData
Collect Collect
DataData
The Government are (sic) The Government are (sic) extremely fond of amassing great extremely fond of amassing great quantities of statistics. These are quantities of statistics. These are raised to the nth degree, the cube raised to the nth degree, the cube roots are extracted and the results roots are extracted and the results are aggregated into elaborate and are aggregated into elaborate and impressive displays. impressive displays.
The Government are (sic) The Government are (sic) extremely fond of amassing great extremely fond of amassing great quantities of statistics. These are quantities of statistics. These are raised to the nth degree, the cube raised to the nth degree, the cube roots are extracted and the results roots are extracted and the results are aggregated into elaborate and are aggregated into elaborate and impressive displays. impressive displays.
Collect Collect
DataData
Collect Collect
DataData
What must be kept in mind, What must be kept in mind, however, is that in every case, however, is that in every case, the figures are first put down the figures are first put down by a village watchman, and he by a village watchman, and he puts down anything he damn puts down anything he damn well pleases.”well pleases.”
Sir Joseph StampSir Joseph StampHer Majesty’s Collector of InlandHer Majesty’s Collector of InlandRevenueRevenue
What must be kept in mind, What must be kept in mind, however, is that in every case, however, is that in every case, the figures are first put down the figures are first put down by a village watchman, and he by a village watchman, and he puts down anything he damn puts down anything he damn well pleases.”well pleases.”
Sir Joseph StampSir Joseph StampHer Majesty’s Collector of InlandHer Majesty’s Collector of InlandRevenueRevenue
Collect Collect
DataData
Collect Collect
DataData
Some Important SkillsSome Important SkillsSome Important SkillsSome Important Skills
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
Collect Collect
DataData
Collect Collect
DataDataPerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
Ability to apply the right Ability to apply the right techniquestechniques Set an appropriate approachSet an appropriate approach Perform the analysis correctlyPerform the analysis correctly
Ability to apply the right Ability to apply the right techniquestechniques Set an appropriate approachSet an appropriate approach Perform the analysis correctlyPerform the analysis correctly
PerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
Some Important SkillsSome Important SkillsSome Important SkillsSome Important Skills
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
Collect Collect
DataData
Collect Collect
DataDataPerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
Present an effective conclusionPresent an effective conclusion Readily graspedReadily grasped CompleteComplete
what results meanwhat results mean what they don’twhat they don’t
ActionableActionable
Present an effective conclusionPresent an effective conclusion Readily graspedReadily grasped CompleteComplete
what results meanwhat results mean what they don’twhat they don’t
ActionableActionable
ReportReport
ResultsResults
ReportReport
ResultsResults
““Our life is frittered away Our life is frittered away by detail…by detail…
Simplify, simplify.”Simplify, simplify.”Henry David ThoreauHenry David Thoreau
““Our life is frittered away Our life is frittered away by detail…by detail…
Simplify, simplify.”Simplify, simplify.”Henry David ThoreauHenry David Thoreau
ReportReport
ResultsResults
ReportReport
ResultsResults
Effective StatisticsEffective StatisticsEffective StatisticsEffective Statistics
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
Collect Collect
DataData
Collect Collect
DataDataPerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
““The fundamental reason The fundamental reason we measure anything in we measure anything in an organization is to change an organization is to change behavior.behavior.
““The fundamental reason The fundamental reason we measure anything in we measure anything in an organization is to change an organization is to change behavior.behavior.
Take Take
ActionAction
Take Take
ActionAction
““If there are any measures If there are any measures currently in your organization currently in your organization that can vary dramatically that can vary dramatically without causing anyone to without causing anyone to change their behavior, change their behavior, the measure is a waste and the measure is a waste and should be eliminated”should be eliminated”
From”Fast Cycle Time” From”Fast Cycle Time” By Cristopher MeyerBy Cristopher MeyerThe Free Press, 1993The Free Press, 1993
““If there are any measures If there are any measures currently in your organization currently in your organization that can vary dramatically that can vary dramatically without causing anyone to without causing anyone to change their behavior, change their behavior, the measure is a waste and the measure is a waste and should be eliminated”should be eliminated”
From”Fast Cycle Time” From”Fast Cycle Time” By Cristopher MeyerBy Cristopher MeyerThe Free Press, 1993The Free Press, 1993
Effective StatisticsEffective StatisticsEffective StatisticsEffective Statistics
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
Collect Collect
DataData
Collect Collect
DataDataPerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
““The biggest obstacle to learn The biggest obstacle to learn anything is believing you anything is believing you already know it.”already know it.”
From: The Only Things that MattersFrom: The Only Things that MattersBy Karl AlbrechtBy Karl Albrecht
Harper Collins Publishing, 1992Harper Collins Publishing, 1992
““The biggest obstacle to learn The biggest obstacle to learn anything is believing you anything is believing you already know it.”already know it.”
From: The Only Things that MattersFrom: The Only Things that MattersBy Karl AlbrechtBy Karl Albrecht
Harper Collins Publishing, 1992Harper Collins Publishing, 1992
Learn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
Effective Statistics - a systemEffective Statistics - a systemEffective Statistics - a systemEffective Statistics - a system
UnderstandUnderstandthe the
ObjectiveObjective
UnderstandUnderstandthe the
ObjectiveObjective
Collect Collect
DataData
Collect Collect
DataDataPerformPerform
AnalysisAnalysis
PerformPerform
AnalysisAnalysis
ReportReport
ResultsResults
ReportReport
ResultsResults
Take Take
ActionAction
Take Take
ActionActionLearn fromLearn from
ResultsResults
Learn fromLearn from
ResultsResults
Some Applications at HPSome Applications at HPSome Applications at HPSome Applications at HP Obtaining useful customer Obtaining useful customer
informationinformation Optimizing distribution Optimizing distribution
channelschannels ForecastingForecasting InventoriesInventories
Obtaining useful customer Obtaining useful customer informationinformation
Optimizing distribution Optimizing distribution channelschannels
ForecastingForecasting InventoriesInventories
New product researchNew product research Evaluating new productsEvaluating new products Manufacturing process Manufacturing process
controlcontrol Solving problemsSolving problems Managing processesManaging processes
New product researchNew product research Evaluating new productsEvaluating new products Manufacturing process Manufacturing process
controlcontrol Solving problemsSolving problems Managing processesManaging processes