Management by Statistics
Many companies record vast amounts of data but do not use the information to manage effectively. Most managers rely too heavily on instinct or opinion to decide on courses of action. This is highly risky. It also demands that the manager has great personal skill.
A total system of management based on statistics that measure production, is a vital tool.
Every division, every department and every post is monitored by statistics. Management deals with consolidated statistics from across the company. Detailed statistics are mainly viewed only by those personnel immediately involved with the activities those statistics measure. The statistics are graphed and displayed on a large board. Managers can tell with a single glance at the graphs on the board, how each part of the organisation is functioning, whether is it increasing, declining or remaining level. Changes in graphs can be used to isolate causes of improvement or deterioration.
A system based on production statistics for every post in the organisation is the only completely fair and accurate method to identify and reward performance. It is free of all bias and opinion.