Using Statistics and Statistical Thinking to Improve Organisational Performance

Abstract

Summary A systematic approach to measuring organisational performance is fundamental to the pursuit of business excellence. As such, the area of organisational performance measurement, and its use of data and analysis to inform business decisions, affords statisticians a potentially high value‐adding opportunity. To be effective in this area, statisticians need to appreciate the differing requirements for statistical information in various management zones of an enterprise. This paper describes a strategy that seeks to link measurement to all facets of organisational performance, particularly to desired business outcomes, and also to mesh measurement with process improvement in a natural way. The use of statistics and statistical thinking is then discussed in this context, with particular focus on the opportunity for statisticians to have a key role at the top decision‐making level of the organisation. We argue that the role requires skills in both advanced technical statistical modelling and analysis, and in statistical thinking. It also requires a preparedness to form an appreciation of the business and management imperatives faced by the leaders of an enterprise, and a willingness to work from this basis.

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