How do we conclude that a nagging, recurring blip has become serious enough to justify taking action? How do we assess the significance of anomalies—isolated occurrences and scattered, seemingly unrelated events? Can we objectively distinguish those factors that suggest an escalating level of risk? When do we know that we’ve achieved a desired goal?

Without data, you can’t even begin to know how bad—or good—things really are. Consequently, your organization lacks the information that justifies decisions and supports ensuing initiatives. It’s like trying to prepare food for a large dinner party without having a clue how many people will be attending. You could waste lots of time and money on a feast that will go uneaten, with the added disappointment of being the host of a nonevent instead of a smashing good time. In organizational parlance, that translates into scrap, ineffective utilization of resources, waste of time that could have been more productively spent, loss of money and failure to achieve the desired result.

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