Answer:
1. Collect only useful data
Before collecting data, take a step back and ask the fundamental question: Can I turn this data into information or knowledge to help me make decisions that will improve services and reduce costs? When you understand the answer to that question, you will be in a better position to establish what data to collect and how to turn it into information you need to make decisions.
2. Use analytical tools
Use tools that help you analyze the information and data you have. Export the data from your system if necessary and load it into Excel. Use Excel’s pivot table tool to analyze data and convert it into information. You can use other software or enterprise systems that are designed for data analysis as well. The key thing is to step beyond lists and printouts and start analyzing the data in a way that’s meaningful to your responsibilities.
3. Get accurate data
Of course, you need good data in the first place. Make sure you have what you need and it is reasonably accurate, but consider how you will use it and how much of a difference accurate data will make in your decision-making.
Accuracy or detail are also something you need to manage so you don’t end up overwhelmed with detail, or spend too much effort getting detail or accuracy that simply doesn’t matter in the end. For instance, if you are tracking costs as part of a process in order to make management decisions, does your tracking method have to tie into the financial system and match to the penny? Does it have to be a live link with your own system, or can you download the needed information from the financial system daily or weekly?
4. Convert data to information
Information is when you take the data you have and analyze it or manipulate it by combining it with other data, trending it over time, assessing or analyzing the outliers that need to be dealt with, and, most important, applying your own experience and knowledge to transform that data into something you can use to make a decision with.
