Julian jenkins from data measures

From Data and Measures to Meaningful Decisions

Designing Useful Information for Senior Management & Boards

Dr Julian Jenkins2nd RoadSydney, Australia

Commercial in Confidence 20092

A story about user experience

400 sides of text

66 separate documents

2 hour

meeting

9 hours of

reading

Sense of clarity

40-60%


A story about user experience

400 sides of text

66 separate documents

2 hour

meeting

9 hours of

reading

Sense of clarity

40-60%

Oct 2008


The growing scope of corporate information

Corporate social responsibility

Balanced scorecards

Triple bottom line

Financial statements

Growing range of topics

Multiple locations

Growing scale of

operations

Multiple industries

Multiple geographies, cultures

4

Internal compliance processes

Growing scope of

regulation

External reportingGlobal financial

crisis


Management by analysis

“From 1817 onwards … a generation in the USA learned how to learn in a historically new way.”

Sylvanus Thayer West Point military academy 1817-1833

• Relentless numerical measurement of performance

• Written reports as basis for management

• Focus on planning and logistics


The dominant knowledge paradigm

The analytical method is really good at solving a certain category of problems ...

... with stable, measurable parameters

... with linear processes of cause and effect

... with predictable outcomes and repeatable, “correct” solutions


From a 19C to a 21C business context

Machine Web

Hierarchical power Interpersonal influence

Efficiency of production Quality of experience

Manufacturing Knowledge and services


Two types of problem in the world

be other than they are“ ”Things cannot

be other than they are“ ”Things can

Physical world

situations with fixed, quantifiable parameters

situations with multiple qualitative options

Human environments

Aristotle



Horst Rittel

Tame Problems

• clearly definable problems• “correct” answers• repeatable solutions

Mystery Algorithm



Wicked Problems

• multiple, interconnected problems• no “right” answers• unrepeatable solutions

Irreducible fluidity

10

Horst Rittel


Two types of thinking toolkits

Scientific Analysis Rhetoric

• Objective data

• Empirical measurement and observation

• Rational deduction

• Reduction to parts

• Subjective experience

• Qualitative judgments

• Argument and persuasion

• Cohering into a whole


“Analytical” decision-making

Senior Managers & Boards

Data Measures

Collated Information

Rational Decisions

• Automated reports• Dashboards• Data warehouses

• KPIs• Data integrity• Alignment of measures

A data-driven, IT-heavy process


“Rhetorical” decision-making

A user-centred, meaning-making process




Conceptual Framework

A high level mental map or gestalt



Strategic Knowledge


Focused answers to the right level of questions



Turning operational data into useful strategic insights

“Alchemists of knowledge”

Data Measures


MiddleManagers

Strategic insights

Clear arguments Senior

Managers & Boards



Strategic Knowledge

JudgementConceptual Framework

• Vision and values• Experience• Empathy



Strategic Knowledge

Judgement


• Cognitive processes• Social processes

Processes



Strategic Knowledge

Judgement


Processes

Good Decisions

Shared Meaning

Coherent Story

Focused Action


Unlocking the power of information design


Data Measures


Decisions

Content

‘The visual display of quantitative information’


1. Creating clear conceptual frameworks

PlanningProgram Design & Alignment

Strategic Conversation(AcdB Conversation)

Planning Conversations(12 Month Program of Work)

Portfolio Conversations(Budget, Performance Targets)

Strategic Review(Annually)

Program Reports(3-6 Monthly Review)

Performance Reports (1-2 monthly)

ReportingReflection & Evaluation

Setting Direction

Organising Action

Doing

Business planning and reporting cycle


2. Lifting the level of strategic knowledge

Is Product XYZ Operating Effectively?

Level 1 Report

SUMMARY OF KEY ISSUES

Appropriate revenue?

Green Amber Red

Cost to operate? 1

Community confidence in the system?

1

3

Are the right players in the system?

3

Clients understand their obligations?

2

Clients meet their obligations?

3

1Risks identified and acted upon?

1Internal capability?

2

Effective Design? 2

Sustainable Design?

1

OUTCOMES?

OPERATING FEATURES?

ADMINISTRATIVE DESIGN FEATURES?

Data Confidence

Rating

(1 = Good)

Role of intermediaries?

• Revenue falling since 1999, but signs it may be levelling out• Most significant decline in Micro segment (44%)• High level of debt ($1bn) compared with total revenue ($3.46bn)

• ATO cost is high, because XYZ requires full product support for a relatively small revenue return• Significant concern in community regarding cost, because of technical nature of XYZ, & administrative burden of compliance• Generally good feedback from community• Systems deficiencies pose threat to confidence. These may be highlighted by the forthcoming introduction of the portal.

• No systemic method for determining appropriate participation• 35% decline in Micro registrations since 1999; however low levels of revenue involved

• Good understanding of basic lodgement and payment obligations• Inherent complexity presents challenges for understanding at lower end of market• High level of compliance amongst Large, government & NFP clients; some concerns at Micro end of market

• Good risk processes in place• Resources not always available to respond to specific risks

• Low revenue base has resulted in low investment• Significant risks in terms of systems deficiencies and compliance staff skilling• Tax agents play important role because of inherent complexity• Good relationships established with professional groups

• Fragmented nature of administration dilutes efficiency and inhibits improvement• Systems deficiencies make some tasks unnecessarily labour intensive and reduce administrative efficiency• XYZ administrative system is old and was designed for a different taxation environment• Processing systems are outdated, not easily adaptable, and are unlikely to be sustainable into the future

• Falling revenue, though probably because of people moving out of the XYZ regime• Relatively costly and complex for ATO and community to administer• Systems deficiencies pose some significant risks to administrability, reputation• Relatively low skills base for XYZ across ATO – expertise vested in small number of staff

Is Product XYZ Operating Effectively?

Level 1 Report

SUMMARY OF KEY ISSUES

Appropriate revenue?

Green Amber Red

Cost to operate? 1

Community confidence in the system?

1

3

Are the right players in the system?

3

Clients understand their obligations?

2

Clients meet their obligations?

3

1Risks identified and acted upon?

1Internal capability?

2

Effective Design? 2

Sustainable Design?

1

OUTCOMES?

OPERATING FEATURES?

ADMINISTRATIVE DESIGN FEATURES?

Data Confidence

Rating

(1 = Good)

Role of intermediaries?

• Revenue falling since 1999, but signs it may be levelling out• Most significant decline in Micro segment (44%)• High level of debt ($1bn) compared with total revenue ($3.46bn)

• ATO cost is high, because XYZ requires full product support for a relatively small revenue return• Significant concern in community regarding cost, because of technical nature of XYZ, & administrative burden of compliance• Generally good feedback from community• Systems deficiencies pose threat to confidence. These may be highlighted by the forthcoming introduction of the portal.

• No systemic method for determining appropriate participation• 35% decline in Micro registrations since 1999; however low levels of revenue involved

• Good understanding of basic lodgement and payment obligations• Inherent complexity presents challenges for understanding at lower end of market• High level of compliance amongst Large, government & NFP clients; some concerns at Micro end of market

• Good risk processes in place• Resources not always available to respond to specific risks

• Low revenue base has resulted in low investment• Significant risks in terms of systems deficiencies and compliance staff skilling• Tax agents play important role because of inherent complexity• Good relationships established with professional groups

• Fragmented nature of administration dilutes efficiency and inhibits improvement• Systems deficiencies make some tasks unnecessarily labour intensive and reduce administrative efficiency• XYZ administrative system is old and was designed for a different taxation environment• Processing systems are outdated, not easily adaptable, and are unlikely to be sustainable into the future

• Falling revenue, though probably because of people moving out of the XYZ regime• Relatively costly and complex for ATO and community to administer• Systems deficiencies pose some significant risks to administrability, reputation• Relatively low skills base for XYZ across ATO – expertise vested in small number of staff


3. Building human empathy


4. Designing the social process


5. Communicating strategy coherently


6. Creating a meaningful story


Unleashing the power of information design

Wicked problems

Strategic Knowledge

Judgement


Processes

Good Decisions

Shared Meaning

Coherent Story

Focused Action

Meaning-shapersInformation designers


Reference material

Tony Golsby-Smith “Pursuing the Art of Strategic Conversation: An Investigation into the Role of the Liberal Arts of Rhetoric and Poetry in the Business World”, (PhD dissertation, University of Western Sydney, 2001).

Keith Hoskin, Richard Macve & John Stone

“Accounting and strategy: towards understanding the historical genesis of modern business and military strategy, in Bhimani, A. (ed), Contemporary Issues in Management Accounting, (OUP, 2006).

Julian Jenkins “Information Design for Strategic Thinking: Health of the System Reports”, Design Issues, 24:1 (2008), pp. 68-77.

Horst Rittel & M. Webber

“Dilemmas in a General Theory of Planning”, Policy Sciences 4 (1973), pp. 155-169.

Julian jenkins from data measures

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