Author: Jim Riley Last updated: Sunday 23 September, 2012
Not all information is helpful to a business. Alternatively, it might be
detailed, but has been obtained for too much cost. What are the main features
of good quality information in a business?
The table below summarises the key characteristics of good quality information,
and suggests ways in which information can be improved if it is not quite
up to standard:
The information obtained and used
should be needed for decision-making. it doesn't matter
how interesting it is. Businesses are often criticised for producing
too much information simply because their information systems can "do
it". A good way of ensuring relevance is to closely define the objectives
of any information reports. Another way to improve relevance is to
produce information that focuses on "exceptions" - e.g. problems, high
or low values, where limits have been exceeded.
Information needs to be timely if
it is to be actioned. For example, the manager of a large retail business
needs daily information on how stores are performing, which products
are selling well (or not) so that immediate action can be taken. To
improve the speed with which information is produced, businesses usually
need to look at upgrading or replacing their information systems.
As far as possible, information should
be free from errors (e.g. the figures add up; data is allocated to
the correct categories). The users of information should be informed
whenever assumptions or estimates have been used. Accruate information
is usually a function of accurate data collection. If information needs
to be extremely accurate, then more time needs to be allocated for
it to be checked. However, businesses need to guard against trying
to produce "perfect" information - it is often more important for the
information to be up-to-date than perfect.
Meet the needs of the User
Users of information have different
needs. The managing director doesn't have time to trawl through thick
printouts of each week's production or sales listings - he or she wants
a summary of the key facts. The quality control supervisor will want
detailed information about quality testing results rather than a brief
one-line summary of how things are going. It is a good idea to encourage
users to help develop the style and format of information reporting
that they require.
Easy to use and understand
Information should be clearly presented
(e.g. use summaries, charts) and not too long. It also needs to be
communicated using an appropriate medium (e.g. email, printed report,
presentation. Businesses should also consider developing "templates"
which are used consistently throughout the organisation - so that users
get used to seeing information in a similar style.
Worth the cost
Often forgotten. Information costs
money. Data is costly to collect, analyse and report. Information takes
time to read and assimilate. All users should question whether the
information they recieve/have requested is worthwhile
Information should come from authoritative
sources. It is good practice to quote the source used - whether it
be internal or external sources. If estimates or assumptions have been
applied, these should be clearly stated and explained.