Chapter 6: Managing Data, Information, Knowledge and Action

Summary
Past definitions of organizational excellence basically consisted of effectively managing people and tasks. Today, we must consider another dimension: managing data, information and knowledge. This is one of today's greatest challenges facing managers: how to convert the bountiful quantity of available data to useful information that provides knowledge, leading to action.

The chapter develops the Data-Information-Knowledge-Action model, highlighting the skills managers need to acquire, along with typical organizational problems at each stage. Also discussed are typical loops that describe what happens in many organizations. The I-A loop, for example, is indicative of a "program of the month" cycle where managers read about the latest management fad, seize the opportunity to implement the program, only to repeat the cycle again and again. Employees become frustrated and cynical because the organization continues to respond to the latest initiative without learning from the previous one. Information (the fad) leads to action (implementation of the program), not knowledge of how the fad fits in to the big picture.

The chapter presents various suggestions about how to better manage the D-I-K-A relationships. For example, the data-information relationship can be enhanced by increasing the efficiency of data and information transmission by providing "product embedded information" and "just in time information". The information-knowledge relationship can be improved by considering the source's credibility, realizing that who creates the data and sends the information provides important insight into its reliability, validity and utility. Finally, the knowledge-action relationship can be enhanced by creating strategic knowledge-sharing communities, where individual members come together to discuss major issues and focus on broad goals.

Outline

1. The D-I-K-A Model
   1. Data = representations of reality
   2. Information = data which provides relevant clues or news
   3. Knowledge = the framework or schema for organizing the relationship between pieces of information
   4. Action = the deeds or decisions made based on knowledge
      
      
2. Variations of the Model
   1. The D-I-K loop
   2. The K-A loop
   3. The I-A loop
      
      
3. Managing the Data-Information Relationship
   1. Recognize the inherent flaws of all data and information
   2. Determine what employees really need to kno
   3. Analyze both quantitative and qualitative dat
   4. Harness the power of Product Embedded Information and Just-in-Time Information
   5. Use imagery to personalize information and summarize complex data sets
   6. If possible, reduce the number of links in the communication chain
      
      
4. Managing the Information-Knowledge Relationship
   1. Recognize the difference between information and knowledge
   2. Evaluate the credibility of the evidence before theorizing
   3. Organize the same information in different ways to extract the underlying meaning
   4. Ask a lot of questions about what you do not know
   5. Structure informal networks
   6. Create and continually test models and theories
      
      
5. Managing the Knowledge-Action Relationship
   1. Create strategic knowledge-sharing communities
   2. Restructure organizational reports to focus attention on actionable issues
   3. Speed up the transformation process, even at the expense of accuracy
      
      
6. Conclusion