Management, by its very nature, is not set up for quantitative analysis as it involves people and people are hard to measure in objective terms. Qualitative research goes just so far in helping measure performance and without a system of measurement it is difficult to put improvement goals in place. Whether you're a manager in the public or private sector, quantitative data helps managers of all organizational types make more informed decisions.
Clues
Managers are constantly looking for clues on the best direction to take on a project or initiative. The most common issue for management is resource allocation. Managers use several several methods and techniques to help pull useful data out of business information. These techniques are based in statistics and financial modeling. Statistics is the science of finding trends in numbers and modeling helps find ways to project these trends into the future. The ability to forecast demand helps managers prioritize resources.
Statistics and Modeling
Statistics and modeling demand rigorous analysis. Spreadsheet packages like Excel are useful. They can help with descriptive statistics and finding index numbers, probabilities, decision analysis, statistical distributions, hypothesis testing, correlation, regression, forecasting, modeling, linear programming, simulation, scenario analysis. These techniques can help managers make the most informed decision.
Performance Management
Performance management, or quality management, is another way to analyze trends in data. To make improvements the process must be measured. Assigning a metric or a "key performance indicator" to a process is the most challenging aspect of this technique. For instance, if you want to increase sales a metric might be "number of new customers per month." Set a goal and communicate (report) this goal to sales staff on a regular basis. This technique helps management to focus employees.
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