Transcript

Information needs to be of high quality to be useful, especially when there is uncertainty, risk and opportunity.

The quality of information is a measure of the value that the information provides to you as a user of that information. It is often perceived as subjective and can vary among users and circumstances.

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The characteristics of good quality information for making informed decisions are interrelated. They can generally be defined as an acronym ACCURATE:

• Accurate – Information should be fair and free from bias and errors.
• Complete – Information should be telling the whole truth, complete with facts and figures.
• Cost-beneficial – Information should be analysed for its benefits against the cost and effort of obtaining it.
• User-targeted – Information should be communicated in the style, format, detail and complexity which address the needs of users of the information.
• Relevant – Information should be communicated to the right person who has some control over decisions expected to come out from acquiring the information.
• Authoritative – Information should come from reliable sources.
• Timely – Information should be communicated in time so that the receiver of the information has enough time to decide appropriate actions based on the information received. What is timely information will depend on situation to situation. In this era of high technological advances, out-of-date information can keep an organisation from achieving their goals or from surviving in a competitive arena.
• Easy to Use – Information should be understandable to the users.

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The Stacey Matrix was designed to help understand the factors that contribute to the complexity and provides insights into the best management actions to address the different degrees of complexity.

The basis of the matrix is two dimensions of agreement and certainty.

A slightly modified version of the matrix can be utilised to categorise problems and decision-making approaches in one of four domains.

The degree of certainty (the horizontal axis) relates to the quality of information available for making informed decisions. Good quality information leads to rational, analytical planning.

The degree of agreement (the vertical X-axis) relates to how much people agree with the outcomes to be achieved as a result of applying the best information available.

The matrix has now four domains.

Simple Domain – When you exactly know what to achieve and you have good quality information to decide, the problem appears in the simple domain. There are well-established knowns and a clear relationship between cause and effect. Best practices work in this domain, which suits the command and control leadership style.

Complicated Domain – When there is some doubt as to what to achieve and the quality of information is not so good, there will be a few unknowns. You need to analyse the situation. The good thing is that there is more predictability than unpredictability. In this domain, supervisory leadership works best with good practices.

Complex Domain – When there is disagreement as to what to achieve and the quality of information is average to poor, there will be more unknowns than knowns. There is more unpredictability than predictability. Leaders need to probe, sense and act. They need to create boundaries within which people can call to action. Good or best practices may not work in this domain since there are a lot of unknowns. What helps in this domain are emergent practices. The leadership which suits this domain is the “servant-leadership”, where the leader serves his/her people.

Chaotic Domain – This domain is characterised by a lot of uncertainty, unpredictability and disagreement. There is no clarity on the outcomes, state and information. There is no direct relationship between cause and effect. None of the good, best or emergent practices will work in this domain. The leadership has to act first, sense and then respond. It needs to bring some order to the chaos first and then look for solutions. This domain tends to suit entrepreneurs.

Therefore, to be successful, you need to consider the limitations and uncertainties associated with what you must achieve and the quality of information that is available to you.

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