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@accenture provides some really scary statistics about metrics #pauto #manufacturing #mfg

Feb. 14, 2011

from one of Accenture's PR flacks:

Accenture’s research and day-to-day insights from working with clients in the current environment has highlighted the fact that companies cannot afford to continue to develop single-purpose systems – one that spews out the data required for reporting externally to regulatory bodies and another that provides the business intelligence critical for management in charting the organization’s strategic direction.
Such disjointed systems hinder a company’s ability to respond quickly in today’s increasingly fast-paced business environment because they can’t put their hands on the information they need quickly enough. Even worse, they may end up using the wrong metrics when they make business decisions. In addition to all these concerns that make it difficult for managers to see the forest through the trees, data warehousing is expensive.

Some alarming findings from Accenture research that discuss these very issues include:

70% of companies employ metrics that lack statistical validity.
Only 23% with balanced scorecards have any proven link between scorecards and shareholder value creation.
No more than 12% of companies can tie quality measures to positive stock returns.
60% of the $40 billion that companies spend annually on warehousing is used to cleanse data which only leaves employees unsure of how to use the data and consequently left without the insights required to make predictions about their future business.

Today, companies need to be especially nimble. So what should companies do to adapt to the continuously changing business environment?

Somehow I betcha Accenture has the answer....