Tag Archives: management by statistics

“The Early Warning System” in Business, Part 2 by Arte Maren

<Continued from Part 1>

analyze-graph-up-statistic-arte-maren-the-natural-laws-of-management-admin-scale

The reverse is true as well. When a stat has been in the low range of the graph and then goes slightly up, it should be validated, even when only a slight rise:

“Also, it’s a bit mean to nag around about a rise. ‘But it isn’t much of a rise, you’re really in too low a range to have a rise count…’

“A rise is a rise. They at least got more. Now, better organizing, they will get more than that. Week by week it goes up.

“Similarly to discount a fall just because stats are high high high is folly. They could do week before last’s as they did it. So what was wrong that they couldn’t do it again? If they got exhausted at it week before last they need more help, obviously. Or better organization.”4

And it was not just the down stat not confronted! The problem with this particular graph occurred not only at the low point, but at the high point! What wasn’t confronted, what wasn’t handled, was not just the low week, but also in the high week!

Investigating Up Statistics

Something very effective was occurring through the upswing but nobody found out what it was! Then something changed and the stat crashed out the bottom. Why is it that when things aren’t going well everyone wants to know why? The lower it goes, the more agitated they can get.

But what happens when a stat goes up? If the statistic is rising, everyone relaxes. And what happens? The statistic drops because nobody found out why it was going up in the first place! And when it drops, what do they say? “Well, of course it dropped. It was up so high.” Which is, naturally, totally “reasonable.” In other words, it was expected to fall, and of course it fell.

An inspection and investigation of an up statistic should be at least as interesting, if not more so, than the down stat. After all, it’s positive! The time to investigate is on the upswing when it’s going well. That’s a lot more fun, and it’s a vital action. It’s hardly ever done to the degree that it should be. When things are going well, you want to find out why. And when they’re not going well, you’re going to find out why also.

Statistics rise or fall because of positive or negative changes. Statistics are a matter of changes. Some kind of positive change in some operating procedure was introduced near the point that started things going on the climb. If a stat drops, something changed. Whatever positive factor was put in was taken out or altered.

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“When statistics change radically for better or for worse look for the last major alteration or broad general action just before it and it is usually the reason.

“Example: Letter out statistic falls and falls. In investigating, look for the last major change in that area and if possible cancel it and the statistic will then rise.”

Mr. Hubbard further explains, in the same issue, how he arrived at this management concept:

“I learned this while researching the life force of plants. Every time I saw a research bed of plants worsen, I queried what routine had been varied and found invariably some big change had been made that wasn’t usual.

“It is change that changes things for better or for worse. That’s the simplicity of the natural law.

“If you want to hold a constant condition, don’t change anything.

“If you are trying to improve something make changes cautiously and keep a record of what is changed. Then you watch statistics and if they decline you hastily wipe out the last change. And if they improve you reinforce the change that began it.”5

Of equal importance to changes are comparisons. Comparison is as vital in stats as it is in evaluating anything.

“Statistics must be studied and judged alongside the other related statistics.

“A rising income graph can even be shown sometimes as an actual threat to an organization if the delivery stats are down and stay down. It means the organization is selling and not delivering and may very well crash shortly.”6

-Arte Maren

Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale
and his NEW 4-CD The Natural Laws of Management Audiobook Seminar

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4 Hubbard, “Reading Statistics,” Policy Letter of 5 May 1971, Organization Executive Course.
5 Hubbard, “Statistics, Actions To Take, Statistic Changes,” Policy Letter of 1 February 1966, Organization Executive Course.
6 Hubbard, “Statistical Judgment,” Policy Letter of 9 February 1970, Organization Executive Course.

Chapter 21 Excerpt: Fixed Conditions vs. Expansion

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Some individuals or companies consistently have a flat graph— that is to say, stats that go level across the graph. There are lots of “reasons” usually given as to why it’s flat, but they are merely explanations as to why the statistic is down. This applies to any statistic that is down, on a downtrend, or even flat. On Earth, any activity either expands or contracts—it never stays the same.

“It is an empirical (observed and proven by observation) fact that nothing remains exactly the same forever. This condition is foreign to this universe. Things grow or they lessen. They cannot apparently maintain the same equilibrium or stability.

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“Thus things either expand or they contract. They do not remain level in this universe. Further when something seeks to remain level and unchanged it contracts.

“Thus we have three actions and only three. First is expansion, second is the effort to remain level or unchanged and third is contraction or lessening.”

Given these three actions, the choice is clear: “To survive, then, one must expand as the only safe condition of operation.”1

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What do you do with a flat graph? Make it go up! “I’m not going to accept this anymore.” A good first step.

“Organizations are not well run by the old school tie2, what professor one knew in the Ivy League University or who is shacked up with whom. Organizations run by other considerations than stats hurt the individual staff members. Organizations are well run when they are run by fairly and realistically designed stats for every staff member, division and the organization.”3

Remember, you are keeping stats for expansion. That is the name of the game.

 

-Arte Maren

Professional Speaker, Writer and Business Consultant
Author of  The Natural Laws of Management: The Admin Scale

 

 1 Hubbard, “Expansion, Theory Of Policy,” Policy Letter of 4 December 1966, Organization Executive Course.
2 Old school tie: “The expression old school tie has essentially the same meaning as the business association interpretation of old boy network. This expression derives from school ties indicating that the wearer is an old boy of a particular school.” Wikipedia.com.
3 Hubbard, “Statistics, Management By,” Policy Letter of 5 February 1970, Organization Executive Course. Fixed Conditions vs. Expansion

 

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“Stat Justification” from Arte Maren’s 8-Part Video Series “Management by Statistics” (Part 8 of 8)

Stat Justification” is the final segment from the 8-part video series “Management by Statistics” by veteran business management consultant Arte Maren.


-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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“Statistics – A Breakthrough Technology” with Arte Maren (Management by Statistics, Part 7 of 8)

Veteran consultant Arte Maren discusses the use of statistics and graphs and how this is a breakthrough technology that will help you grow your business or organization. What are the “Condition Formulas”?

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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“Statistics – Statistical Management” with Arte Maren (Management by Statistics, Part 6 of 8)

This is video #6 in an 8-part series titled “Management by Statistics” delivered by veteran consultant Arte Maren. He discusses the need for statistics as an unbiased measurement and how to compare statistics to grow your business or organization.

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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“Statistics – Managing by Statistics” with Arte Maren (Management by Statistics, Part 5 of 8)

Veteran consultant Arte Maren discusses where your biggest income losses come from and how often you should track statistics to grow your business or organization.

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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“Statistics – The Staff Meeting” with Arte Maren (Management by Statistics, Part 4 of 8)

Part 4 in the “Management by Statistics” video series for business owners and executives by veteran business consultant Arte Maren.
 

 
-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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“Statistics – Weekly Review of Production” with Arte Maren (Management by Statistics, Part 3 of 8)

 

Part 3 in the “Management by Statistics” video series for business owners and executives by veteran business consultant Arte Maren.

 

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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“Statistics – When Do You End Your Week?” with Arte Maren (Management by Statistics, Part 2 of 8)

Part 2 in the “Management by Statistics” video series for business owners and executives by veteran business consultant Arte Maren.

 

 

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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“Statistics – An Introduction” with Arte Maren (Management by Statistics, Part 1 of 8)

Veteran Business Consultant Arte Maren presents his introduction to “Management by Statistics” for business owners and executives.

 

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

 

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Management by Statistics – Chapter 19 of The Natural Laws of Management: The Admin Scale

statistic-graph-measure-production-arte-maren-natural-laws-of-management-admin-scaleBeing unreasonable and having no options increases production. And production is regulated and monitored by statistics, the next level up on the Admin Scale.

Stats are best represented on graphs. A graph helps keep you unreasonable. The graph does not tell you that “it snowed” and therefore “things were difficult that day”. It doesn’t give you any “reasons”. It simply shows production or non-production. Products are a physical reality, and if you wish to manage with reality, you must have real information. Management survives to the degree that it has sufficient data to determine what is working so as to reinforce it–and what is not functioning well, so as to change that action or system. And the first type of information needed is not lengthy reports, but correct, condensed data: a stat.

A stat is:

The only sound measure of any production or any job or any activity.1

 

1 “Statistic” (definition), Hubbard, Modern Management Technology Defined

 

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