Managing With Numbers

By:
Prof. Samuel Lartey
sammylaatey@yahoo.com
In our businesses, we are bombarded with huge amounts of information, much of it are
quantitative. We have to know how to process this information. From company set up costs to
reading the balance sheet. Basic numeracy provide a means of understanding and interpreting
information. On the contrary many people ignore or shy away from figures, both as users of
statistical techniques and as consumers of statistical information, because they lack the
confidence in their own mathematical skills or numeracy.
It must be emphasized that, most of the arithmetic is simple and easily mastered, and
confidence is often all that is required. The word statistics is used to describe a characteristic of
a set of data, numerical facts and a range of averages. It is also used for the branch of
mathematics which describes the body of knowledge and techniques involved in the analysis
of data about the real world.

Statistics, numeracy and management science is often incorporated into business to enable us
to organise, process and interpret information. It is easy to use when some simple techniques
are mastered and aid rational decision making. There is no gain saying that some people have
a 'blind spot' for quantitative or mathematical ideas and techniques. With such managers
statistics need to be used and read intelligently, as they mislead, and they can mislead
unintentionally.
It is all too easy to collect information for the sake of it. More often than not people collect too
much information, not too little. Therefore consider carefully the purpose for which the
numerical data will be used. Mostly numerical data will be collected for making quick and easy
comparisms, problem solving, or to make a decision. This awareness should be stated at the
outset. Numbers also provides quick pictorial information. One can quickly identify trends. For
example one can identify within the total sales figures, which products are growing and which
are declining.
Business numerical data can come from published (or secondary) sources or from operational
(primary) sources such as sales or production figures, or can be acquired for some specific
purpose such as market research or customer satisfaction surveys. Although there are many
mechanisms for acquiring the data, the key consideration is the quality of the data, not the
amount. Managers may want to use a sample rather than the whole 'population'; the size of
sample you need to yield reliable results depends largely on whether you want to break it down
into sub-samples for analysis, and how far you want to break it down.
Statistical terminologies or arithmetical processes can be applied to describe the business
data. Some of the popular terminologies may include: percentages or proportions; averages or
measures of central location; standard deviation or other measures to describe the dispersion.
These simple statistics are easy to calculate and represent most of what people need to know
for many data sets. Spreadsheets or other computer software will calculate these figures for
you on demand.
In presenting numerically, a wide variety of means of illustrating data in pictures is available,
which aid understanding and communication. Examples include bar charts, pie charts,
histograms, and many forms of graph. Graphs are particularly useful when showing a quantity
that varies over time. Most people will not need to know how to use these, but it can be useful
to know what they are and what they can do.
Once the data is organised and illustrated, and statistics are calculated, it is possible to analyse
the results, make deductions or otherwise interpret the results. Occasionally, it will mean
further data collection or analysis, as one question may lead to others.
When managing with numbers, dont be put off by thinking that everyone else knows more
than you do - they probably don't! Note that simplicity is divinity so do away with
overcomplicating things. The vast majority of real applications need only the most basic of
numerical techniques.