Taiichi Ohno said, “Data is of course important in manufacturing, but I place the greatest emphasis on facts.” You can leave out the word “manufacturing,” and apply the concept to anything in your company or your life. Facts are more important than data.
When he talked about his preference for facts over data, he was urging people to go and see for themselves. Gathering facts comes from close observation of people, of objects, of spaces.
By contrast, spreadsheets, reports, and anecdotal accounts are not facts. They’re data. They’re two-dimensional representations of reality, which makes it easy to jump to conclusions.
Data tells you how often a machine breaks down on an assembly line. Facts—direct observation—show you that the machine is dirty, covered in oil, and hasn’t been cleaned and maintained in a long time.
Data tells you that customers applying for a mortgage forget to fill out certain parts of forms, forcing bank employees to follow up with customers and delaying the underwriting process. Facts—close examination of the form, and direct observation of an applicant while filling out the forms—reveal that one of the forms is poorly laid out and so cluttered that it’s easy to overlook a box.
Data tells you that the employee attrition rate is higher than industry average. Facts—spending a day in the office where people work—show that the office is kind of dark and unpleasant, that there’s no space for quiet reflection, and that the company you outsource facility services to doesn’t do a good job of cleaning the bathrooms.
Data without facts gives you an anemic, two-dimensional, black and white view of the world. Facts without data give you color and texture, but not the detailed insight you’ll need to solve the thorniest problems.
Facts will till you to clean and maintain the machines on the assembly line, but data will help you figure out how often you need to do it to ensure quality.
Facts will tell you that you need to improve the layout of the mortgage application forms, but data will tell you what the new error rate is, and by how much you’ve improved the materials.
You need both facts and data to get the full picture.