you cannot measure it
or express it in numbers, your knowledge is
of a meagre unsatisfactory kind. Lord Kelvin
The analysis issue assesses what the element consists of and how well it is
defined and understood. For
example; has the organization defined and understood the major threats to its
existence, is there a clear definition of the reporting structure or is it aware
of the information required by government?
Are the management aware of all the compliance activities, or all the incidental
activities? Managers will not have first-hand knowledge
of these things,
they should know where to look.
Measurement is important: Each element should
be capable of being defined and measured. For
example, an organization needs to understand how its 'reputation' is defined by the
marketplace, and have some way of monitoring and measuring it.
Car maker Mercedes-Benz, tracks reputation by the proportion of customers
buying another Mercedes, while its competitor Jaguar places great emphasis on
its position in the JD Power customer satisfaction survey for car owners.
A pharmaceutical company’s reputation may depend on the number of new
drugs it discovers and a school's reputation on students’ examination successes.
Key instances: The
most important instances of specific elements should be identified.
For example - who the key customers and suppliers are, which
skills the organization is dependent on, which processes are critical or where
the major threats are coming from.
KLM analyzed their customer and
sales data bases to discover that many passengers flew economy to the US but
business class back, to cope better with jet lag.
This analysis and understanding of their information enabled them to create a new
category of fare and win new customers. Analyzing
information is increasingly being used to
keep ahead of the competition.
information about elements: Knowledge
about specific elements is often carried in the heads of staff and this
represents a risk for the organization since they could leave and take this
knowledge with them. For
the management to exercise proper control, it should ensure that each element is
formally defined and recorded
This may be difficult for some elements that straddle departments or are
difficult to define,
as the risks the organization faces, workers attitude to
their jobs, the various rules and customs, etc.