We use cookies, including third-party cookies from Google to serve personalized ads through AdSense, to operate this site and understand how it is used. By continuing to browse, you accept this use. See our Privacy Policy and Terms of Use for details, including how to opt out of personalized advertising.
Accept
SmartData CollectiveSmartData Collective
  • Analytics
    AnalyticsShow More
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers -- AI-generated illustration
    What Kind of Problem-Solving Distinguishes Data Analysts From Software Engineers
    7 Min Read
    chatgpt image jul 21, 2026, 04 34 30 pm
    4 Core Benefits of Predictive Maintenance after Vibration Analysis
    10 Min Read
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results -- AI-generated illustration
    How Does Data Mining Boost Customer Satisfaction in Logistics? Harnessing Analytics for Results
    11 Min Read
    chatgpt image jul 13, 2026, 04 23 45 pm
    How Data Analytics Helps Companies Improve User Engagement
    19 Min Read
    chatgpt image jul 13, 2026, 03 59 46 pm
    How Data Analytics Improves Multi-Location Search Strategies
    10 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-25 SmartData Collective. All Rights Reserved.
Reading: Freakonomics and Your Data
Share
Notification
Font ResizerAa
SmartData CollectiveSmartData Collective
Font ResizerAa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > IT > Cloud Computing > Freakonomics and Your Data
AnalyticsCloud ComputingData MiningData QualityKnowledge ManagementStatistics

Freakonomics and Your Data

knowwareman
knowwareman
6 Min Read
Freakonomics and Your Data
Photo by Leeloo The First on Pexels (https://www.pexels.com/photo/smartphone-laptop-and-paper-printout-on-flat-surface-7887810/)
SHARE

In the August, 2005 issue of BusinessWeek, Michael Hopkins explored the best seller Freakonomics and it’s authors’ strategy for using data to explore and explain the world. They wrote: “Morality…represents the way that people would like the world to work–whereas economics represents how it actually does work.”

I find this is true in Lean Six Sigma as well. It’s amazing how many company managers want to use data to prove their pet theory or justify their actions. Only after a long struggle do they begin to learn how to use data as a guide to clear thinking and action. I’ve always liked the quote: “He/She uses statistics like a drunk uses a light post, for support not illumination.” In Lean Six Sigma this holds true far too often.

The most common pet theory: I need more staff.
Reality: You don’t need more people, you just need to reduce the defects, delay, and rework that’s consuming 25-40% of you staff’s time.

The Data Strategy
In Hopkins article, he identifies the key strategies used by Steven Levitt and his coauthor, Steven Lubner. They are:

More Read

big data transfer online
Comparative Analysis of Two Top Big Data Transfer Services
Seven Steps to Rejuvenate Your Marketing Database
3 Effortless Tactics to Be a Data Science Success in Business
How MapR’s M7 Platform Improves NoSQL and Hadoop
Current Events Are A Goldmine of Data: Here’s How to Get Ahead
1. Use your data
Companies generate lots of data about orders, sales, purchases, payments, and so on. The bigger the company, the more data they have and the less likely they are to use it. Figure out what data is useful and use it. Figure out what data isn’t useful and stop collecting it.
2. Ask quirky questions
If you’re focused on why things go wrong, ask: “What are we doing right? Who is already doing this right?” If you focus on why things are going right, focus on what’s wrong and start with the “worst first.”
In Freakonomics, Levit stopped asking why crime rates have fallen since 1990. He started asking what kind of individuals are most likely to commit crimes and then asked “Why are they disappearing from the population?” His answer to that question is startling, but instructive of his method: “Let the data lead you.”
3. Don’t mistake correlation for causality
America spends 2.5 times more on health care than any other country. Yet Americans aren’t more healthy than other countries. Affluent women have a higher incidence of breast cancer than poor women. Does wealth cause breast cancer? Does health care cause illness?
4. Question Conventional Wisdom
You can’t get new insights from old ways of thinking.
5. Respect the Complexity of Incentives
Humans will always find ways to beat the system. Rely on it.

The moral of the story: “Make data your friend,” says Hopkins. I’d say let it be your guide.

I also like Levitt’s thought that “You don’t need to know a lot of math. I’m horrible at math.” That’s why I created the QI Macros SPC software for Excel. The macros do all of the scary math; you just need to know how to interpret the resulting graphs.

Most Common Mistakes
Mistake #1: Starting with a team of people to gather the data, rather than letting the data tell you who should be on the team.

Mistake #2: Measuring activity, not results. Companies count the number of Six Sigma Black Belts trained, the number of teams started, but fail to measure the results achieved by these teams.

Mistake #3: Trying to use data to prove your hunch or pet theory, rather than letting the data lead you to the true answer.

Here’s my point:
Use data for illumination, not support. Let it be your guide. The answers will surprise you and accelerate your journey to Lean Six Sigma.

Gathering Data to Increase Patient Throughput and Reduce Length of Stay

To accelerate patient throughput, you have to be able to measure and improve the key steps in length of stay (LOS). To simplify and automate much of this data collection and analysis, I’m working on a series of time tracking tools in Microsoft Excel. And I’ve integrated them with the QI Macros control chart templates to give you automatic graphs of LOS performance.

If you would like to be contacted when our Patient Throughput Time Tracking System becomes available later this month just send an email to support@qimacros.com and mention the Patient Throughput or LOS Time Tracking system. 

TAGGED:datadata miningsix sigmastatistics
Share This Article
Facebook Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

Flat editorial illustration: The article connects verified lease abstraction at signing to accurate property charges and faster m
AI Lease Abstraction and Month-End Close Speed-Up Checklist
Artificial Intelligence Exclusive
Flat editorial illustration: The article explains that file-system choice determines whether Windows, macOS, and Linux can read o
Understanding File System Compatibility Across Windows, macOS, and Linux
Cloud Computing Exclusive
Flat editorial illustration: The article connects duplicate and decayed CRM records to distorted attribution; a SaaS-editorial sc
Your Attribution Model Is Fine. Your CRM Is Lying to It
Business Intelligence Exclusive
Technical architecture diagram and decision framework for wikipedia editing services and ai training data: why llms still treat wikipedia as a source of truth
Wikipedia Editing Services and AI Training Data: Why LLMs Still Treat Wikipedia as a Source of Truth
Artificial Intelligence Exclusive

Stay Connected

1.2KFollowersLike
33.7KFollowersFollow
222FollowersPin

You Might also Like

How Big Data Helped Russia Become A Leader In Car Sharing
Big Data

How Big Data Helped Russia Become A Leader In Car Sharing

7 Min Read
How Data Analytics Is Changing The Insurance Industry
AnalyticsBig DataExclusiveWeb Analytics

How Data Analytics Is Changing The Insurance Industry

5 Min Read
PAW: The High ROI of Data Mining for Innovative Organizations
Data MiningPredictive Analytics

PAW: The High ROI of Data Mining for Innovative Organizations

9 Min Read
Why Learn R? It's the language of Statistics
Uncategorized

Why Learn R? It’s the language of Statistics

3 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive
ai chatbot
How AI Website Chatbots Improve Customer Support and Lead Generation
Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US
© 2008-26 SmartData Collective. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?