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AntManaging Uncertainty to Improve Decision Making: Statistical Thinking for Managers
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What is Statistical Thinking?

`Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write.'
Herbert G. Wells



Statistical thinking is the philosophy of learning and action based on the following fundamental principles:
  1. all work occurs in a system of interconnected processes - a process being a chain of activities that turns inputs into outputs;
  2. variation, which gives rise to uncertainty, exists in all processes; and
  3. understanding and reducing variation are keys to success.
All three principles work together to create the power of statistical thinking.

The definition highlights several key components: process thinking; understanding and managing uncertainty; and using data whenever possible to guide actions and improve decision-making.

Statistical thinking is a philosophy - a mind-set. It is an overall approach to improvement and therefore more broadly applicable than statistical methods. It is a way of thinking, behaving, working, taking action and interacting with others.

In addition, the process focus of statistical thinking provides the context and the relevancy for broader and more effective use of statistical methods.


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Last updated on November 10, 2008.
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