What is needed? –relevance

When is it required? – timeliness

How is it required? – accuracy

Information is only relevant, and therefore needed, if it is used to make a decision. Since very few decisions are made as a result of receiving management accounts, sales forecasts, etc., should they be thrown into the waste paper basket?

Information is only required when decisions have to be made. Since directors of a company make long term decisions, should staff have to work overtime to produce the information required for them “yesterday”?

Information needs only to be sufficiently accurate to make a decision.  So no more quoting of forecast sales for year 3 as “£926,369” i.e. to 0.0001%

When deciding which information you need regularly:

	Determine what your objectives are
	Decide what decisions you need to make to achieve those objectives
	Decide what information is necessary to support those decisions
	Determine when the decisions have to be made
	Decide on the accuracy necessary to make the decision

When asking for information – tell the provider what decision you wish to make or, if it is confidential, be clear in your own mind what it is.

When asked to provide information, ask what decision is to be made, based on it  (assuming such a question won’t result in termination of employment).

Since decisions cannot change the past, only the future, information should primarily be concerned with forecasting

You need to communicate your objectives to your information providers, so that they  can help you achieve them.