Information vs. Knowledge

Summary

The transcript explores the distinction between information and knowledge, as viewed by W. Edwards Deming. Information is abundant but not necessarily predictive, such as anecdotes, focus group perceptions, historical data, experiments, and percentages. Knowledge, on the other hand, is predictive and based on theory, which can evolve. Deming emphasizes that while information can inform, it's knowledge that truly drives system management and improvement, advocating for the PDSA cycle as a method for continuous learning and enhancement.

Takeaways

• 📚 Information is distinct from knowledge; it includes words, definitions, and personal anecdotes but lacks predictive power.
• 🗣️ Personal anecdotes or 'antidotes' are a common form of information shared, but they are not reliable for decision-making due to inherent biases.
• 👥 Focus groups provide valuable perceptions but should not be the sole basis for implementing changes, as they represent subjective viewpoints.
• 📊 Data, while abundant, may not always be predictive of future outcomes, especially if it's historical and doesn't account for changing variables.
• 🔍 Experiments are crucial for scientific discovery but may not be directly applicable to complex systems where controlling variables is challenging.
• 📈 Benchmarking can offer insights into comparative performance but should be approached with caution as it may not reflect the unique dynamics of one's own system.
• 🔢 Percentages can be misleading if the underlying sample size is small, emphasizing the importance of scrutinizing the data presented.
• 🐓 Knowledge, as illustrated by Deming's rooster example, is predictive and based on theory that can evolve with new evidence.
• 🔁 Deming emphasized the PDSA cycle as a method for continuous improvement, suggesting that the most impactful improvements are often unknown and require ongoing theorization and refinement.
• 🚀 The key to managing a system effectively lies in applying knowledge, which is dynamic and predictive, rather than relying solely on static information.

Q & A

What is the primary difference between information and knowledge according to the transcript?

Information is data or facts provided or learned, such as words and definitions in a dictionary, while knowledge involves understanding and the ability to predict outcomes based on that understanding.

Why are anecdotes not considered reliable for decision-making in the transcript?

Anecdotes are personal experiences that can be biased and often only represent extremes, not providing a comprehensive view necessary for reliable decision-making.

What is the issue with using past performance data to predict future outcomes as mentioned in the transcript?

Past performance data may not accurately predict future outcomes due to the potential for many variables to change, which were not present in the past.

Why does the transcript warn against relying solely on focus groups for decision-making?

Focus groups provide perceptions and opinions, but they may not offer actionable insights or reflect the broader population's views, making them insufficient for system-wide decisions.

What is the significance of the rooster example used by Deming to explain knowledge?

The rooster example illustrates that knowledge is predictive and based on theory, which can be revised when new evidence contradicts it, highlighting the dynamic nature of knowledge.

How does Deming view benchmarking, and what is his concern with it?

Deming is critical of benchmarking because simply copying another organization's practices may not account for the unique differences between systems, and what works for one may not work for another.

What is the PDSA cycle, and how does it relate to the concept of knowledge in the transcript?

The PDSA cycle is a method for the continuous improvement of processes and products, standing for Plan-Do-Study-Act. It embodies the use of knowledge to predict and improve systems over time.

Why does the transcript emphasize caution when interpreting percentages in data?

The transcript warns that percentages can be misleading if the underlying sample size (denominator) is small, leading to potentially large percentage differences that do not reflect significant changes.

What does Deming suggest is the most important aspect of improving a system that is unknown and unknowable?

Deming suggests that the most important aspect of improving a system is the unknown and unknowable, emphasizing the need for theorizing and continuous improvement without complete information.

How does the transcript define the term 'information' in the context of a dictionary?

In the context of a dictionary, 'information' is defined as the words and definitions contained within it, which are factual but do not necessarily provide actionable insights or predict future outcomes.