There is much talk about correlation and causation, with many believing correlation is causation. They are not the same but can co-exist. Correlation is the relationship, while causation is the occurrence of an event.
In business, causation is necessary and critical in understanding and noting what is causing such factors:
· What could be affecting or not affecting sales
· Why revenue is changing over time or a period of time
· Why costs are impacting jobs and profitability
· Why and how employee productivity is being affected
…. And many more
The ability to focus on the causation and measurement of what is causing one event to occur, is necessary to make the necessary corrective changes or duplicate successes.
They will assist in
· Value Optimization in the company – building business value
· Solving critical business issues for better service and product delivery
· Risk and reward in adopting new technologies
· Data sharing and full understanding of information for the entire organization
· Observability all activities relating to the causation and effect
What you don’t measure you can’t lead. Look at what is affecting your organization and processes. Measuring it will no doubt assist in the changes you are looking to achieve.