Are All Directions Equal?The appointment was in 25 minutes. I was driving in Phoenix several years ago, looking for the store where I was to meet with the owners. Yet even though I was close, the more I drove the more confused I became. Fifteen minutes ticked away as I turned here and backtracked there, getting me no closer to my target. Admitting to myself that I was lost was really tough but then I did the toughest thing known to man: I asked for directions.

Pulling to the side of the road, I rolled down my window and asked a man strolling on the sidewalk if he knew how to get to my destination. He assured me that he did. With some hand waving and drawing on his palm, he laid out the specific instructions. Jotting the notes down on a pad I keep in the car, I thanked him and was off to my appointment.

After nearing the end of the instructed route, I realized that the directions were in no way taking me to where I wanted to go. The guy who mapped the way for me had either been mistaken, vindictive or just wanted to help and was too embarrassed to say that he couldn’t. In any scenario, I was now more lost than ever, ten minutes more behind schedule, frantic, mad and disgusted all at once.

The reason I relate this story to you is because it illustrates the importance of accuracy in the information that you use to guide your direction on any path. Just as I was more lost when I acted on information that was supposed to be accurate but was not, a retailer can miss opportunities and can find himself with more problems than when he started seeking guidance. Not every OTB budget number is based on the same input variables nor does each one use the same mathematics, statistics and modeling to generate sales forecasts for a classification. Even numbers that are generated with the technology differ greatly in their ability to provide the right information when the analysis and personal input differ.

Just because you “pull over” to get directions does not mean you will be closer to your goal if the information is not accurate. Before you base your investment and your future on data and analysis, make sure you know how it is generated and the accuracy embedded in the numbers.

Your future depends on three aspects of planning. First is accurate input in a classification format that reads customer demand. Second is an objective process that creates an accurate forecast that understands the importance of balance and flow in your inventory; that balance and flow determines your cash flow. The third aspect is the actions and follow-through to turn the plan into results. If any one of these critical processes is unsuccessful, as a result, the final goal will not be reached.

Epilogue: I did get to the appointment – 25 minutes late. The owner had already gone and I missed my goal.