Field Notes

You already ownthe report

The system you already pay for has been recording the answers for years. Six questions on why nobody is reading them.

Every business we walk into is already sitting on the data it keeps saying it does not have. The system you bought years ago has been quietly recording margin by job, how fast inventory ages, how many quotes turn into orders, how often you ship complete. It captures all of it, every day. Almost none of it is ever looked at.

Nobody turned it on. The reports were never built. Half the fields are blank or filled with whatever was quickest. The setup is whatever the installer left behind. So when a real decision lands, a price, a hire, a vendor, there is no agreed number to settle it. The call goes to whoever argues hardest, whoever has the strongest gut, or whatever is on fire that morning.

That is the thing worth seeing clearly. You do not have a data problem. You have a decision problem, and the data to fix it is already in the building.

Six questions, and you can answer every one without pulling a report.

  1. When did anyone last run a report your system already produces, and what decision changed because of it?
  2. Which three numbers would tell you this week is going sideways, and who actually looks at them?
  3. When two people disagree about a price, a hire, or a vendor, what settles it?
  4. How many fields in your system are blank, or filled with whatever was quickest to type?
  5. Think of the last problem you put out. Has it come back under a different name?
  6. Who set your system up, and when did anyone last change how it is configured?

If the second question was the hard one, the rest of this piece is about that gap.

The data is already there

Walk through almost any established business and the raw material for good decisions is already sitting in a system somebody pays a monthly bill for. A mature distribution platform like Eclipse or Prophet 21 captures fill rate, margin by category, how long receivables sit, and how many quotes become orders, all of it, in the background, whether anyone reads it or not. The job costing and scheduling systems running in trades, in manufacturing, in field service do the same. The data is not missing. It is unread.

The gap shows up in small, almost funny ways. A company will own full matrix pricing inside its software, every product and every customer tier priced correctly, while the person at the counter still prices from memory and a laminated card taped under the desk. The system knows. Nobody asks it.

Fig. 1 / What reaches a decision
WHAT THE SYSTEM CAPTURES Margin by job Inventory aging Quote conversion Fill rate Job history OFF WHAT REACHES A DECISION Gut feel Loudest voice Whatever is on fire
The data is in the building. Almost none of it reaches a decision.

Nobody turned it on

The reason is rarely dramatic. The day the system went live, the priority was getting invoices out the door, not configuring reports nobody had asked for yet. So the reports never got built. Fields meant to carry a reason code or a category got left blank, or filled with misc, because misc was faster and the shipment was waiting. The configuration settled into whatever the installer left as the default, and then everyone got busy and never touched it again. None of this is negligence. It is a system that was installed and never actually turned on.

Without a number, the loudest voice wins

When there is no agreed number, decisions do not stop. They just get made another way. The price gets set by the person who feels strongest about it. The vendor gets kept because switching sounds like a headache. The hire gets made because the loudest department asked first. Every one of those could have been a number, and in most cases the number already exists.

The sharpest version we see is a new salesperson who cannot give a customer a price without calling the one person who keeps pricing in their head. The quote goes out slow. The deal gets lost. And the price was in the system the whole time.

We did not invent the preference for deciding this way. W. Edwards Deming, the statistician the modern quality movement and Six Sigma are built on, said it plainly. "In God we trust. All others must bring data."

Pricing is the sharpest example, and distribution is where it has been measured most closely. A one percent price increase lifts a distributor's EBITDA margin by about 22 percent, more than a one percent gain in volume or a one percent cut in cost.

22% lift in a distributor's EBITDA margin from a single one percent price increase, more than volume or cost can match, per McKinsey.

The cost of guessing runs the other way too. The average distributor loses money on roughly 40 percent of its invoice lines once the true cost to serve is counted, and almost none of them can see which 40 percent. The system holds every figure needed to find out. It is simply switched off.

Reacting fixes today, not the cause

Without numbers, a business also loses the ability to tell a symptom from a cause. A problem flares, everyone jumps, the fire goes out, and it feels like progress. Then the same problem comes back the next month wearing a slightly different face, because what got fixed was the flare, not the thing underneath it. Finding the real cause instead of the loudest symptom is a discipline we are trained in, and it runs on evidence. You cannot find the cause of a problem you only ever see in the rear view mirror, one crisis at a time. A number seen early is the whole difference between running the business and reacting to it.

Configuration, not capital

Here is the part owners brace for and do not need to. The fix is almost never new software, and it is almost never more capital. The system you already own can produce what you need. The work is configuration and a rhythm, in four moves.

  1. Agree the handful of numbers that actually run your business.
  2. Make the system produce them cleanly, on their own.
  3. Put a standing time on the calendar to look at them together.
  4. Decide from them, out loud, instead of from the loudest voice in the room.
Fig. 2 / The decision rhythm
1 Agree a few key numbers 2 Make the system produce them 3 Review on a set cadence 4 Decide from the numbers Each cycle sharpens the numbers
Four moves, on a set cadence. No new software required.

None of that requires buying anything new. There is a quieter payoff too. A decision made from a number can be handed to the next manager. A decision made from one person's gut leaves the day they do. Getting what matters out of one person's head and into something the business owns is the whole game, and it is the subject of a companion piece, What Migrates.

The numbers are already yours. Start using them.

If your business is running on gut feel while the answers sit unread in a system you already pay for, that is a fixable problem, and a fast one. It starts with a conversation about which handful of numbers should be driving your decisions and where they already live. No new software, no six figure project, just the data you own, finally switched on.