Hard vs. Soft Data

Being former bankers, we certainly understand hard data. On the lending platform (as it used to be called), we spent a lot of time dealing with concrete, verifiable facts. These included financial information, system reviews, inventory counts, physical audits and/or appraisals. But, there was an even more important part of our analysis—the character of a company’s management, the outlook for their business, and the strength of their market position. These were not easily verified through hard data. To get a feel for these issues, we had to interview the management team and make phone calls to accountants, industry experts and customers.

Over the years, we have developed an increased respect for the value of that dialog. So, we were happy to read Mintzberg’s observations on the value of the “soft” data that comes from oral communication. He points out that a single call with an unhappy customer can tell you more than a mountain of sales reports. At Trek, we increasingly are letting go of our affinity for “hard” data. We still look at the reports, but we spend much more time digging into the reality behind it. Numbers are very easy to distort; they only “look backwards;” and worst of all, they are accepted at face value far too easily.

Mintzberg said it well, “Overall, while hard information may inform the intellect, it is largely soft information that generates wisdom.” We wish for you such wisdom.

-Mary Adams    2005