How much LMI do we need?

There’s an easy answer to this question . . .

. . . Less than you think.

You need information that you are going to use to shape your provision.

You don’t need great tomes of data that you will never use.

Why do we gather LMI anyway?
The main reason any business gathers and then uses LMI is to help it to spot business opportunities. That’s why you want to know about the size of markets and about trends in markets.

You use the information you gather to help you to decide where you are likely to be able to build your business.

You use it to help you to be clear about where you should be investing and growing your business.

LMI will help you to be more demand-led if you use your information in the right way.

What LMI do we really need?
You need to know about national developments – employment/unemployment rates - that sort of thing. You need to know what is happening in the industries and sectors that you are targeting.

You need to know if there is anything unusual about the part of the country in which you live. Is your area unusual in some way?

You also need LMI to help you to keep up to date with what is happening in your marketplace locally. This is an aspect of LMI that lots of providers ignore. Local information is best gathered by your own organisation. You can collect it with minimal effort. It's valuable because it helps you to shape what you do.

Every time you think about collecting and using LMI your first question should be: how are we going to use this?

If you don’t know the answer, ask another question. Do we really need to know about this?