Preparing for 2007-

A Strategy for Change Based on Previous Experiences

Steve ValeOffice for National Statistics, UK

Contents

• Background

• SIC(92) Lessons Learned

• SIC(2003) Lessons Learned

• Strategy for 2007

Background

• Major revision of international classifications of economic activity for 2007

• Discontinuities for statistical outputs• Substantial changes for statistical business registers

• Transition needs to be carefully managed to maintain quality

Standard Industrial Classification

• Hierarchical classification based on5-digit codes

• UK version of NACE• Consistent at higher levels with ISIC• Last major revision - 1992• Minor revisions late 1990s and 2003

SIC(92) Implementation: Approach

• Clerical re-coding from recent register proving survey questionnaires

• Specific register proving exercise for SIC(92) and new business register

• Automatic imputation of codes for remaining small enterprises

• Old and new classifications both live on the register for one year

SIC(92) Implementation: Lessons learned

• Consistency problems when more than one classification is “live”

• Quality (consistency) of coding could be improved using coding software

• Burden on businesses of extra register proving survey

• Avoid simultaneous major changes so that individual impacts can be analysed

SIC (2003) Implementation: Approach

• Stored business descriptions for local units re-coded clerically

• Automatic coder updated as soon as sufficient metadata available

• Clerical and automatic coding results compared

• Forward and backward correlation tables constructed for local units with no stored description

• Local unit codes fed up to enterprise level

SIC(2003) Implementation: Lessons learned

• Planning time for data suppliers too short – inconsistent implementation

• Store business descriptions for automatic re-coding

• Improve questionnaires to capture better quality business descriptions

• Relevance of new codes needs testing• Re-coding can impact on register quality and bias

… continued

• Register customers need early warning of changes

• Register users need re-training, especially coding staff

• Total cost > 250.000 Euro (part funded by Eurostat)

Strategy for 2007

• Increased use of stored business activity descriptions and automatic coding software

• Correlation tables for smaller units• Limited clerical resource for quality assurance and impact assessment

• Evaluate success afterwards

Key Requirements

• Automatic coding tool• Time – 18 months needed between final codes and implementation to:–Update coding tool–Allow suppliers time to adapt–Re-code–Create and test correlation tables–Analyse impact

• Resources – staff and money

Further information

• www.statistics.gov.uk/idbr

• steve.vale@ons.gov.uk

Any Questions?