How to Measure Anything
A guide to measuring intangible values in business, enhancing decision-making and reducing uncertainty.
Summary of 5 Key Points
Key Points
- The nature and importance of measurement
- Approaches to measuring intangible values
- Reducing uncertainty through measurement
- The role of intuition in measurement
- Practical applications in different business areas
key point 1 of 5
The nature and importance of measurement
Measurement, in its essence, refers to the process of ascertaining the amount, size or degree of something utilizing established benchmarks or standards. It serves as a critical tool for quantifying and understanding the world around us. This quantification lets us make informed decisions in various aspects of our lives, as it provides a solid foundation for reasoning, analysis, and prediction…Read&Listen More
key point 2 of 5
Approaches to measuring intangible values
The book posits that anything can be measured, including intangible values, if one knows how to think about measurement. The author challenges the notion that some things are immeasurable and introduces the concept that measurement is not necessarily about finding an exact value, but rather about reducing uncertainty. Intangible things like customer satisfaction, organizational flexibility, or even the value of information are all, according to the author, suitable for measurement…Read&Listen More
key point 3 of 5
Reducing uncertainty through measurement
Reducing uncertainty through measurement is a central theme in the book, which emphasizes that anything can be measured if one knows how to do it. The author begins by challenging the common belief that some things—like customer satisfaction, organizational flexibility, or innovation—are too intangible to measure. He asserts that by defining what is meant by ‘intangible’ concepts in more concrete terms, they become surprisingly tractable to measurement. The process involves identifying what observable effects these intangibles have, which can then be quantified…Read&Listen More
key point 4 of 5
The role of intuition in measurement
The role of intuition in measurement is critically examined, with the text suggesting that while intuition can be a useful starting point, it often leads to significant errors in judgment and decision-making. The author argues that intuition is inherently flawed due to cognitive biases, such as the confirmation bias, where people tend to seek out information that confirms their preconceptions, and the availability heuristic, where individuals overestimate the probability of events that are more memorable or emotionally charged…Read&Listen More
key point 5 of 5
Practical applications in different business areas
Through practical applications in different business areas, the value of measurement is demonstrated. The premise is that anything can be measured. Even seemingly intangible aspects of a business, like customer satisfaction or brand influence, can be quantified and analyzed. Measurement is essential to understanding performance, effectiveness, efficiency, and progress in any area of business. ..Read&Listen More