Measuring anything in life or business can be an incredibly daunting task, as it requires us to quantify the value of all types of complexities. But with the right understanding and proper tools, the right outcomes can be achieved with less uncertainty and waste.
In How to Measure Anything: Finding the Value of Intangibles in Business, Douglas W. Hubbard provides readers with a comprehensive and practical guide on how to measure the value of seemingly immeasurable elements in order to make data-based decisions. By looking at tangible and intangible objects such as resources, projects, and variables, Hubbard provides tools and techniques that can be used to understand, measure, and often re-allocate resources in an efficient, cost-effective manner.
At the heart of the book is Hubbard’s concept of “information economics”, which is defined as the scientific study of how to best use information for decision-making. He argues that information is a very valuable asset and can be used to maximize efficiency and increase productivity in any endeavor. Hubbard encourages readers to think of information as an investment, using it to make decisions that are based on measurable outcomes and have a significantly higher return on investment.
One of the key takeaways from Hubbard’s book is the importance of data-driven decision-making. He outlines several methods that can be used to turn assumptions into tangible measurements. For example, Hubbard explains how “probabilistic measurement” can be used to reduce uncertainty. This process relies on using statistics, such as confidence intervals, and Bayesian analysis to assign probabilities to different outcomes and make decisions accordingly.
In addition, Hubbard outlines a number of methods for measuring intangible items, such as customer satisfaction. His “five-principle” approach suggests that instead of making assumptions, we should assess and verify customer satisfaction according to predefined criteria. This is done by creating a survey, assessing and analyzing customer feedback, and then recognizing any anomalies or trends.
Finally, Hubbard offers up some advice on how to apply all of these techniques effectively. His two-step approach involves initially developing a measurement system, and then using that system to measure and track information. As he explains, analysis of the data gathered is important for gauging progress and success, as well as for making adjustments and improvements.
Overall, How to Measure Anything is an invaluable guide for anybody who wants to make better, data-driven decisions. Hubbard’s comprehensive and systematic approach helps readers to understand and measure anything, helping them to maximize return on investment and reduce uncertainty. Whether you’re trying to understand customer satisfaction or optimize your budget, this book provides the practical methods you need to achieve success.