How to measure anything : finding the value of "intangibles" in business

Anything can be measured. This bold assertion is the key to solving many problems in business and life in general. The myth that certain things can't be measured is a significant drain on our nation's economy, public welfare, the environment, and even national security. In fact, the chances are good that some part of your life or your professional responsibilities is greatly harmed by a lack of measurement-by you, your firm, or even your government.Building up from simple concepts to illustrate the hands-on yet intuitively easy application of advanced statistical techniques, How to Measure Anything reveals the power of measurement in our understanding of business and the world at large. This insightful and engaging book shows you how to measure those things in your business that until now you may have considered "immeasurable," including technology ROI, organizational flexibility, customer satisfaction, and technology risk. Offering examples that will get you to attempt measurements-even when it seems impossible-this book provides you with the substantive steps for measuring anything, especially uncertainty and risk.Don't wait-listen to this book and find out:-The three reasons why things may seem immeasurable but are not-Inspirational examples of where seemingly impossible measurements were resolved with surprisingly simple methods-How computing the value of information will show that you probably have been measuring all the wrong things-How not to measure risk-Methods for measuring "soft" things like happiness, satisfaction, quality, and more-How to fine-tune human judges to be powerful, calibrated measurement instruments-How you can use the Internet as an instrument of measurementA complete resource with case studies, How to Measure Anything illustrates how author Douglas Hubbard-creator of Applied Information Economics-has used his approach across various industries. You'll learn how any problem, no matter how difficult, ill-defined, or uncertain, can lend itself to measurement using proven methods. Straightforward and easy-to-follow, this is the resource you'll refer to again and again-beyond measure.

Praise for the Second Edition of How to Measure Anything: Finding the Value of "Intangibles" in Business

"How to Measure Anything was already my favorite book (just ahead of Hubbard's second book, The Failure of Risk Management) and one I actively promote to my students and colleagues. But the Second Edition, improving on the already exquisite first edition, is an achievement of its own. As a physicist and economist, I applied these techniques in several fields for several years. For the first time, somebody wrote together all these concerns on one canvas that is at the same time accessible to a broad audience and applicable by specialists. This book is a must for students and experts in the field of analysis (in general) and decision-making."
—Dr. Johan Braet, University of Antwerp, Faculty of Applied Economics, Risk Management and Innovation

"Doug Hubbard's book is a marvelous tutorial on how to define sound metrics to justify and manage complex programs. It is a must-read for anyone concerned about mitigating the risks involved with capital planning, investment decisions, and program management."
—Jim Flyzik, former Government CIO, White House Technology Advisor and CIO magazine Hall of Fame Inductee

Praise for the first edition—The bestselling Business Math book two years in a row!

"I love this book. Douglas Hubbard helps us create a path to know the answer to almost any question, in business, in science, or in life . . . How to Measure Anything provides just the tools most of us need to measure anything better, to gain that insight, to make progress, and to succeed."
—Peter Tippett, PhD, MD, Chief Technology Officer, CyberTrust, and inventor, first antivirus software

"Interestingly written and full of case studies and rich examples, Hubbard's book is a valuable resource for those who routinely make decisions involving uncertainty. This book is readable and quite entertaining, and even those who consider themselves averse to statistics may find it highly approachable."
—Strategic Finance

"This book is remarkable in its range of measurement applications and its clarity of style. A must-read for every professional who has ever exclaimed, 'Sure, that concept is important, but can we measure it?'"
—Dr. Jack Stenner, cofounder and CEO of MetaMetrics, Inc.

"Hubbard has made a career of finding ways to measure things that other folks thought were immeasurable. Quality? The value of telecommuting? The benefits of greater IT security? Public image? He says it can be done—and without breaking the bank . . . If you'd like to fare better in the project-approval wars, take a look at this book."
—ComputerWorld

"I use this book as a primary reference for my measurement class at MIT. The students love it because it provides practical advice that can be applied to a variety of scenarios, from aerospace and defense, healthcare, politics, etc."
—Ricardo Valerdi, PhD, Lecturer, MIT

Now updated with new research and even more intuitive explanations, a demystifying explanation of how managers can inform themselves to make less risky, more profitable business decisions This insightful and eloquent book will show you how to measure those things in your own business that, until now, you may have considered'immeasurable,'including customer satisfaction, organizational flexibility, technology risk, and technology ROI. Adds even more intuitive explanations of powerful measurement methods and shows how they can be applied to areas such as risk management and customer satisfaction Continues to boldly assert that any perception of'immeasurability'is based on certain popular misconceptions about measurement and measurement methods Shows the common reasoning for calling something immeasurable, and sets out to correct those ideas Offers practical methods for measuring a variety of'intangibles'Adds recent research, especially in regards to methods that seem like measurement, but are in fact a kind of'placebo effect'for management – and explains how to tell effective methods from management mythology Written by recognized expert Douglas Hubbard-creator of Applied Information Economics-How to Measure Anything, Second Edition illustrates how the author has used his approach across various industries and how any problem, no matter how difficult, ill defined, or uncertain can lend itself to measurement using proven methods. "Anything can be measured. This bold assertion is the key to solving many problems in business and life in general. The myth that certain things can't be measured is a significant drain on our nation's economy, public welfare, the environment, and even national security. In fact, the chances are good that some part of your life or your professional responsibilities is greatly harmed by a lack of measurement--by you, your firm, or even your government. Building up from simple concepts to illustrate the hands-on yet intuitively easy application of advanced statistical techniques, 'How to Measure Anything, Second Edition' reveals the power of measurement in our understanding of business at the world at large. This insightful and engaging book shows you how to measure those things in your business that, until now, you may have considered "immeasurable," including technology ROI, organizational flexibility, customer satisfaction, and technology risk. Offering examples that will get you to attempt measurements--even when it seems impossible--this book provides you with the substantive steps for measuring anything, especially uncertainty and risk Intangibles and the challenge An intuitive measurement habit : Eratosthenes, Enrico, and Emily The illusion of intangibles : why immeasurables aren't Clarifying the measurement problem Calibrated estimates : how much do you know now? Measuring risk through modeling Measuring the value of information The transition : from what to measure to how to measure Sampling reality: how observing some things tells us about all things Bayes : adding to what you know now Preference and attitudes : the softer side of measurement The ultimate measurement instrument : human judges New measurement instruments for management A universal measurement methods : applied information economics. Now updated with new research and even more intuitive explanations, a demystifying explanation of how managers can inform themselves to make less risky, more profitable business decisions. This insightful and eloquent book will show you how to measure those things in your own business that, until now, you may have considered "immeasurable," including customer satisfaction, organizational flexibility, technology risk, and technology ROI.: Adds even more intuitive explanations of powerful measurement methods and shows how they can be applied to areas such as risk management and custome