How to Measure Anything Workbook: Finding the Value of Intangibles in Business

CHAPTER 8 The Transition: From What to Measure to How to Measure

LEARNING OBJECTIVES

• Define “measurement instrument” and describe seven advantages of its use.
• Use “decomposition” to further reduce uncertainty of a variable.
• Review the tips provided for conducting secondary research.
• Describe some basic methods of observation for the proposed object of measurement.
• Outline the considerations for a measurement expenditure relative to EVPI.
• Describe the differences between systemic and random error, describe the differences between measurement accuracy and precision, and discuss the benefits of random sampling.
• Outline and give an example of three types of observation bias.

CHAPTER OVERVIEW

Chapter NaN gives us strategies to determine what type of measurement methods to use and discusses the concept of measurement instruments. The benefits to decomposition are outlined, including that they may make further measurements unnecessary. Benefits of conducting secondary research and a variety of empirical methods for describing the object of measurement are given. The Expected Value of Perfect Information (EVPI) should be a guideline for measurement effort.

All measurements have error, and different types of error as well as measurement accuracy and precision are important to consider. Types of bias are outlined. The chapter closes by summarizing methods for identifying a measurement instrument and offering general tips for their use.

QUESTIONS

1. Which of the following questions ...