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Metrics

There are two possible outcomes: If the result confirms the hypothesis, then you’ve made a measurement. If the result is contrary to the hypothesis, then you’ve made a discovery.

—Enrico Fermi1

If your stock price is sensitive to your company’s reputation, then managing the business processes that are the pillars of reputation is a managerial imperative and board oversight duty. Reputation scores and reputational value metrics can help. Clearly, senior management needs more detailed measurements than the board does. But, as Chapter 8 shows, there are three board-level duties—CEO compensation, asset protection, and business strategy—whose ...

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