misLeading Indicators: How to Reliably Measure Your Business

by Philip Green, George Gabor

Overview

This book reveals the hidden and potentially misleading nature of measurements, empowering readers to avoid making critical business decisions that are harmful, unreasonable, unwarranted, or plain wrong.

Decision makers in business and government are more reliant than ever on measurements, such as business performance indicators, bond ratings, Six-Sigma indicators, stock ratings, opinion polls, and market research. Yet many popular statistical and business books and courses relating to measurement are based on flawed principles, leading managers to the wrong conclusions—and ultimately, the wrong decisions. misLeading Indicators: How to Reliably Measure Your Business provides something unique and invaluable: trustworthy tools for judging measurements.

Each chapter illustrates the four key principles for reliable measurements: sufficient background information, accuracy and precision, reasonable inferences, and reality checks in different situations. After the three fundamental methods of measuring are defined, the authors expand to the application and interpretation of measurements in specific areas, including business performance, risk management, process, control, finance, and economics. This book supplies essential information for managers in business and government who depend on accurate information to run their organizations, as well as the consultants who advise them.

Product Details

ISBN-13:	9780313395956
Publisher:	Bloomsbury Academic
Publication date:	02/22/2012
Pages:	304
Sales rank:	938,941
Product dimensions:	6.10(w) x 9.50(h) x 1.30(d)

About the Author

Philip Green is chairman and CEO of First Resource Management Group, Inc.

George Gabor, now retired, was professor of statistics at Dalhousie University, Halifax, Nova Scotia.

Table of Contents

Preface
Acknowledgments
ONE: What Indicators Indicate
TWO: Counting, Recounting, and Miscounting
THREE: Measuring Accurately with Instruments
FOUR: Rating, Scoring, and Ranking Reliably
FIVE: How People React to Measurements
SIX: Why Performance Dashboards Mislead
SEVEN: Focusing Employees with Measurements
EIGHT: Going Against the Flow: Navigating Changing Data Streams
NINE: How Averages Distort Indicators
TEN: Opposing Views: Are You Being Misled?
ELEVEN: Misleading Ourselves with Measurements of Risk
Notes
Bibliography
Index

What People are Saying About This

Phil Rosenzweig

"Lively, well-written, and full of fascinating examples. All managers, in all functions and areas of responsibility, will benefit from these wise insights. Green and Gabor have done a superb job of bringing common measurement errors into their focus. I found misLeading Indicators a joy to read!"

Dr. Michael E. Raynor

"Measurement is central not only to management but to much of life. However, only with an understanding of an idea's limitations can we hope to realize its full power. Green and Gabor, in a thoughtful synthesis of validated theory and tested practical applications, provide a much-needed perspective on what we can and cannot measure. The result is valuable insight into how we can achieve our most cherished goals."

Gadi Meir VP

"After reading the first chapter, I already had a full page of notes and ideas to take with me to the office tomorrow! In the extremely busy life of executives, I fear we simply take the accuracy, relevance, and meaningfulness of reports and measurements for granted. misLeading Indicators effectively exposes the shortcomings and implications of not questioning them."

Lawrence Solomon

"Don't think for a minute that this book will only enlighten those in business. After reading misLeading Indicators, no one will look at any measurement or statistic without a healthy dose of skepticism."

Michael B. Deeb

"You think you know performance measurement? Think again! I've been in the investment business for 50 years—this book will make you reexamine many investment decisions you have made."

Editorial Reviews

You think you know performance measurement? Think again! I've been in the investment business for 50 years - this book will make you reexamine many investment decisions you have made.
--Michael B. Deeb, Chairman, Hampton Securities Limited.

Michael Deeb

Don't think for a minute that this book will only enlighten those in business. After reading misLeading Indicators, no one will look at any measurement or statistic without a healthy dose of skepticism.
--Lawrence Solomon Columnist, Financial Post, Toronto.

Lawrence Solomon

Measurement is central not only to management but to much of life. However, only with an understanding of an idea's limitations can we hope to realize its full power. Green and Gabor, in a thoughtful synthesis of validated theory and tested practical applications, provide a much-needed perspective on what we can and cannot measure. The result is valuable insight into how we can achieve our most cherished goals.
--Dr. Michael E. Raynor, Director, Deloitte Consulting LLP Author of The Innovator's Solution, The Strategy Paradox, and The Innovator's Manifesto.

Dr. Michael E. Raynor

After reading the first chapter, I already had a full page of notes and ideas to take with me to the office tomorrow! In the extremely busy life of executives, I fear we simply take the accuracy, relevance, and meaningfulness of reports and measurements for granted. misLeading Indicators effectively exposes the shortcomings and implications of not questioning them.
--Gadi Meir, VP, Strategic Initiatives, Business Real Estate Financing, Wells Fargo Bank.

Gadi Meir

Lively, well-written, and full of fascinating examples. All managers, in all functions and areas of responsibility, will benefit from these wise insights. Green and Gabor have done a superb job of bringing common measurement errors into their focus. Entertaining and insightful - as well as brimming with practical value. I found misLeading Indicators a joy to read!
--Phil Rosenzweig, Professor of Strategy, IMD, and author of The Halo Effect.

Phil Rosenzweig