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How to Measure Anything: Finding the Value of Intangibles in Business [Hardcover]

Douglas W. Hubbard

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Book Description

April 1 2010

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.


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Review

"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, Ph.D., Lecturer, MIT
--This text refers to the MP3 CD edition.

Review

"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 and 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

"Now, performance measures can be defined for even the most difficult problems. 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 from How to Measure Anything, First Edition

"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...Hubbard helps us by showing us that when we seek metrics to solve problems, we are really trying to know something 'better than we know it now,' to put something into context, to find insight to help us get our jobs done, to be more successful, to discover things, or to build things. 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, Ph.D., M.D., Chief Technology Officer at CyberTrust and inventor of the 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

"Hubbard has made a career of finding ways to measure things that other folks thought were immeasurable. Quality? The value of telecommuting? The risk of IT project failure? 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, August 2007

"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 & defense, healthcare, politics, etc."
Ricardo Valerdi, PhD, Lecturer, MIT

"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.


Inside This Book (Learn More)
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Front Cover | Copyright | Table of Contents | Excerpt | Index | Back Cover
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Amazon.com: 4.6 out of 5 stars  61 reviews
49 of 52 people found the following review helpful
5.0 out of 5 stars Brilliant! How to quantify the unquantifiable Aug 7 2010
By Alexandra Carmichael - Published on Amazon.com
Format:Hardcover
Some things are easy to measure. Time, money, exercise, calories, location - all of these are relatively straightforward to repeatably determine or calculate.

But how does one go about measuring happiness? What about compassion, or public influence, or creativity? These are more intangible, harder to pin down to a number that means anything.

Douglas Hubbard has written an impressive work called "How To Measure Anything: Finding the Value of Intangibles in Business."

While it's written primarily for business people, the lessons transfer smoothly to self-experimenters. Hubbard begins with a compelling case for why to measure intangibles:

"Often, an important decision requires better knowledge of the alleged intangible, but when a [person] believes something to be immeasurable, attempts to measure it will not even be considered.

As a result, decisions are less informed than they could be. The chance of error increases. Resources are misallocated, good ideas are rejected, and bad ideas are accepted. Money is wasted. In some cases life and health are put in jeopardy. The belief that some things--even very important things--might be impossible to measure is sand in the gears of the entire economy.

Any important decision maker could benefit from learning that anything they really need to know is measurable."

He goes on to explain in detail how to measure intangibles, including sections on how to clarify problems, calibrate estimates, measure risk, sample reality, and use Bayesian statistics to add to available knowledge. He also describes his Applied Information Economics (AIE) Approach that ties together several threads of his ideas:

"The AIE approach addresses four things:
1. How to model a current state of uncertainty
2. How to compute what else should be measured
3. How to measure those things in a way that is economically justified
4. How to make a decision"

I'm working my way through the book, and am incredibly grateful to Douglas Hubbard for writing it.
15 of 15 people found the following review helpful
5.0 out of 5 stars Missing Link May 30 2011
By Darius Koenig - Published on Amazon.com
Format:Hardcover|Amazon Verified Purchase
This book provides the link between the college statistical classes and the "real" world that is full of uncertainty, incomplete information and things that seemingly are impossible to measure. The most important aspects of the book are not the mathmatical techniques but the conceptual groundwork that help break down previously held paradigms about measurement. Once these barriers have been removed then possibilities open up. Highly recommended.
15 of 15 people found the following review helpful
5.0 out of 5 stars Extremely Practical for any Risk Manager April 1 2011
By ccooper - Published on Amazon.com
Format:Hardcover|Amazon Verified Purchase
Mr. Hubbard provides a very well written analysis on how the things most people think can't be measured really can be measured. The book provides very thought provoking insights on how many of today's most popular "risk assessment" frameworks fall short and often introduce more error. It also provides proven and very practical and useful ways (with examples) to think about risk that helps management better communicate the uncertainty they have in their assessments and defining a proven method for setting up measurements that can produce a more consistent result that provide a lot of power in decision making. The book also outlines the need for risk analysts to get "calibrated" which is something that was very eye opening and game changing and crucial to improving our risk and decision making. All in all one of the best books I have ever read related to risk management that goes way beyond theory, and uses proven techniques deployed in the insurance and science areas.

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