How to Measure Anything Workbook (eBook)

DOUGLAS W. HUBBARD is the inventor of Applied Information Economics (AIE). He is an internationally recognized expert in the field of decision analysis and challenging measurements and is a popular speaker at numerous conferences. AIE method has been applied to dozens of large Fortune 500 IT investments, military logistics, venture capital, aerospace, and environmental issues. Doug is the author of How to Measure Anything: Finding the Value of "Intangibles" in Business (Wiley).

Preface ix

About the Author xi

Part I Questions 1

Chapter 1 The Challenge of Intangibles 3

Learning Objectives 3

Chapter Overview 3

Questions 4

Chapter 2 An Intuitive Measurement Habit: Eratosthenes,
Enrico, and Emily 9

Learning Objectives 9

Chapter Overview 9

Questions 10

Chapter 3 The Illusion of Intangibles: Why Immeasurables
Aren't 15

Learning Objectives 15

Chapter Overview 15

Questions 16

Chapter 4 Clarifying the Measurement Problem 23

Learning Objectives 23

Chapter Overview 23

Questions 24

Chapter 5 Calibrated Estimates: How Much Do You Know Now?
31

Learning Objectives 31

Chapter Overview 31

Questions 32

Chapter 6 Quantifying Risk through Modeling 39

Learning Objectives 39

Chapter Overview 39

Questions 40

Chapter 7 Quantifying the Value of Information 47

Learning Objectives 47

Chapter Overview 47

Questions 48

Chapter 8 The Transition: From What to Measure to How to
Measure 55

Learning Objectives 55

Chapter Overview 55

Questions 56

Chapter 9 Sampling Reality: How Observing Some Things Tells
Us about All Things 61

Learning Objectives 61

Chapter Overview 61

Questions 62

Chapter 10 Bayes: Adding to What You Know Now 69

Learning Objectives 69

Chapter Overview 69

Questions 70

Chapter 11 Preference and Attitudes: The Softer Side of
Measurement 77

Learning Objectives 77

Chapter Overview 77

Questions 78

Chapter 12 The Ultimate Measurement Instrument: Human Judges
87

Learning Objectives 87

Chapter Overview 87

Questions 88

Chapter 13 New Measurement Instruments for Management
93

Learning Objectives 93

Chapter Overview 93

Questions 94

Chapter 14 A Universal Measurement Method: Applied
Information Economics 99

Learning Objectives 99

Chapter Overview 99

Questions 100

Part II Answers 105

Chapter 1 The Challenge of Intangibles 107

Chapter 2 An Intuitive Measurement Habit: Eratosthenes, Enrico,
and Emily 109

Chapter 3 The Illusion of Intangibles: Why Immeasurables
Aren't 111

Chapter 4 Clarifying the Measurement Problem 115

Chapter 5 Calibrated Estimates: How Much Do You Know Now?
117

Chapter 6 Quantifying Risk through Modeling 119

Chapter 7 Quantifying the Value of Information 125

Chapter 8 The Transition: From What to Measure to How to Measure
129

Chapter 9 Sampling Reality: How Observing Some Things Tells Us
about All Things 131

Chapter 10 Bayes: Adding to What You Know Now 135

Chapter 11 Preference and Attitudes: The Softer Side of
Measurement 137

Chapter 12 The Ultimate Measurement Instrument: Human Judges
139

Chapter 13 New Measurement Instruments for Management 141

Chapter 14 A Universal Measurement Method: Applied Information
Economics 143