Product Description

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

"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. 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, PhD, M.D.
Chief Technology Officer at CyberTrust
and inventor of the first antivirus software

"Doug Hubbard has provided an easy–to–read, demystifying explanation of how managers can inform themselves to make less risky, more profitable business decisions. We encourage our clients to try his powerful, practical techniques."
–Peter Schay
EVP and COO of
The Advisory Council

"As a reader you soon realize that actually everything can be measured while learning how to measure only what matters. This book cuts through conventional clichés and business rhetoric and offers practical steps to using measurements as a tool for better decision making. Hubbard bridges the gaps to make college statistics relevant and valuable for business decisions."
–Ray Gilbert
EVP Lucent

"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 MetraMetrics, Inc.

Product Details

• Amazon Sales Rank: #84436 in Books
• Published on: 2007-08-17
• Original language: English
• Number of items: 1
• Binding: Hardcover
• 304 pages

Review
"Over the past several posts I′ve been discussing how networkers can reduce supposed "immeasurables" or "intangibles" to something that can in fact be measured, and I′ve been using Douglas Hubbard′s excellent book How to Measure Anything as a guide. I highly recommend that you pick up a copy of the book if you want more details about the approach I′ve been discussing. For a small book, it covers a lot of ground." (networkworld.com, April 4th, 2009)

"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, September 2008)

"How many times have you been asked to quantify something that is nebulous or intangible? As a system engineer at Sun, this happens to me all the time. A colleague of mine referred me to How to Measure Anything…one of the best books I′ve seen in this area." (blogs.sun.com; 1/28/08)

"After reading Hubbard′s excellent book on ′How to Measure Anything′, I was able to immediately solve several measurement challenges for my CEO and Business Owner colleagues. It should be on every manager′s desk." (Amazon.com; 10/07)

"…the book for anyone who wants to know how to measure the value of information or any other intangible asset." (Computer Weekly, Tuesday 18th September 2007)

"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. Many IT steering committees won′t approve projects that "can′t be measured," so it behooves CIOs to figure this out! ...... If you′d like to fare better in the project–approval wars, take a look at this book." (ComputerWorld, 8/07)

"… allows [companies] to measure performance in such diverse areas as customer satisfaction, employee morale, quality and organisational flexibility." (CPO Agenda, Autumn 2007)

CPO Agenda, Autumn 2007
"... allows [companies] to measure performance in such diverse areas as customer satisfaction, employee morale, quality and organisational flexibility."

From the Inside Flap
How to Measure Anything: Finding the Value of Intangibles in Business

From market research to information technology to financial reporting, How to Measure Anything reveals the power of measurement to our understanding of business and the world at large. 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.

With examples ranging from how a marine biologist measures the population of fish in a large lake to how the United States Marine Corps found out what really matters in forecasting fuel requirements for the battlefield, you will discover a "universal approach" to measuring "intangibles," along with some interesting methods for particular problems.

Here, you will learn about:

• The Illusion of Intangibles: Why Immeasurables Aren′t

• Calibrated Estimates: How Much Do You Know Now?

• Measuring Risk: Introduction to the Monte Carlo

• Sampling Reality: How Observing Some Things Tells Us about All

• Unconventional Measurement Instruments such as the internet, human judges, prediction markets, and more

• Measuring the Value of Information: What′s It Worth to Measure?

Written by recognized expert Douglas Hubbard—creator of Applied Information Economics—How to Measure Anything 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. Direct and easy–to–follow, How to Measure Anything is a resource no manager or executive can afford to be without.

Customer Reviews

More specifically, how to measure anything that is especially important, including intangibles

"I wrote this book to correct a myth that permeates many organizations today: that certain things can't be measured." Douglas Hubbard goes on to note that he has made a career out of measuring the sorts of things many thought were immeasurable. Intangibles, for example, "that appear to be completely intractable to be measured...in a way that is economically justified." Hubbard notes that there are several common misconceptions about intangibles. He offers what he characterizes as a "universal approach," Applied Information Economics (AIE), to measure an intangible, providing with that explanation some "interesting methods for particular problems."

He duly recognizes that only what is most important (tangible or intangible) should be measured; also, that what is currently most important may not retain that importance; and, that information needs change, sometimes significantly and unexpectedly. That said, basic questions must constantly be asked and answered:

1. What are our most important information needs? Why?

2. How best to obtain and then verify that information?

3. What will we then do with that information?

4. How can we then measure (accurately, consistently, and sufficiently) the impact of actions taken based on that information?

To his credit, Hubbard makes every effort to provide information, explanations, and recommendations that are (in his words) as "simple as can be"; nonetheless, some of the material may prove daunting, at least it did to me. I appreciate the inclusion of dozens of real-world examples that illustrate key points. Hubbard also makes effective use of other reader-friendly devices, such as checklists inserted throughout his narrative. In his own words, here is how he organizes his material:

In Section One (Chapters 1-3), he "makes the case that everything is measurable and offers some examples that should inspire readers to attempt measurements even when it seems impossible."

In Section Two (Chapters 4-7), he "begins to get into more specific substance about how to measure things - specifically uncertainty, risk - and the value of information."

In Section Three (Chapters 8-10), he "deals with how to reduce uncertainty by various methods of observation including random sampling and controlled experiments."

And then in Section Four (Chapters 11-14), Hubbard offers "an eclectic collection of interesting measurement solutions and case examples."

Many readers will appreciate having the Appendix (Pages 269-278) which provides both the questions and answers for various calibration tests, including "Calibration Survey for Binary: B" that also includes percentages to indicate degree of confidence that the respondent is correct.

Earlier, I suggested that this is by no means an "easy read." It isn't. Nor will this book respond directly to every executive's immediate needs and objectives. However, it will generously reward those who need assistance with finding and measuring the intangibles in business if they absorb and digest the material with appropriate care. To those about to begin reading this book, Douglas Hubbard' offers this recommendation: Write down those things they believe are immeasurable or, at least they are not sure to how to measure. "After reading this book, my goal is that you are able to identify methods for measuring each and every one of them." I presume to add another recommendation: Highlights key passages and titles of checklists. By doing so, you will be able to facilitate, indeed expedite frequent review of key concepts and insights later.

"You treat a disease, you win, you lose. You treat a person I'll guarantee you'll win"
Do you remember the famous movie "Patch Adams"? My favourite quote, I believe will solve lots of the current Enterprise Architecture problems, Technology debates or solution approach,
Arthur Mendelson: How many fingers do you see?
Hunter Patch Adams: Four.
Arthur Mendelson: No no! Look beyond the fingers! Now tell me how many you see.
This remarkable book may help us to be a "Patch Adams". This book clarifies the difference between the calculation versus Measurement. This book unravels your third eye, provides you the most powerful techniques,solves the measurement challenges.
We may not be Eratosthenes, Enrico, & Emily in one night. But we should have the attitude to be like Fermi in one day.
This book simplifies the measurement problems, explains the calibrated estimation techniques, Risk Measurement Techniques and help us to measure the value of information.
After reading this book you should take some break, take a deep breath and revisit your measuring challenges. You should be able to see the solution.
IT investments are often the riskiest investments any organizations make yet IT is far behind other areas of business in quantifying risk and other so-called "intangibles" so that prudent investment decisions can be made. This book shows you how to measure the intangibles, in fact it proves that,intangible should not be a word in the dictionary, if you follow Applied Information Economics.
AIE unravels the Measurement Inversion Symptoms and explains what is the most important measurement candidate? It answers the importance of tremendous power of information. This book explains the expected Opportunity Loss Factor, Lens Model and Investment Boundary.
I must admit that Douglas W Hubbard has done a remarkable job. He has clearly made a point that measurement challenge needs to be handled with a different views, according to Patch Adams "You're focusing on the problem. If you focus on the problem, you can't see the solution. Never focus on the problem!". This book now offers us the best of Statistical/Probabilistic/Actuarial Models, Monte Carlo Simulations, Real Options Theory, Mdern Portfolio Theory/Portfolio Management and Risk Analysis approaches.
A MUST for all IT Professionals.

What it says on the cover (almost)
A good collection of practical advice on how to measure the so-called "intangibles" in business, whether by creatively analysing information, or just calibrating your own intuitive sense.

Key point: the more important a value, the less likely it is to be properly measured. Spending $1000: present a detailed business case with cost-benefit analysis. Spending $10M? The return comes from improved public image and customer perception.