If you want to avoid wasted time, effort, and cost acquiring information to support decision making:

  1. Identify what decision are you trying to support.
  2. Define what you are attempting to measure in observable consequences.
  3. Work out exactly how this thing being measured impacts on the decision.
  4. Identify what you already know now, with a range of uncertainty. (You WILL know something!)
  5. Identify the value to the decision maker of additional information which narrows the uncertainty.
  6. Decide how much to spend on getting the data.

For more detail, read “How To Measure Anything: Finding The Value Of “Intangibles” in Business”, Douglas W Hubbard.

 

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