Explore the World's Best Ideas
Join today and uncover 100+ curated journeys from 50+ topics. Unlock access to our mobile app with extensive features.
The Myth: “You Can’t Measure That!”
The belief that some things (like innovation, risk, or employee satisfaction) are unmeasurable is a myth.
If it matters, it’s measurable to some degree.
Uncertainty can always be reduced.
Measurement is not about perfect precision—it’s about reducing ignorance.
33
189 reads
Defining What You Really Need to Know
Don’t measure everything—clarify the decision you’re trying to improve.
Start with the decision context.
Ask: “What would I do differently if I had this information?”
Convert vague terms (like “success,” “engagement,” “risk”) into specific observable outcomes.
36
166 reads
The Concept of Measurement
Measurement = Observations + Reduction in Uncertainty.
A measurement is any observation that helps you make better decisions.
Even a small reduction in uncertainty can be highly valuable.
Use range estimates (90% confidence intervals), not fixed numbers.
35
145 reads
Value of Information (VOI)
Some measurements are worth more than others—VOI tells you which.
VOI = how much a measurement reduces your expected loss or improves your decision.
If a piece of data wouldn’t change your choice, don’t bother collecting it.
Focus on high-uncertainty, high-impact variables.
36
140 reads
Simple, Low-Cost Measurement Methods
You don’t need massive datasets—a few smart observations can go a long way.
Sampling: Small samples can reveal a lot.
Expert Estimation: When calibrated, expert judgment is useful.
Use Bayesian updating to incorporate new data into prior beliefs.
Simple tools: surveys, simulations, bootstrapping, Fermi problems.
35
121 reads
Calibration: Aligning Confidence with Reality
Most people are overconfident—calibration corrects this.
Learn to assign realistic confidence intervals (e.g., “I’m 90% sure the answer is between X and Y”).
Track how often you’re right when you say “90% confident.”
Training in calibration massively improves estimation accuracy.
34
110 reads
The Measurement Process
A repeatable, structured process makes measurement work in any context.
Define the Decision – What are you trying to improve?
Determine What to Measure – What variable reduces uncertainty in your decision?
Model the Value of Information – Prioritize your efforts.
Calibrate and Gather Data – Smart, small, fast.
Analyze and Update – Apply Bayesian logic and statistical tools.
Apply the Result – Make the decision.
Iterate and Improve – Every decision is a feedback loop.
36
91 reads
Final Core Belief from the Book
“If a decision is worth making, it’s worth measuring something to improve it.”
38
100 reads
IDEAS CURATED BY
Discover Key Ideas from Books on Similar Topics
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates