Good definitions needed for reliable measurements

The trustworthiness of any measurement depends crucially on the definition of the thing you are measuring.  This in turn depends on having adequate background information to define it. Even apparently simple things can be devilish to define: take on-time delivery. What is on-time? What counts as a delivery? Or try absenteeism. Is an employee ‘absent’ [...]

Why you cannot measure risk

In 2008, Collateralized Debt Obligations (CDO) that had been given very high ratings by the credit rating agencies collapsed. The rating agencies got blamed for faulty ratings. Once a mining association gave a coal mine the “Safest Mine Award.” One month later the mine blew up and killed 32 miners. The award is based on [...]