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


Douglas W. Hubbard - 1985
    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 cliches 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.

The Signal and the Noise: Why So Many Predictions Fail—But Some Don't


Nate Silver - 2012
    He solidified his standing as the nation's foremost political forecaster with his near perfect prediction of the 2012 election. Silver is the founder and editor in chief of FiveThirtyEight.com. Drawing on his own groundbreaking work, Silver examines the world of prediction, investigating how we can distinguish a true signal from a universe of noisy data. Most predictions fail, often at great cost to society, because most of us have a poor understanding of probability and uncertainty. Both experts and laypeople mistake more confident predictions for more accurate ones. But overconfidence is often the reason for failure. If our appreciation of uncertainty improves, our predictions can get better too. This is the "prediction paradox": The more humility we have about our ability to make predictions, the more successful we can be in planning for the future.In keeping with his own aim to seek truth from data, Silver visits the most successful forecasters in a range of areas, from hurricanes to baseball, from the poker table to the stock market, from Capitol Hill to the NBA. He explains and evaluates how these forecasters think and what bonds they share. What lies behind their success? Are they good-or just lucky? What patterns have they unraveled? And are their forecasts really right? He explores unanticipated commonalities and exposes unexpected juxtapositions. And sometimes, it is not so much how good a prediction is in an absolute sense that matters but how good it is relative to the competition. In other cases, prediction is still a very rudimentary-and dangerous-science.Silver observes that the most accurate forecasters tend to have a superior command of probability, and they tend to be both humble and hardworking. They distinguish the predictable from the unpredictable, and they notice a thousand little details that lead them closer to the truth. Because of their appreciation of probability, they can distinguish the signal from the noise.

Everybody Lies: Big Data, New Data, and What the Internet Can Tell Us About Who We Really Are


Seth Stephens-Davidowitz - 2017
    This staggering amount of information—unprecedented in history—can tell us a great deal about who we are—the fears, desires, and behaviors that drive us, and the conscious and unconscious decisions we make. From the profound to the mundane, we can gain astonishing knowledge about the human psyche that less than twenty years ago, seemed unfathomable.Everybody Lies offers fascinating, surprising, and sometimes laugh-out-loud insights into everything from economics to ethics to sports to race to sex, gender and more, all drawn from the world of big data. What percentage of white voters didn’t vote for Barack Obama because he’s black? Does where you go to school effect how successful you are in life? Do parents secretly favor boy children over girls? Do violent films affect the crime rate? Can you beat the stock market? How regularly do we lie about our sex lives and who’s more self-conscious about sex, men or women?Investigating these questions and a host of others, Seth Stephens-Davidowitz offers revelations that can help us understand ourselves and our lives better. Drawing on studies and experiments on how we really live and think, he demonstrates in fascinating and often funny ways the extent to which all the world is indeed a lab. With conclusions ranging from strange-but-true to thought-provoking to disturbing, he explores the power of this digital truth serum and its deeper potential—revealing biases deeply embedded within us, information we can use to change our culture, and the questions we’re afraid to ask that might be essential to our health—both emotional and physical. All of us are touched by big data everyday, and its influence is multiplying. Everybody Lies challenges us to think differently about how we see it and the world.

Thinking in Systems: A Primer


Donella H. Meadows - 2008
    Edited by the Sustainability Institute’s Diana Wright, this essential primer brings systems thinking out of the realm of computers and equations and into the tangible world, showing readers how to develop the systems-thinking skills that thought leaders across the globe consider critical for 21st-century life.Some of the biggest problems facing the world—war, hunger, poverty, and environmental degradation—are essentially system failures. They cannot be solved by fixing one piece in isolation from the others, because even seemingly minor details have enormous power to undermine the best efforts of too-narrow thinking.While readers will learn the conceptual tools and methods of systems thinking, the heart of the book is grander than methodology. Donella Meadows was known as much for nurturing positive outcomes as she was for delving into the science behind global dilemmas. She reminds readers to pay attention to what is important, not just what is quantifiable, to stay humble, and to stay a learner.In a world growing ever more complicated, crowded, and interdependent, Thinking in Systems helps readers avoid confusion and helplessness, the first step toward finding proactive and effective solutions.

The Wisdom of Crowds


James Surowiecki - 2004
    With boundless erudition and in delightfully clear prose, Surowiecki ranges across fields as diverse as popular culture, psychology, ant biology, behavioral economics, artificial intelligence, military history, and politics to show how this simple idea offers important lessons for how we live our lives, select our leaders, run our companies, and think about our world.

Superforecasting: The Art and Science of Prediction


Philip E. Tetlock - 2015
    Unfortunately, people tend to be terrible forecasters. As Wharton professor Philip Tetlock showed in a landmark 2005 study, even experts’ predictions are only slightly better than chance. However, an important and underreported conclusion of that study was that some experts do have real foresight, and Tetlock has spent the past decade trying to figure out why. What makes some people so good? And can this talent be taught?   In Superforecasting, Tetlock and coauthor Dan Gardner offer a masterwork on prediction, drawing on decades of research and the results of a massive, government-funded forecasting tournament. The Good Judgment Project involves tens of thousands of ordinary people—including a Brooklyn filmmaker, a retired pipe installer, and a former ballroom dancer—who set out to forecast global events. Some of the volunteers have turned out to be astonishingly good. They’ve beaten other benchmarks, competitors, and prediction markets. They’ve even beaten the collective judgment of intelligence analysts with access to classified information. They are "superforecasters."   In this groundbreaking and accessible book, Tetlock and Gardner show us how we can learn from this elite group. Weaving together stories of forecasting successes (the raid on Osama bin Laden’s compound) and failures (the Bay of Pigs) and interviews with a range of high-level decision makers, from David Petraeus to Robert Rubin, they show that good forecasting doesn’t require powerful computers or arcane methods. It involves gathering evidence from a variety of sources, thinking probabilistically, working in teams, keeping score, and being willing to admit error and change course. Superforecasting offers the first demonstrably effective way to improve our ability to predict the future—whether in business, finance, politics, international affairs, or daily life—and is destined to become a modern classic.

Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy


Cathy O'Neil - 2016
    Increasingly, the decisions that affect our lives--where we go to school, whether we can get a job or a loan, how much we pay for health insurance--are being made not by humans, but by machines. In theory, this should lead to greater fairness: Everyone is judged according to the same rules.But as mathematician and data scientist Cathy O'Neil reveals, the mathematical models being used today are unregulated and uncontestable, even when they're wrong. Most troubling, they reinforce discrimination--propping up the lucky, punishing the downtrodden, and undermining our democracy in the process.

Nudge: Improving Decisions About Health, Wealth, and Happiness


Richard H. Thaler - 2008
    Thaler, and Cass R. Sunstein: a revelatory look at how we make decisionsNew York Times bestsellerNamed a Best Book of the Year by The Economist and the Financial Times Every day we make choices—about what to buy or eat, about financial investments or our children’s health and education, even about the causes we champion or the planet itself. Unfortunately, we often choose poorly. Nudge is about how we make these choices and how we can make better ones. Using dozens of eye-opening examples and drawing on decades of behavioral science research, Nobel Prize winner Richard H. Thaler and Harvard Law School professor Cass R. Sunstein show that no choice is ever presented to us in a neutral way, and that we are all susceptible to biases that can lead us to make bad decisions. But by knowing how people think, we can use sensible “choice architecture” to nudge people toward the best decisions for ourselves, our families, and our society, without restricting our freedom of choice.

Whiplash: How to Survive Our Faster Future


Joichi Ito - 2016
    The world is more complex and volatile today than at any other time in our history. The tools of our modern existence are getting faster, cheaper, and smaller at an exponential rate, transforming every aspect of society, from business to culture and from the public sphere to our most private moments. The people who succeed will be the ones who learn to think differently. In Whiplash, Joi Ito and Jeff Howe distill that logic into nine organizing principles for navigating and surviving this tumultuous period: Emergence over AuthorityPull over PushCompasses over MapsRisk over SafetyDisobedience over CompliancePractice over TheoryDiversity over AbilityResilience over StrengthSystems over Objects Filled with incredible case studies and cutting-edge research and philosophies from the MIT Media Lab and beyond, Whiplash will help you adapt and succeed in this unpredictable world.

The Culture Map: Breaking Through the Invisible Boundaries of Global Business


Erin Meyer - 2014
    Renowned expert Erin Meyer is your guide through this subtle, sometimes treacherous terrain where people from starkly different backgrounds are expected to work harmoniously together.When you have Americans who precede anything negative with three nice comments; French, Dutch, Israelis, and Germans who get straight to the point (“your presentation was simply awful”); Latin Americans and Asians who are steeped in hierarchy; Scandinavians who think the best boss is just one of the crowd—the result can be, well, sometimes interesting, even funny, but often disastrous.Even with English as a global language, it’s easy to fall into cultural traps that endanger careers and sink deals when, say, a Brazilian manager tries to fathom how his Chinese suppliers really get things done, or an American team leader tries to get a handle on the intra-team dynamics between his Russian and Indian team members.In The Culture Map, Erin Meyer provides a field-tested model for decoding how cultural differences impact international business. She combines a smart analytical framework with practical, actionable advice for succeeding in a global world.

The End of Power: From Boardrooms to Battlefields and Churches to States, Why Being In Charge Isn't What It Used to Be


Moisés Naím - 2013
    But power is not merely shifting and dispersing. It is also decaying. Those in power today are more constrained in what they can do with it and more at risk of losing it than ever before. In The End of Power, award-winning columnist and former Foreign Policy editor Moisés Naím illuminates the struggle between once-dominant megaplayers and the new micropowers challenging them in every field of human endeavor. Drawing on provocative, original research, Naím shows how the antiestablishment drive of micropowers can topple tyrants, dislodge monopolies, and open remarkable new opportunities, but it can also lead to chaos and paralysis. Naím deftly covers the seismic changes underway in business, religion, education, within families, and in all matters of war and peace. Examples abound in all walks of life: In 1977, eighty-nine countries were ruled by autocrats while today more than half the world's population lives in democracies. CEO's are more constrained and have shorter tenures than their predecessors. Modern tools of war, cheaper and more accessible, make it possible for groups like Hezbollah to afford their own drones. In the second half of 2010, the top ten hedge funds earned more than the world's largest six banks combined. Those in power retain it by erecting powerful barriers to keep challengers at bay. Today, insurgent forces dismantle those barriers more quickly and easily than ever, only to find that they themselves become vulnerable in the process. Accessible and captivating, Naím offers a revolutionary look at the inevitable end of power—and how it will change your world.

The Tipping Point: How Little Things Can Make a Big Difference


Malcolm Gladwell - 2000
    Just as a single sick person can start an epidemic of the flu, so too can a small but precisely targeted push cause a fashion trend, the popularity of a new product, or a drop in the crime rate. This widely acclaimed bestseller, in which Malcolm Gladwell explores and brilliantly illuminates the tipping point phenomenon, is already changing the way people throughout the world think about selling products and disseminating ideas.Gladwell introduces us to the particular personality types who are natural pollinators of new ideas and trends, the people who create the phenomenon of word of mouth. He analyzes fashion trends, smoking, children's television, direct mail, and the early days of the American Revolution for clues about making ideas infectious, and visits a religious commune, a successful high-tech company, and one of the world's greatest salesmen to show how to start and sustain social epidemics.

Trust Me, I'm Lying: Confessions of a Media Manipulator


Ryan Holiday - 2012
    A malicious online rumor costs a company millions. A political sideshow derails the national news cycle and destroys a candidate. Some product or celebrity zooms from total obscurity to viral sensation. What you don't know is that someone is responsible for all this. Usually, someone like me.I'm a media manipulator. In a world where blogs control and distort the news, my job is to control blogs--as much as any one person can. In today's culture... 1) Blogs like "Gawker," "Buzzfeed" and the "Huffington Post" drive the media agenda. 2) Bloggers are slaves to money, technology, and deadlines. 3) Manipulators wield these levers to shape everything you read, see and watch--online and off.Why am I giving away these secrets? Because I'm tired of a world where blogs take indirect bribes, marketers help write the news, reckless journalists spread lies, and no one is accountable for any of it. I'm pulling back the curtain because I don't want anyone else to get blindsided. I'm going to explain exactly how the media "really" works. What you choose to do with this information is up to you.

Alchemy: The Surprising Power of Ideas That Don't Make Sense


Rory Sutherland - 2019
    Wonderfully applicable to everything in life, and funny as hell.’ Nassim Nicholas TalebTo be brilliant, you have to be irrationalWhy is Red Bull so popular – even though everyone hates the taste? Why do countdown boards on platforms take away the pain of train delays? And why do we prefer stripy toothpaste?We think we are rational creatures. Economics and business rely on the assumption that we make logical decisions based on evidence.But we aren’t, and we don’t.In many crucial areas of our lives, reason plays a vanishingly small part. Instead we are driven by unconscious desires, which is why placebos are so powerful. We are drawn to the beautiful, the extravagant and the absurd – from lavish wedding invitations to tiny bottles of the latest fragrance. So if you want to influence people’s choices you have to bypass reason. The best ideas don’t make rational sense: they make you feel more than they make you think.Rory Sutherland is the Ogilvy advertising legend whose TED Talks have been viewed nearly 7 million times. In his first book he blends cutting-edge behavioural science, jaw-dropping stories and a touch of branding magic, on his mission to turn us all into idea alchemists. The big problems we face every day, whether as an individual or in society, could very well be solved by letting go of logic and embracing the irrational.

Naked Statistics: Stripping the Dread from the Data


Charles Wheelan - 2012
    How can we catch schools that cheat on standardized tests? How does Netflix know which movies you’ll like? What is causing the rising incidence of autism? As best-selling author Charles Wheelan shows us in Naked Statistics, the right data and a few well-chosen statistical tools can help us answer these questions and more.For those who slept through Stats 101, this book is a lifesaver. Wheelan strips away the arcane and technical details and focuses on the underlying intuition that drives statistical analysis. He clarifies key concepts such as inference, correlation, and regression analysis, reveals how biased or careless parties can manipulate or misrepresent data, and shows us how brilliant and creative researchers are exploiting the valuable data from natural experiments to tackle thorny questions.And in Wheelan’s trademark style, there’s not a dull page in sight. You’ll encounter clever Schlitz Beer marketers leveraging basic probability, an International Sausage Festival illuminating the tenets of the central limit theorem, and a head-scratching choice from the famous game show Let’s Make a Deal—and you’ll come away with insights each time. With the wit, accessibility, and sheer fun that turned Naked Economics into a bestseller, Wheelan defies the odds yet again by bringing another essential, formerly unglamorous discipline to life.