How to Measure ANYTHING The Analytical Process The analytical process • • • • • Think Decompose Simplify Specify Rethink THINK! Another way to say this: Think first, calculate second Some Hints What kind of a problem is it? Work backwards Search for analogies Lateral Thinking 1 Lateral Thinking 2 Lateral Thinking 3 Lateral Thinking 4 Working backward from the conclusion QuickTime™ and a decompressor are needed to see this picture. Working backward from the conclusion QuickTime™ and a decompressor are needed to see this picture. Working backward from the conclusion QuickTime™ and a decompressor are needed to see this picture. Working backward from the conclusion QuickTime™ and a decompressor are needed to see this picture. Decompose • Break the problem into manageable pieces • Map how the pieces fit together • Elements: Alternatives, Consequences, preferences • Identify the pieces you know how to handle (plug values) Simplify -- KISS • Critical focus: what really matters? • Map back, find shortest path to a conclusion (how much precision do you need?) - Theory (justified belief) - Evidence (warrants, and qualifications) Specify • Be precise about the elements • Specify your premises, assumptions, constructs • Model (draw a picture -- decision tree is a picture of a decision) Rethink • Test your conclusions - Flip problem elements around - Violate constraints and assumptions - Sensitivity and a fortiori (breakeven) analysis Let’s Play Save the World Global warming! Q&D ABC Global Warming • What is our first step? All choices presuppose forecasts • All forecasts are more or less uncertain - Relationships What happens if we do x to y Run backwards - SONs History helps H is just a sample of observations