How To Measure Anything Finding The Value Of Intangibles

How To Measure Anything Finding The Value Of Intangibles

How To Measure Anything Finding The Value Of Intangibles – In business and decision-making, the value of intangible assets and outcomes can be challenging to measure. However, as the saying goes, ‘You can’t manage what you can’t measure.’ This is where the concept of ‘How to Measure Anything’ (HTMA) comes into play. HTMA is a methodology developed by Douglas W. Hubbard, outlined in his book of the same name, that provides practical approaches to measuring seemingly immeasurable things. In this article, we’ll explore the key principles of HTMA and how you can apply them to find the value of intangibles in your organization.

Define What You Want to Measure

The first step in measuring anything is to clearly define what you want to measure. This involves identifying the specific outcome or attribute you are interested in and articulating it in precise and measurable terms. For example, if you want to measure the ‘effectiveness of a training program,’ you might define it as ‘the percentage improvement in performance metrics after completing the training.’

Identify a Measurement Method

Once you have defined what you want to measure, the next step is to identify a measurement method that is practical, cost-effective, and reliable. This could involve using existing data sources, conducting surveys or interviews, or employing quantitative modeling techniques. The key is to choose a method that will provide the most accurate and relevant information given the resources available.

Determine the Measurement Scale

The measurement scale defines the range and granularity of the measurements you will use. This could be a simple binary scale (e.g., ‘yes’ or ‘no’), a Likert scale (e.g., ‘strongly agree’ to ‘strongly disagree’), or a numerical scale (e.g., 1 to 10). The scale should be appropriate for the attribute being measured and should allow for meaningful comparisons and analysis.

Collect Data and Analyze Results

Once you have defined your measurement method and scale, the next step is to collect data and analyze the results. This may involve gathering data from multiple sources, conducting surveys or experiments, or using statistical analysis techniques. The goal is to obtain reliable and valid data that can be used to draw meaningful conclusions about the value of the intangible asset or outcome.

Communicate and Act on the Results

Finally, it’s important to communicate the results of your measurements effectively and take action based on those results. This may involve presenting your findings to stakeholders, making decisions based on the data, and implementing changes or improvements based on the insights gained. The key is to use the measurement results to inform and improve decision-making processes.

Example

For example, let’s say a company wants to measure the ‘effectiveness of its marketing campaigns’ in terms of brand awareness. They could define this as ‘the percentage increase in brand recognition among target customers after running a marketing campaign.’ They could then use surveys or focus groups to gather data on brand recognition before and after the campaign and analyze the results to determine the campaign’s effectiveness.

Measuring intangible assets and outcomes is challenging but essential for effective decision-making. By following the principles of How to Measure Anything, you can develop practical approaches to measuring and evaluating intangibles in your organization. By defining what you want to measure, identifying measurement methods, determining measurement scales, collecting and analyzing data, and acting on the results, you can uncover valuable insights and drive meaningful improvements in your organization.