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

by Douglas W. Hubbard

influence a decision of any significance, then

“intangibles”

There are two common understandings of the word “intangible.” It is routinely applied to things that are literally not tangible (i.e., not touchable, solid objects) yet are widely considered to be measurable. Things like time, budget, patent ownership, and so on are good examples of things that you cannot touch but yet are measured.

But the word “intangible” has also come to mean utterly immeasurable in any way at all, directly or indirectly. It is in this context that I argue that intangibles do not exist.

Management cares about measurements

perfect certainty is rarely a realistic option.

method to analyze

The biggest source of uncertainty would point toward a measurement that would reduce the uncertainty the most.

Fermi decomposition is not yet quite a measurement.

It is really more of an assessment of what you already know about a problem in such a way that it can get you in the ballpark.