Tuesday, 22 of May of 2012

Category » Quantification

Vanity Sizing: Fashion & Beyond

How we position things greatly influences the outcome. In the April 7, 2012 edition of The Economist the article, “Dressing Up,” uncovers that women’s sizes have inflated by four sizes since the 1970’s. Unlike men’s sizing which is based on inches, women’s sizing is purely arbitrary and often varies by brand. Thus, depending on the size, a pair of women’s pants might have increased as much as four inches at the waist and three inches at the hips since then.

The generally accepted assumption for allowing this size inflation is that if consumers feel good about themselves they are likely to buy, thus why the fashion industry calls it “vanity sizing.” However, even though it seems like a topic to take lightly or with which to have fun, vanity sizing plays in all aspects of statistics. That is why it’s important to challenge definitions and assumptions in order to understand and solve problems.

For instance, the article “Botox and Beancounting” of the The Economist’s April 27, 2011 edition, discusses how official U.S. economic statistics might be overinflating its performance relative to Western European economies. Ironically, the article’s title makes an appropriate analogy to vanity sizing.

U.S. unemployment figures present another excellent example. They not only conflict with one another on occasions but they are difficult to figure. Additionally, their accounting changed in the 1980′s, making them appear lower than before.

Thus, while it’s commonly said that “numbers don’t lie,” that’s true; however, an ignoramus isn’t lying either if he believes his own ignorance. If we’re ignorant to numbers’ origination, we are more likely to accept them if they tell us our glass is half full rather than half empty, thus reinforcing our own perceptions . . . also known as “vanity believing.”

 


How Much Does a Kilogram Weigh?

House of Arbitrariness & Conditionality

We often view measurements as unchangeable. A meter is a meter, a pound a pound. We often forget that at some time someone somewhere declared what those were and that they would be a standard. The point is this: arbitrariness underlies almost all objective standards by which we live.

For example, in the January 29, 2011 edition of The Economist, the article, “The Constant Gardeners”, explores the kilogram. The official standard is a platinum-iridium alloy cast in 1879. However, today, its weight seems to vary from its copies by up to 69 micrograms, about half a grain of sand, an important variance when weighing small things. So, the question is this: How heavy is a kilogram . . . really?

The relevancy to problem solving is similar to that which I wrote in my post, “Arbitrariness: The Cornerstone of Conditions”:

By searching for the underlying arbitrary aspect of any apparently objective situation, we can often find the perspective – when altered – that can cause us to see that situation in a different light.

For example, when someone asks us, “What’s the best way to get from A to B?” we often give the fastest route. The assumption being that the “best way” is “fastest” when “best” could have many different attributes. Over time, the best-fastest link becomes the arbitrary point – when altered – that sheds a different light on what route might be best such as the most scenic one or the most fuel-efficient.

As a more sophisticated example, consider our reliance upon “proven outcomes.” What does that mean especially when you cannot scientifically prove that good leadership begets good results? Thus, when we look at what it took to be proven, we often find that it’s subjective based upon who is determining what “good leadership” and “good results” are.

 


The Seduction of Rankings

The Nature of RankingsEven though rankings are extremely subjective, they seduce us as strongly as the sirens did sailors in Greek mythology. Consequently, we often wreck ourselves on the rocky shores of fantasy island.

In order to understand the lure of rankings, we need to understand the lure of numbers. When we quantify something, it becomes easier to grasp. However, easier doesn’t mean that what we are grasping is real. It’s often easier to understand what we want to believe than it is to understand reality. For example, in reality a woman’s measurements don’t tell us much about her, but that doesn’t prevent them from triggering our fantasies.

Applying this illusionary power to rankings, they tap into our insecure desires for:

  1. Simplifying a complex world
  2. Defining limits to large or limitless knowledge pools
  3. Quantifying the unquantifiable
  4. Delivering certainty in an uncertain world

Rankings perform complex thought for us by determining which is better by deciphering many, many variables. They imply we can get by on much less knowledge by giving importance to the top ten rather than the top million or billion. Their parameters and measurements are subjectively determined, trying to measure something that normally is immeasurable. Finally, as implied above, the quantification inherent in rankings provides certainty; “these are the important ones and that’s it.”

For instance, consider these Google searches:

“Top 10” = 743 million results
“Top 100” = 1,083 million
“Top 1,000” = 46 million
“Top 10,000” = 17 million
“Top 100,000” = 2 million
“Top 1,000,000” = .6 million
“Top 1,000,000,000” = 5,250

Clearly, our focus is on the simple with limits; so, the problem is this: How are we going to ever appreciate the billions of unique people, places, creatures and things in this universe if we’re so focused on the top ten?

 


Entering the Golden Age of Women in Business

If you have a son and a daughter both under college age, odds are greater that she will become CEO of a Fortune 500 company. As I was writing my book, The Feminine Influence in Business (more), in 2003 and 2004, I made this prediction to friends:

Within the next generation or two, more women will be Fortune 500 CEO’s than men.

After eight years, I’m only concerned that I was too conservative. The recent appointment of Virginia Rometty as new CEO of IBM has prompted me to revisit this prediction. However, despite what articles such as “The End of Men” and “The Rise of Women in the Creative Class” say, I believe deeper, more fundamental forces are at work:

The nature of work that is remaining for humans to do falls more within the talents, attributes and skills of women than of men.

That is because technological advancements more easily replace the logical, rational functions of humans than the intuitive, relational ones. Since men tend to be more dominant in the former and women the latter, computers will more easily replace men than women.

In this blog, we already explored the need for more relational skills to manage a more creative, innovative and adaptive workforce. Moreover, as much as we try to systematize and quantify creativity and innovation, that only takes us so far. Many times we need intuition to fill in the gaps. There is a reason why we say, “woman’s intuition” rather than “man’s intuition.”

Yes, many other forces are at work such as more women receiving advanced degrees, more diverse family options and more women in the workforce. But, underneath it all is this current: technology is producing a workplace more favorable to women than to men.

 


When Does Optimism Become Pollyannaism?

In “Before You Make That Big Decision,” which appeared in the June 2011 Harvard Business Review, Daniel Kahneman, Dan Lovallo and Olivier Sibony* suggest that one way to overcome unconscious biases in decision making is that we ask the question: Is the base case [for the decision] overly optimistic? They make the point that:

  • “Most recommendations contain forecasts, which are notoriously prone to excessive optimism.”
  • “Groups with a successful track record are more prone to this bias than others . . . [especially if the] . . . team has been on a winning streak.”

However, in daily business life we often view those who try to rein in or express contrarian views as downers. As a result, in the desire to show who is less negative, a race to the top of optimism’s ladder begins and at some point becomes Pollyannaism.

Moreover, as we saw in the benefits of viewing a glass half-empty rather than half-full, the fear of being in an adverse situation can be a powerful motivator for taking action. Thus, a Pollyanna state could reduce a group to complacency. That means a team in the midst of success is less likely to change than one in the midst of crisis.

While clearly defining the demarcation zone between optimism and Pollyannaism is difficult, it once again highlights the failure of success and casts doubts on “nothing breeds success like success.” In fact, as the writers suggest, the best indicator that Pollyannaism might have infected a business culture is the degree of success it has been having.

After all, it’s kind of hard to reach a Pollyanna State if you’re not even in the State of Optimism.

*Olivier Sibony is a director in McKinsey’s Brussels office.

 


Emotional Self-defense for Sensitive People (Pt 5): Intimidation

One aspect of sensitivity that I find challenging to explain to sensitive people is their natural intimidation of other people.

As we saw in Part II about the unconscious, emotions are churning outside of our unawareness. This includes emotions related to our defense mechanisms that are frequently triggered when we meet people very different from us. However, on the surface we will often just rationalize these feelings as, “I don’t like that person because . . .”

Emotions, especially intense emotions, trigger defense mechanisms because they are very unpredictable. These emotions are the source of strong passions that move us to tackle situations when the odds are against us.

Since sensitive people often have many emotions, especially intense ones, flowing through them, it can be intimidating or, at minimum, frustrating to work with them. It’s intimidating because they are likely aware of something that we aren’t. It’s frustrating because simple man-made creations like logic, numbers, rationale and reasons can’t alter the innate nature of emotions.

For sensitive people, this means working covertly with the rest of us. Sharing some of their emotions with us can be awkward, humiliating and even dangerous because often they can’t be quantified, reasoned, proven or even verbalized. Since we aren’t aware of the emotions running through all of us on an unconscious level like they are, sensitive people will find working with us similar to a sighted person working with blind folks. How do they explain what they see to us? Moreover, once we even sense they can see things we can’t, our defense mechanism kicks in.

Thus, sensitive people need to be aware of their intimidating nature and of the fact that they are talking to very blind people from a situational awareness perspective.

Other posts in this series:

 


Smart Bombs & Twitter Clutter

Quality is a Human Job

Managing your Twitter account is like using smart bombs. No matter how smart the technology, you can never guarantee a good target unless a human evaluates it. In other words, you have to read tweets to determine who the good tweeters are; you can’t rely upon Twitter or the various Twitter-related applications to do it for you.

Consider that recently, I retweeted this tweet by Justin Harrison:

Cleaning up my twitter clutter for more effective and meaningful communication…been doing that a lot lately

To which I received this from Dr. Mitchell Friedman:

would love to hear your definition of Twitter clutter, and how you clean it up

So, let’s explore this.

Twitter clutter is the group of tweets you endure from followers just so you can increase your following. You follow them so they are encouraged to do likewise. Both benefit because your followers increase. Twitter creates this condition because size matters and because it has no good way of quantifying tweet quality, only tweet quantity.

How do you clean it up? Well, I use my lists. Everyone whom I follow goes on a list based upon tweet quality. I define good tweeters as people who are:

  • Causing me to stop and ponder
  • Making my life better
  • Promoting me or my ideas
  • Possessing personalities I want to see flourish
  • Being good friends
  • Puzzling because I don’t why I like them

Yes, some sites measure clout, but heck Satan has a lot of clout. How do they determine whether it’s good clout, bad clout, confusing clout, disruptive clout, nonsensical clout or any type of clout?

In the end, only a human can clean up Twitter clutter; qualitative assessment is a job for a human.

 


Statistical Subjectivity – The Essence of Rankings

I ran across a good article by Malcom Gladwell in the February 14 & 21 issue of The New Yorker titled, “The Order of Things.” The detail with which he explores rankings of colleges, hospitals and cars demonstrates the immense subjective potential rankings have. What is even more astounding is Gladwell’s discovery of the degree to which many organizations hold their leaders accountable for their place in these rankings.

From an intuitive perspective, people tend to have an emotional connection to statistics; they satisfy feelings for certainty, clarity and knowledgeableness. Thus, when we express arguments statistically, they tend to carry more weight than if we simply express them in words. Rankings clearly define for us what is best, better and good. However, they are more akin to magic where reality is but a trick. Thus, the feelings we receive from rankings (certainty, clarity, knowledgeableness) are satisfied because we want to believe their magic is real.

The Nature of RankingsAs a rule, unless the ranking is comparing very similar things against a single, measurable criterion, it is highly subjective. Therefore, here are some important questions to ask about the ranking to discover how its trick works:

  • Is it really comparing similar things?
  • Is the ranking based upon multiple criteria?
  • How important is each criterion and is it valid?
  • How does it weight the criteria?
  • Is it using some criteria as proxies for things that are difficult to quantify or research?
  • What important criteria are absent because of these difficulties?
  • Is the difference between one rank and each of those immediately above and below it that significant?
  • How accurate was the data collected for each criterion?
  • What problems might have retarded data quality?

Applying these questions will demonstrate that our affinity for rankings is more emotional than pragmatic.