Comments on: Dangers of Forgetting the Proxy Nature of Data http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/ Management Improvement focused on Deming, lean thinking, innovation, customer focus, six sigma, etc. Wed, 08 Feb 2012 14:35:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tom Chwastyk http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/comment-page-1/#comment-32574 Tom Chwastyk Mon, 11 Aug 2008 20:43:16 +0000 http://management.curiouscatblog.net/?p=8#comment-32574 This reminds both of Goldratt's Theory of Constraints (managers often optimize to local goals like machine efficiencies while driving larger measures like plant profit down, because local measures are easier to see even if they're irrelevant) and my experience in complex experiments (only when we took carefully balanced overdetermined sensor data did we get warning when our conceptual response models were wrong, a surprising 30% of the time with very sophisticated modellers). This reminds both of Goldratt’s Theory of Constraints (managers often optimize to local goals like machine efficiencies while driving larger measures like plant profit down, because local measures are easier to see even if they’re irrelevant) and my experience in complex experiments (only when we took carefully balanced overdetermined sensor data did we get warning when our conceptual response models were wrong, a surprising 30% of the time with very sophisticated modellers).

]]> By: Transforming With Lean http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/comment-page-1/#comment-3587 Transforming With Lean Wed, 31 Jan 2007 19:15:31 +0000 http://management.curiouscatblog.net/?p=8#comment-3587 [...] but improving the numbers is not the aim, the numbers are merely proxies for that aim. [...] [...] but improving the numbers is not the aim, the numbers are merely proxies for that aim. [...]

]]> By: Curious Cat Management Improvement Blog » Information Quality http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/comment-page-1/#comment-351 Curious Cat Management Improvement Blog » Information Quality Wed, 01 Nov 2006 18:28:26 +0000 http://management.curiouscatblog.net/?p=8#comment-351 Fear often can lead to obfuscated, hidden and even faked data... Fear often can lead to obfuscated, hidden and even faked data…

]]> By: Curious Cat Science and Engineering Blog » USA Under-counting Engineering Graduates http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/comment-page-1/#comment-193 Curious Cat Science and Engineering Blog » USA Under-counting Engineering Graduates Mon, 04 Sep 2006 19:09:01 +0000 http://management.curiouscatblog.net/?p=8#comment-193 [...] How accurately the data reflects the situation is something that must always be considered: data is a proxy for something. All models are wrong, some are useful - George Box. [...] [...] How accurately the data reflects the situation is something that must always be considered: data is a proxy for something. All models are wrong, some are useful – George Box. [...]

]]> By: Curious Cat Management Improvement Blog » Blog Archive » Dangers of Extrinsic Motivation http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/comment-page-1/#comment-147 Curious Cat Management Improvement Blog » Blog Archive » Dangers of Extrinsic Motivation Thu, 10 Aug 2006 04:40:40 +0000 http://management.curiouscatblog.net/?p=8#comment-147 I’ve identified three major styles: two easy, dysfunctional styles and one hard, functional style... I’ve identified three major styles: two easy, dysfunctional styles and one hard, functional style…

]]> By: Curious Cat Management Improvement Blog » Blog Archive » Understanding Data http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/comment-page-1/#comment-43 Curious Cat Management Improvement Blog » Blog Archive » Understanding Data Sun, 18 Jun 2006 16:14:11 +0000 http://management.curiouscatblog.net/?p=8#comment-43 [...] To be effective you need to learn to think about not what is printed on the page but what lies behind the numbers you see. The numbers are just proxies for the real situation. Look beyond the numbers you see to what they mean and understand how the numbers presented may not fully capture the important details you need to consider. [...] [...] To be effective you need to learn to think about not what is printed on the page but what lies behind the numbers you see. The numbers are just proxies for the real situation. Look beyond the numbers you see to what they mean and understand how the numbers presented may not fully capture the important details you need to consider. [...]

]]> By: David Ranney http://management.curiouscatblog.net/2004/08/29/dangers-of-forgetting-proxy-nature-of-data/comment-page-1/#comment-2 David Ranney Mon, 30 Aug 2004 15:35:00 +0000 http://management.curiouscatblog.net/?p=8#comment-2 This phenomenon appears in many different ways. Companies rise and fall based on "numbers." It's not uncommon for companies to hire contractors over regular employees in order to increase their profit to employee ratio, even if contractors cost more money. A contractor is not technically an employee, it makes the statistic look better, and that's what's seen as important. Theoretically you could establish well thought out metrics for a company's performance which resist that kind of tampering, but nobody within the financial community seems terribly interested in doing so. This phenomenon appears in many different ways. Companies rise and fall based on “numbers.” It’s not uncommon for companies to hire contractors over regular employees in order to increase their profit to employee ratio, even if contractors cost more money. A contractor is not technically an employee, it makes the statistic look better, and that’s what’s seen as important.

Theoretically you could establish well thought out metrics for a company’s performance which resist that kind of tampering, but nobody within the financial community seems terribly interested in doing so.

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