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Goodhart's Law
Goodhart's law is an adage often stated as, "When a measure becomes a target, it ceases to be a good measure". It is named after British economist Charles Goodhart, who is credited with expressing the core idea of the adage in a 1975 article on monetary policy in the United Kingdom: It was used to criticize the British Thatcher government for trying to conduct monetary policy on the basis of targets for broad and narrow money, but the law reflects a much more general phenomenon. Priority and background Numerous concepts are related to this idea, at least one of which predates Goodhart's statement. Notably, Campbell's law likely has precedence, as Jeff Rodamar has argued, since various formulations date to 1969. Other academics had similar insights at the time. Jerome Ravetz's 1971 book ''Scientific Knowledge and Its Social Problems'' also predates Goodhart, though it does not formulate the same law. He discusses how systems in general can be gamed, focuses on cases where the goa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Charles Goodhart Delives The 2012 Long Finance Conference Keynote Speech
Charles is a masculine given name predominantly found in English and French speaking countries. It is from the French form ''Charles'' of the Proto-Germanic name (in runic alphabet) or ''*karilaz'' (in Latin alphabet), whose meaning was "free man". The Old English descendant of this word was '' Ċearl'' or ''Ċeorl'', as the name of King Cearl of Mercia, that disappeared after the Norman conquest of England. The name was notably borne by Charlemagne (Charles the Great), and was at the time Latinized as ''Karolus'' (as in ''Vita Karoli Magni''), later also as '' Carolus''. Some Germanic languages, for example Dutch and German, have retained the word in two separate senses. In the particular case of Dutch, ''Karel'' refers to the given name, whereas the noun ''kerel'' means "a bloke, fellow, man". Etymology The name's etymology is a Common Germanic noun ''*karilaz'' meaning "free man", which survives in English as churl (< Old English ''ċeorl''), which developed its de ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marilyn Strathern
Dame Ann Marilyn Strathern, Dame Commander of the Most Excellent Order of the British Empire, DBE, Fellow of the British Academy, FBA (née Evans; born 6 March 1941) is a Great Britain, British anthropology, anthropologist, who has worked largely with the Mount Hagen people of Papua New Guinea and dealt with issues in the United Kingdom, UK of reproductive technologies.Video Recording of Marilyn Strathern by Alan Macfarlane 6 May 2009. She was William Wyse Professor of Social Anthropology at the University of Cambridge from 1993 to 2008, and Master (college), Mistress of Girton College, Cambridge from 1998 to 2009. Early life Marilyn Strathern was born to Eric Evans and Joyce Evans in North Wales on 6 March 1941.[...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Adages
An adage (; Latin: adagium) is a memorable and usually philosophical aphorism that communicates an important truth derived from experience, custom, or both, and that many people consider true and credible because of its longeval tradition, i.e. being handed down generation to generation, or memetic replication. Variations and nature An adage may warn against a failure to plan, be interesting observations, ethical rules, or skeptical comments on life in general, such as "do not count your chickens before they hatch", "do not burn your bridges", and . Some adages are products of folk wisdom that attempt to summarize a basic truth; these are generally known as "proverbs" or "bywords". An adage that describes a general moral rule is a "maxim". A pithy expression that has not necessarily gained credibility by tradition, but is distinguished by especial depth or excellent style is denominated an "aphorism", while one distinguished by wit or irony is often denominated an "epigram ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1975 In Economics
It was also declared the ''International Women's Year'' by the United Nations and the European Architectural Heritage Year by the Council of Europe. Events January * January 1 - Watergate scandal (United States): John N. Mitchell, H. R. Haldeman and John Ehrlichman are found guilty of the Watergate cover-up. * January 2 ** The Federal Rules of Evidence are approved by the United States Congress. ** Bangladesh revolutionary leader Siraj Sikder is killed by police while in custody. ** A bomb blast at Samastipur, Bihar, India, fatally wounds Lalit Narayan Mishra, Minister of Railways. * January 5 – Tasman Bridge disaster: The Tasman Bridge in Hobart, Tasmania, Australia, is struck by the bulk ore carrier , killing 12 people. * January 7 – OPEC agrees to raise crude oil prices by 10%. * January 10–February 9 – The flight of ''Soyuz 17'' with the crew of Georgy Grechko and Aleksei Gubarev aboard the ''Salyut 4'' space station. * January 15 – Alvor Agreement: Portugal an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Metric Fixation
Metric fixation refers to a tendency for decision-makers to place excessively large emphases on selected metrics. In management (and many other social science fields), decision makers typically use metrics to measure how well a person or an organization attain desired goal(s). E.g., a company might use "the number of new customers gained" as a metric to evaluate the success of a marketing campaign. The issue of metric fixation is said to arise if the decision maker(s) focus excessively on the metrics, often to the point that they treat "attaining desired values on the metrics" as a core goal (instead of simply an indicator of successes). For example, a school may want to improve the number of students who pass a certain test (metric = "number of students who pass"). This is based on the assumption that the said test truly can evaluate students' ability to succeed in the real world (assuming there already is a good definition of what "success" means). If the said test fails to evaluat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Surrogation
Surrogation is a psychological phenomenon found in business practices whereby a measure of a construct of interest evolves to replace that construct. Research on performance measurement in management accounting identifies surrogation with "the tendency for managers to lose sight of the strategic construct(s) the measures are intended to represent, and subsequently act as though the measures ''are'' the constructs". An everyday example of surrogation is a manager tasked with increasing customer satisfaction who begins to believe that the customer satisfaction survey score actually '' is'' customer satisfaction. First usage Inspired by work by Yuji Ijiri, the term ''surrogation'' was coined by Willie Choi, Gary Hecht, and Bill Tayler in their paper, "Lost in Translation: The Effects of Incentive Compensation on Strategy Surrogation". They show managers tend to use measures as surrogates for strategy, acting as if measures were in fact the strategy when making optimization decisions. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reification (fallacy)
Reification (also known as concretism, hypostatization, or the fallacy of misplaced concreteness) is a fallacy of ambiguity, when an abstraction (abstract belief or hypothetical construct) is treated as if it were a concrete real event or physical entity. In other words, it is the error of treating something that is not concrete, such as an idea, as a concrete thing. A common case of reification is the confusion of a model with reality: " the map is not the territory". Reification is part of normal usage of natural language (just like metonymy for instance), as well as of literature, where a reified abstraction is intended as a figure of speech, and actually understood as such. But the use of reification in logical reasoning or rhetoric is misleading and usually regarded as a fallacy. Etymology From Latin ''res'' ("thing") and -''fication'', a suffix related to ''facere'' ("to make"). Thus ''reification'' can be loosely translated as "thing-making"; the turning of something abstra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reflexivity (social Theory)
In epistemology, and more specifically, the sociology of knowledge, reflexivity refers to circular relationships between cause and effect, especially as embedded in human belief structures. A reflexive relationship is bidirectional with both the cause and the effect affecting one another in a relationship in which neither can be assigned as causes or effects. Within sociology more broadly—the field of origin—reflexivity means an act of self-reference where examination or action "bends back on", refers to, and affects the entity instigating the action or examination. It commonly refers to the capacity of an agent to recognise forces of socialisation and alter their place in the social structure. A low level of reflexivity would result in individuals shaped largely by their environment (or "society"). A high level of social reflexivity would be defined by individuals shaping ''their own'' norms, tastes, politics, desires, and so on. This is similar to the notion of autonomy. ( ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Overfitting
mathematical modeling, overfitting is "the production of an analysis that corresponds too closely or exactly to a particular set of data, and may therefore fail to fit to additional data or predict future observations reliably". An overfitted model is a mathematical model that contains more parameters than can be justified by the data. The essence of overfitting is to have unknowingly extracted some of the residual variation (i.e., the noise) as if that variation represented underlying model structure. Underfitting occurs when a mathematical model cannot adequately capture the underlying structure of the data. An under-fitted model is a model where some parameters or terms that would appear in a correctly specified model are missing. Under-fitting would occur, for example, when fitting a linear model to non-linear data. Such a model will tend to have poor predictive performance. The possibility of over-fitting exists because the criterion used for selecting the model is no ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Performance Metric
A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity (such as projects, programs, products and other initiatives) in which it engages. KPIs provide a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most. Often success is simply the repeated, periodic achievement of some levels of operational goal (e.g. zero defects, 10/10 customer satisfaction), and sometimes success is defined in terms of making progress toward strategic goals. Accordingly, choosing the right KPIs relies upon a good understanding of what is important to the organization. What is deemed important often depends on the department measuring the performance – e.g. the KPIs useful to finance will differ from the KPIs assigned to sales. Since there is a need to understand well what is important, various techniques ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
McNamara Fallacy
The McNamara fallacy (also known as the quantitative fallacy), named for Robert McNamara, the US Secretary of Defense from 1961 to 1968, involves making a decision based solely on quantitative observations (or metrics) and ignoring all others. The reason given is often that these other observations cannot be proven. The fallacy refers to McNamara's belief as to what led the United States to defeat in the Vietnam War—specifically, his quantification of success in the war (e.g., in terms of enemy body count), ignoring other variables. Examples in warfare The Vietnam War The McNamara fallacy originates from the Vietnam War, in which enemy body counts were taken to be a precise and objective measure of success. War was reduced to a mathematical model: By increasing estimated enemy deaths and minimizing one's own, victory was assured. Critics note that guerrilla warfare, widespread resistance, and inevitable inaccuracies in estimates of enemy casualties can thwart this formula ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gaming The System
Gaming the system (also rigging, abusing, cheating, milking, playing, working, or breaking the system, or gaming or bending the rules) can be defined as using the rules and procedures meant to protect a system to, instead, Psychological manipulation, manipulate the system for a desired outcome. According to James Rieley, a British advisor to CEOs and an author, structures in companies and organizations (both explicit and implicit policies and procedures, stated goals, and mental models) drive behaviors that are detrimental to long-term organizational success and stifle competition. For some, error is the essence of gaming the system, in which a gap in protocol allows for errant practices that lead to unintended results. Although the term generally carries negative connotations, gaming the system can be used for benign purposes in the undermining and dismantling of corrupt or oppressive organisations. History The first known documented use of the term "gaming the system" is in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
