Even if you have always hated maths, you can get a lot out of numbers for your business. But using figures also has risks. Because when you make a business decision based on numbers, do you always know the source and the research method? Sanne Blauw, econometrician and author of The best-selling book ever*, takes us through the pitfalls. And she shows us that you don't have to be a mathematician to be good with numbers.
The best-selling book ever is deliberately written with an asterisk, as the accompanying footnote: 'with this title', is essential for the reliability of this claim. This is exactly what Sanne Blauw wants to make us aware of: "It pains me to see how often things go wrong, sometimes consciously and sometimes unconsciously. People often allow themselves to be fooled by figures that are actually not correct".
What to look out for
Sanne emphasises your own responsibility as a user of figures. "You should always check the source and the way the research has been done. She cites the example of a poll on Twitter. On the face of it, there may be nothing wrong with that, until you consider that Twitter contains a specific group of people. Such a poll is then quickly coloured by the one-sided target group.
Consider underlying interests
Also think about the messenger of the figures you have in front of you, Sanne emphasises. Be aware that the messenger of the figures may have a particular interest. This interest could well have a major impact on the way the figures are presented. On the other hand, you can also be critical of yourself. Even as a recipient, you often have an interest in a certain interpretation. Be aware of your own bias.
Figures in your business
Together with Wendy van Ierschot, Sanne also dwells on Goodhart's law. Steering by numbers ensures that people have incentives to manipulate those numbers', she explains. So figures can give your employees the wrong incentive.
Links
Read more about Sanne Blauw here:
Sanne Blauw and The Correspondent
https://decorrespondent.nl/sanneblauw
The best-selling book ever (with this title) now available in thirteen languages.
Article about Goodhart's Law (discussed in the podcast)
https://www.fondsnieuws.nl/columns/hans-betlem/de-wet-van-goodhart
Contact
Do you have questions or input? Please contact Wendy van Ierschot at wendy@viepeople.com.
mailto: wendy@viepeople.com
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