Friday, December 4, 2015

Metrics; why Ratios are not always Rational

Here are 16 minutes you definately do not want to miss.

Clayton Christensen takes you on a journey to explain why the interest rates on eg our homes are so low. And indicates why the reason for them to be low should make us worried.

It starts of with a classification of innovation into three classes. Then hops into metrics and how we mesure things. Finally ending in the connection to the interest rates, after a brief detour over to Japan.

There's a lot of take-aways in here. But the importance of metrics, and how we measure things, is central.

It is rare to find a very complex line of reasoning presented in a very understandable way. It is even rarer to find a few of the simple rules that guides the behaviour of a complex system neatly identified and presented, in a way that makes the connection almost obvious.