Categories
Measure Management Speech

Three of the five fastest runners were wearing our shoes: using the rules of speech to squeeze more information out of fewer words

Many years ago I saw an ad for a running shoe (maybe it was Reebok?) that said something like “At the New York Marathon, three of the five fastest runners were wearing our shoes.” I’m sure I’m not the first or last person to have realized that there’s more information there than it seems at first. For one thing, you can be sure that one of those three runners finished fifth: otherwise the ad would have said “three of the four fastest.” Also, it seems almost certain that the two fastest runners were not wearing the shoes, and indeed it probably wasn’t 1-3 or 2-3 either: “The two fastest” and “two of the three fastest” both seem better than “three of the top five.” The principle here is that if you’re trying to make the result sound as impressive as possible, an unintended consequence is that you’re revealing the upper limit.

The quote above, which came from Phil Price, a guest poster on Andrew Gelman’s must-read blog for statistics wonks, is an application of the pragmatics of speech. 

Categories
Measure Management What is Accounting

Measure Management, Effectiveness, and Morality

There’s an  interesting article in Strategic Finance about measure management and narrative reporting, based on research by Jeremy Bentley (a former doctoral student of mine).  It’s a great opportunity to clarify how moral accounting fits together with more traditional managerial accounting, particularly as I present it in What Counts and What Gets Counted–so also a great opportunity to introduce the Managerial Reporting course I’m about to start teaching in the EMBA Americas program this month.