Performance Perspectives Blog

“Men have had recourse to many calculations”

by | Jul 18, 2010

The sources of inspiration for blog pieces seems almost infinite. Today, while reading the bible, I found the above quote (it’s from the book of Ecclesiastes, Chapter 7, verse 29). Men (and women), in general, obviously have many calculations to draw upon; and even we in performance measurement have many: the challenge is to decide which ones apply!

I guess that’s the beauty of what we do, as it provides us with flexibility and options.

The problems arise when individuals use erroneous calculations or use them in a manner that is inappropriate. And some firms have been known to derive their own calculations, even though there are plenty good ones already available: and unfortunately, sometimes the ones they derive are flawed!

We will always have debates about the various approaches (e.g., geometric vs. arithmetic, transaction-based vs. holdings-based), but that’s fine. “Variety’s the spice of life,” yes?

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