Category: Indicator management

  • Empirical support for Blue Line Management

    Jilian Popadak is a PhD student at Wharton. Employing an interesting and innovative research design, she has produced a working paper (link is here) which tests one of the cornerstones of the blue-line argument: namely, that companies that focus management efforts on indicators (the red line) and not on intrinsic value (the blue line) will […]

  • Red line management — Cancer treatment version

    According to Sky News: A hospital trust could face a police investigation over allegations staff were “pressured or bullied” into falsifying data relating to cancer patients. A number of cancer patients suffered “undue delays” at Colchester Hospital University NHS Foundation Trust, the Care Quality Commission (CQC) said. CQC inspectors found that there were “inaccuracies” with […]

  • The uses and misuses of Heisenberg’s uncertainty principal

    In The Blue Line Imperative, we explain the inherent measurement problems by citing Goodhart’s Law, which is an economics analog to Heisenberg’s famous uncertainly principle. The idea is that by measuring a system, whether electrons in orbit or operating margin for a business division or anything else for that matter, we disturb it. Therefore, the […]

  • Indicator management rears its ugly head, again …

    Two nurses in Staffordshire (England) are under investigation for having misreported waiting times in their hospital’s emergency room. For example, to get patients out of the waiting room (and therefore classify them as having been served), the nurses would transfer them to rooms that were not ready to receive patients. Their motivation appears to have […]