Scale Your Business With Data Episode 6:Why Measuring the Wrong Thing Can Destroy Your Business: Data Lessons from Vietnam to Modern Analytics.

On this episode of Scale Your Business With Data podcast, Graeme Crawford talks with Gurwinder Bhogal about the critical importance of measuring what truly matters in business and life. Drawing from historical examples like the McNamara Fallacy from the Vietnam War, they explore how focusing on easily quantifiable metrics while ignoring qualitative data can lead to catastrophic outcomes. The conversation delves into modern applications of data measurement, from social media metrics and sentiment analysis to health tracking devices, emphasizing the dangers of compound metrics like "sleep scores" and the value of specific, high-resolution measurements. Bhogal shares insights on Goodhart's Law, the importance of data storytelling, and why our brains are wired for narratives rather than raw numbers, making this essential listening for anyone using data to drive decision-making.

Chapter Timestamps:

0:00 - Sleep tracking critique

2:12 - Introduction to Gurwinder Bhogal

2:42 - The McNamara Fallacy explained

7:00 - Measuring sentiment in wartime

11:00 - Modern sentiment analysis evolution

14:00 - Stated vs revealed preferences

17:00 - Goodhart's Law discussion

18:00 - The Cobra Effect story

20:00 - Social media metrics gaming

23:00 - Twitter's influence paradox

28:00 - Health tracking compound metrics

31:00 - Exercise without metrics

33:00 - Identifiable victim effect

35:00 - Stories vs data retention