Marginal Analysis

The Problem with Averages

02:44
Loading the player...

Watch: See how relying on broad averages can mask the reality of a business, making it difficult to see which specific activities are creating value and which are destroying it.

Apply: Review a report that uses a single “average” to track success and ask: “What are the best and worst performers contributing to this average?” Focus your next decision on improving a specific “marginal” area rather than trying to move the average as a whole.

Toogle Window

Order Now

Available anywhere books are sold