Data Core · Performance Analysis · Module

Method

How the question will be answered, and whether that method can actually answer it — because most business questions are causal and most available methods are not.

The idea

How it works

A causal question asked of observational data can be answered only under assumptions that are usually false and rarely stated. Naming the assumptions is what separates a careful analysis from a confident one.

Where the question genuinely matters and the data cannot support it, designing a small experiment is frequently cheaper than a large analysis that will not settle anything.

Working with it

In practice

  1. 01

    Match the method to the question type

    Descriptive, comparative or causal. Only the third requires an experiment or a careful identification argument.

  2. 02

    Write down the assumptions

    What has to be true for the method to answer the question. This is where most analyses quietly fail.

  3. 03

    Consider an experiment

    For questions that recur and matter, a small test settles what a large analysis will only illuminate.

  4. 04

    Say what the method cannot do

    Before running it, so the limitation is part of the design rather than a caveat at the end.

One level in

The components of method

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The approach

    How the question will be answered.

    Learn
  2. The assumptions

    What has to be true for the method to work.

    Learn
  3. The limits

    What this method cannot establish, stated before it runs.

    Learn

For questions that recur and matter, a small experiment settles what a large analysis will only illuminate.