Performance Analysis · The question · Component
The precision needed
How accurate the answer has to be to be useful — because precision beyond the decision requirement is expense with no return.
The deliverable
What it is
Most business decisions need a direction rather than an estimate. Establishing which of two options is better rarely requires knowing by how much.
The instinct to keep refining is strong and is where analytical time disappears. A stopping rule set in advance prevents it.
One level in
What it is made of
Each element is a constituent part of the component. Follow one to see the attributes it carries.
The requirement
What accuracy the decision actually needs.
3 attributes: Required · Tolerance · Reason
LearnThe method fit
Whether the chosen method delivers that and no more.
3 attributes: Method · Precision delivered · Proportionate
LearnThe stopping rule
When the analysis is finished.
3 attributes: Stopping condition · Effort budget · Reached
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Most business decisions need a direction, not an estimate. Knowing by how much is usually optional.
The other components in the question
The decision
What will be decided on the basis of the answer — because analysis with no decision attached is exploration.
LearnThe changing answer
What result would change the decision, and in which direction — the sharpest scoping question available.
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