By Daniel Schauber *
This is a popular corny joke among German engineers: Wer misst, misst Mist.
It is a pun and means: Who measures, measures bullshit. In German, the third person singular of the verb to measure and the noun bullshit sound exactly the same.
This measurement issue also applies to the Push-out Score, which determines the pressure on outgoing managers.
Pressure on CEOs who have not been fired openly can only be measured indirectly.
Which criteria are relevant? How are they to be weighted? And what exactly does the result mean?
The Push-out Score on a scale of 0 to 10 is based on nine criteria.
According to the model, a departure is highly likely to be forced if the age is unusual, the notice period is short, the tenure is brief, the share price is weak, the reasons for the change are non-transparent, the circumstances are adverse, succession problems arise and the announcement shows peculiarities in terms of form and language.
The Push-out Score thus measures the extent to which individual parameters deviate from values that are regarded as ideal for management changes.
Every measurement is flawed. This issue applies to temperature determination with mercury just as it does to humidity measurements with blond women’s hair.
Wer misst, misst Mist — and is still smarter than without measurement, as long as he or she knows how to interpret the result.
* The writer is the owner of the research firm exechange.