Encyclopedia of Managerial Techniques

Statistical Success Fallacy (SSF)

(Data Interpretation / Business Analytics Pitfalls)

A management error in which statistical improvements are mistaken for real business progress, even when they do not reflect actual success. This technique thrives in organizations that reward the manipulation of metrics rather than genuine achievement.

Examples from practice

A hospital reducing patient wait times by shortening doctor consultations rather than improving care; an e-commerce site increasing "engagement" by forcing users to click through multiple pages.

Advantages

Allows for objective comparisons; creates measurable goals.

Disadvantages

Leads to misleading conclusions; incentivizes metric manipulation.

See also