When the word “Pantometry” first appeared in English dictionaries in the 16th century it aligned with humans’ incessant need to count and number things. “Pantometry” meaning “universal measurement”, was later developed by economists as a way to further measure important traits in business using a specific set of indicators. We all know that facts and figures can not only confuse you, but they also fail to provide a context as the data still needs to be quantified before it is comprehendable. Pantometry allows us to explore the underlying context, or theory, behind the bare bones numbers we often see. But how does this translate to your business?
As mentioned, economists developed several indicators:
• Leading Indicators: anticipate the direction in which the economy is headed.
• Coincident Indicators: provide information about the current status of the economy.
• Lagging Indicators: change months after a downturn or upturn in the economy.
The development of these indicators may not predict the future, but they have no doubt expanded our knowledge of how an economy operates, and may even provide a clue as to where it is heading. Economists established the Fair Isaac Corporation (FICO) measurement, which technically is not a measurement and is driven by a theory of what specific characteristics in the economy can predict future behavior.
The FICO measurement, now commonly used to determine ones credit score, is comprised of weighted components that have been tested to have predictive capabilities:
• Payment history, 35%
• Amounts owed, 30%
• Length of credit history, 15%
• New credit, 10%
• Types of credit used, 10%
Let’s use Facebook and Instagram as an example: they discovered the best predictor of whether or not members would contribute to their site was if they saw their friends contributing content, allowing them to continue updating their algorithm to optimize the content seen. In the end, this keeps user percentages high as they are meeting the desires of their customer base.
With the right business advisor and financial guidance, Pantometry can project your business and advance growth. KBH partners with WealthCo to provide our clients tailored wealth planning, investment opportunities, and risk management through integrated wealth advisory teams. As we live in a volatile world, the last thing we want is for that volatility to be translated in your business. The solidity a WealthCo partnership provides you with trusted advisors through long term investment strategies that reflect your businesses goals, objectives and risk tolerance.
Contact us to find out how we can help: info@kbh.ca