Transforming raw data into composite indices, measures, and scales to summarize complex, multi-dimensional realities for enhanced insight, data analysis, and predictive modeling.
Indicators are used in many areas of economic, social, and environmental statistics as a useful way to summarize and present information. Indicators range from simple, single-variable data points to more complex composite indicators that bring together information from a number of different sources into one aggregate value. Composite indicators, such as indices and scales, have gained growing popularity in a wide variety of research areas as a way of measuring complex societal issues (e.g. “well-being” or “competitiveness”). Bâton Global (B|G) has experience constructing composite indices and scales in order to summarize complex, multi-dimensional realities. By transforming raw data into quantifiable concepts, we enable our clients to achieve their research objectives.
In a world where everything is measured, compared, benchmarked, and mapped, decision-makers demand data to argue their case, build their strategies, or monitor their peers. When trying to summarize complex or multi-dimensional issues, common challenges leaders encounter may include:
A single indicator cannot capture the phenomena that needs to be measured.
A long list of separate indicators makes it difficult to compare complex issues across social groups.
A long list of separate indicators makes it difficult to identify trends over time.
B|G provides clients with the analytical foundation to address complex business and strategy issues. We employ the latest research methodologies and analytic techniques to develop and validate customized solutions that help our clients understand complex phenomena. Our approach is outlined in three steps:
The first step in the construction of composite indicators is understanding the theoretical underpinning of the project. Interviews with key project stakeholders are conducted to establish a base understanding and clarify the purpose of the index or scale. Secondary research then allows us to evaluate existing definitions of the phenomena to be measured, identify dimensions and elements relevant to the concept, and develop a final accepted definition of the construct.
Once a validated definition of the phenomenon has been established, we determine what variables are needed to measure the phenomenon. This involves gathering existing sources of data and evaluating them for data availability and quality and selecting analytically sound, relevant indicators for each dimension. We then transform the raw data into composite indices and scales, addressing issues of missing data, normalization of data, robustness and sensitivity, weighting, and validation.
Findings from the composite indicator results are analyzed and presented in a visual format, making it easy to uncover patterns, trends, and relationships. By integrating large amounts of information into easily understood formats, we provide our clients with transparent and objective results that are used to uncover meaningful insights that drive strategy development.
Clients have used our customized indices, scales, and metrics to:
We really appreciated the level of detail and accountability the team demonstrated on the project.