A test to determine the amount of system noise.

You can run a noise audit to get a feel for how much noise there is in your business.

👉 How to:

Give different individuals the same task and have them give their judgment. Compare their judgment.

Or give the same individual the same inputs at different times and compare his or her responses.

When this was done with actual judicial judges we saw variations that were widely considered unacceptably varied. When this was done in an insurance firm. High ranking members of the first were asked to estimate variability on the judgments of their most seasoned employees. The average GUESS for the variability was 10%. The real variation Median was 46%. The insurance company estimated this variability cost them tens of millions each year.


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