*Summary: Intro | Measuring the importance of gossip | Too good to be true | Arbitrary measures produce arbitrary results | tl;dr*

*Disclaimer: The probability computation of the article is a recap of a talk delivered by Professor Mark Whitehorn at the University of Dundee in 2015, and at PASS Business Analytics Conference in San Jose, CA in 2014. Opinions expressed are my own.*

Aren’t we post-NPS hype yet? Such was my thinking until a random article came up on my feed: as one of its core objectives, a tech giant was planning to improve its Net Promoter Score by 2020. A quick internet search told me there are some companies very excited about increasing their NPS. Google Trends suggests the Net Promoter methodology is on the steady growth rate since 2004; a mortal blow to my presumption. There is something problematic about the Net Promoter methodology that I’d like to talk about: on one hand an indicator of an outstanding business delivery, on the other a possibly dangerous framework for workforce assessment. This article decomposes the NPS algorithm, reviews its criticism, and tests its validity from the probability perspective. I have based the scenario and the probability computation on an excellent talk delivered by professor Mark Whitehorn. **If you happen to be a manager, a person whose performance is scored with NPS, you are into probability computations, or simply you like debunking managerial fads then this is a tale for you. **

Continue reading “Taking down the NPS Score: KO by Probability”