When making decisions with several measures of success, it's common to combine them into one overall measure using a weighted average, which may cause an Imbalance Problem. This presentation describes a more general type of average to avoid the problem.
Presentation: Exponential Average
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When making decisions that involve a number of measures of success, it is common to combine the measures into a single overall measure using a weighted average. Unfortunately, this approach can lead to "optimal" decisions in which some capabilities are overdeveloped while others are neglected. This may be called the Imbalance Problem. This presentation describes a more general type of average, called the exponential average, which avoids this problem.