Lies, damned lies and confusion

A Watcher has kindly sought an explanation from BERL as to the apparent discrepancies between the Chron & Council's view of Wanganui's performance and the widely reported rankings referred to below. In the interests of accuracy, we reproduce it in its entirety below:

Note re absolute versus relative rankings

In generating ranking tables for Local Authorities, there is a choice in using ranks according to absolute performance indicators or using indicators that reflect performances relative to some external benchmark value.

The advantage of absolute performance indicators is that they are easy to understand. However, their disadvantage is they do not account well for the different mix of industries and businesses across the various areas. In addition, these indicators only capture performance over a single year and so have a relatively short-term focus.

The disadvantage of relative performance indicators is the lack of simplicity. However, their advantage is that they provide a more robust reflection of an area’s performance taking account of its mix of industry and business. The use of the 5-year average growth rate as the external benchmark also ensures a more medium term focus to the calculation. As such, relative indicators are more useful in monitoring economic development.

BERL calculates both sets of rankings, but prefers to use the relative ranking tables when reporting to clients with a view to monitoring economic development. However, some clients prefer to receive absolute rankings as they may have relied and/or reported on these in previous years.

BERL continue to caution against focusing primarily on rankings as indicators of performance. We advise that these rankings are no substitute for robust analysis of the detailed changes, trends and events across sectors. This type of analysis remains the focus of our reports on the economic performance of districts and regions.

All of which seems to support the view that statistics can be made to say anything you want them to say. However, Council quite clearly says "The BERL Report notes that Wanganui's economic growth in 2005 placed it third best out of 71 territorial authorities" - implying an absolute ranking. But the report about which the Diva boasts is one of relative ranking.

If you come third in the Mayoral Mile, only two people ran faster than you. That's an absolute ranking.

If you happen to be unfit, lame, and have never before moved further than it took to retrieve the TV remote, you may well come below the average time of most of your competitors but you can still claim to have been the third such unfit, lame etc person across the line. That's relative ranking. But please don't try to suggest you should be on the winners' dias.

Meanwhile...

Younger readers - you're being invited to be part of the WDC's Youth Committee. Since it's being overseen by Cr Sue Pepperell it may actually achieve something, so get the details here and then get in an application.

All readers - if you only follow one piece of advice from this blog, make this it. If you haven't already:

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Oh, by the way (5.40 pm): if Watchers who attended the Chron candidates' meeting care to leave their reviews in comments we (and the readers who didn't make it) would be most grateful indeed.