We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Are Quantitative Business Methods?

By C. Mitchell
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Quantitative business methods are processes and algorithms used to help corporate managers and executives make decisions and predict outcomes. They are purely numbers-driven. Quantitative business methods do not account for individual employee capabilities or any soft calculations that vary based on departmental performance or personnel. Rather, they are founded on the belief that hard-line statistics and economic theories are the best predictors of business success.

One of the main goals of quantitative business methods is to find a way to make corporations more efficient using principles of economics and mathematical strategy. It is a way of giving numeric value to human output and determining the best calculation to reach a desired answer. The methods are usually optimized and tweaked depending on a company’s size and industry, but generally involve information gathering, data interpretation, and translation of numeric patterns into workplace strategies.

Managers must engage in a lot of numbers-gathering in order to properly apply quantitative business methods to their company or department. A lot of the relevant numbers come from business surveys and questionnaires collected across business sectors. Results must be assigned a numeric value, weighted against each other, and given some sort of analytical value.

One of the key parts of many companies’ quantitative methods involves a process known as “quantitative feedback theory.” This theory is an economic concept that tries to conceptualize the trade-offs needed to reach a specific result. It uses known patterns from the past to project likely outcomes well into the future using experimental measurements and a “loop” feedback model.

There is little that is simple about quantitative business methods. When done properly, all of the required statistical analysis and reporting survey data can lead to great business developments. Getting there often takes a lot of effort, however.

The overall complexity and time required to properly implement quantitative business methods is one of the main reasons managers either neglect the models or use them inconsistently. Many argue that the time spent analyzing questionnaires and drawing up calculations to discern management strategies could be better spent actually doing that managing more qualitatively. It is often difficult for managers to see the payoff, as well, which also hampers implementation efforts.

In practice, economists and business analysts spend more time studying quantitative business methods than do full-time managers or acting business executives. Businesses that are interested in finding more efficient ways of conducting sales, organizing people, or streamlining processes often choose to hire an outside expert rather than requiring the work from their own employees. Companies can implement the methods, then, without actually having to discover them independently.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.