The problem with composite indicators.

Abstract

Bundling individual quality measures into composite indicators is now a widespread practice, but is prone to multiple problems. They include lack of transparency in reporting, use of flawed methodological approaches, weaknesses in how measures are standardised and combined, and failure to describe statistical uncertainty of scores or rankings. Often, these problems make it difficult or impossible to understand what a composite indicator actually measures. Consequently, comparing organisations on what appears to be the same basket of quality indicators is rarely straightforward. Efforts to improve the transparency, scientific grounding and practical usefulness of composite indicators are much needed.