Relevance vs rigor

• Scientic models should be practically relevan (Relevance) but use sophisticated scientific methods (Rigor)
• Reality is complex, models have to simplify
• Right balance is key

Principle of parsimony

Choose the simplest explanation that works

Conceptzualization of variables

It is hard to measure variables (sales -> easy, but other performances might be hard "creativity, team-climate" etc)