Professional Documents
Culture Documents
Consider this hypothetical situation. You pay and relying on personal experience or the
a visit to a dietitian after gaining a bit of popular ideas of management gurus is daily
weight over the holiday season. The dietitian practice. Yet managerial decisions affect the
advises you to try diet X. It’s very expensive working lives and well-being of people
and demands a radical change in lifestyle, around the world. As Henry Mintzberg said:
but the prospect of having a slim and healthy
body motivates you to stick to the diet. After ‘No job is more vital to our society than that
a few weeks, however, you have gained five of a manager. It is the manager who
pounds and suffer serious side effects that determines whether our social institutions
require medical treatment. After searching serve us well or whether they squander our
the Internet, you learn that most scientific talents and resources.’ 2
studies find diet X to be ineffective and
fraught with such side effects. When you In this paper we will explain what evidence-
confront the diet consultant with these based practice is and how it can help you
findings, he replies, ‘Why should I pay and your organization make better
attention to scientific studies? I have 20 decisions. Whether we work in a bank,
years of experience. Besides, the diet was hospital, large consulting firm or small
developed by a famous American startup, as practitioners affecting the lives of
nutritionist, whose book sold more than a so many, we have a moral obligation to use
1
million copies.’ the best available evidence when making a
decision. We can do this by learning how to
Does that sound like malpractice? It distinguish science from folklore, data from
probably does. Unfortunately, in assertions, and evidence from beliefs,
management, disregarding sound evidence anecdotes or personal opinions.
1. WHAT IS EVIDENCE-BASED
PRACTICE?
The basic idea of evidence-based practice the way decisions are made. It is an
is that good-quality decisions should be approach to decision-making and day-to-
based on a combination of critical thinking day work practice that helps practitioners to
and the best available evidence. Although critically evaluate the extent to which they
all management practitioners use evidence can trust the evidence they have at hand. It
in their decisions, many pay little attention also helps practitioners to identify, find and
to the quality of that evidence. The result is evaluate additional evidence relevant to
bad decisions based on unfounded beliefs, their decisions.
fads and ideas popularised by
management gurus. The bottom line is bad In this paper we use the following definition
decisions, poor outcomes, and limited of evidence-based practice 3, which also
understanding of why things go wrong. describes the main skills required to
Evidence-based practice seeks to improve practice in an evidence-based way:
Case example
An American IT company believed for years that technical expertise was the most
important management capability. They thought that the best managers were those who left
their staff to work independently and intervened only when people got stuck with a
technical problem. However, when the company asked employees what they valued most
in a manager, technical expertise ranked last. More valuable attributes were asking good
questions, taking time to meet and caring about employees’ careers and lives. Managers
who did these things led top-performing teams and had the happiest employees and the
lowest turnover of staff. These attributes of effective managers are well established in
scientific studies, so the company’s improvement efforts could have been put in place
years earlier.1
4. WHAT SOURCES OF
EVIDENCE SHOULD BE
CONSIDERED?
Case example
The board of directors of a large Canadian law firm had plans for a merger with a smaller
firm nearby. The merger’s objective was to integrate the back office of the two firms (IT,
finance, facilities, etc) in order to create economies of scale. The front offices and legal
practices of the two firms were to remain separate. The board was told by the partners that
the organizational cultures of the two firms differ widely, so the board wanted to know
whether this would create problems for the merger. Partners of both firms were asked
independently about their experience with mergers. Those who had been involved in one
ore more mergers stated that cultural differences mattered and could cause serious culture
clashes between professionals.
Case example
The board of a large insurance company has plans to change its structure from a regionally
focused one to a product-based one. According to the board, the restructuring will improve
the company’s market presence and drive greater customer focus. The company’s sales
managers strongly disagree with this change, arguing that ditching the regional structure
will make it harder to build good relationships with customers and will therefore harm
customer service.
Case example
A university hospital decided to ask its nurses to compile personal development plans. These plans
were to include a statement of the nurse’s aspirations and career priorities. The HR director
pointed out that according to Maslow’s hierarchy of needs (a well-known theory about
motivations) basic levels of needs (such as health and safety) must be met before an individual can
focus on his or her higher-level needs (such as career and professional development). The nurses
at the emergency department were increasingly exposed to serious safety hazards, including
physical violence. The HR director therefore recommended excluding these nurses from the
program until the safety hazards had been substantially reduced.
Case example
To assess employees’ satisfaction with their supervisors, a telecommunications company conducted
a survey among its 12,500 employees. The survey contained some demographic questions such as
postcode, date of birth and job title, and five questions on employee satisfaction with their
immediate supervisor. The introductory letter by the CEO stated that all answers would remain
anonymous. After the survey was sent out, only 582 employees responded, a response rate of less
than 5%.
Evidence is never perfect and can be may wonder how many times he/she has
misleading in many different ways. It may experienced that issue and whether the
be that the evidence is over-stated such situations were comparable. For example,
that a seemingly strong claim turns out to if a colleague proposes a solution to high
be based on a single and not particularly levels of staff absenteeism, but his/her
reliable piece of information. A colleague’s experience relates to only one previous
confident opinion regarding the instance, and that was among migrant
effectiveness of a practice might turn out to workers picking fruit, then it would not
be based on little more than an anecdote. have much to teach you about dealing with
A long-standing way of doing things in an absenteeism of orthopedic surgeons in a
organization may actually never have been hospital. Similar questions need to be
evaluated to see whether it worked or not. asked about evidence from the
All evidence should be critically appraised organization such as sales figures, error
by carefully and systematically assessing rates or cash flow. How were these figures
its trustworthiness and relevance. calculated? Are they accurate? Are they
reliable? In the case of evidence from the
Although how a piece of evidence is scientific literature we would ask questions
evaluated can differ slightly depending on about how the study was designed. How
its source, critical appraisal always involves were the data collected? How was the
asking the same basic questions. Where outcome measured? To what extent are
and how is the evidence gathered? Is it the alternative explanations for the outcome
best available evidence? Is there enough found possible? Evidence-based practice
evidence to reach a conclusion? Are there is about using the best available evidence,
reasons why the evidence could be biased and critical appraisal plays an essential
in a particular direction? So, for example, if role in discerning and identifying such
we are critically appraising a colleague’s evidence.
experiences with a particular problem, we
6. WHY FOCUS ON THE
‘BEST AVAILABLE’ EVIDENCE?
In almost any situation it is possible to a colleague who only visited the country
gather different types of evidence from once. Exactly the same is true for
different sources, and sometimes in really management decisions. When making a
quite large quantities. But which evidence decision about whether or not to use a
should we pay more attention to and why? quality management method such as Six
A fundamental principle of evidence-based Sigma to reduce medical errors in a British
practice is that the quality of our decisions university hospital, information based on
is likely to improve the more we make use the findings from a study of 150 European
of trustworthy evidence – in other words, university hospitals in which medical errors
the best available evidence. This principle were measured before and after the
is apparent in everyday decision-making, introduction of Six Sigma is more
whether it is buying someone a birthday trustworthy than the professional
present or wondering where to go out for experience of a colleague who works at a
dinner. In most cases, we actively seek out small private hospital in Sydney. However,
information from multiple sources, such as such a study may never have been done.
our partner’s opinion, the experiences of Instead, the best ‘available’ evidence could
friends or the comments of a local food be case studies of just one or two
critic. Sometimes this information is so hospitals. For some decisions, there may
weak that it is hardly convincing at all, while be no evidence from the scientific literature
at other times the information is so strong or the oranisation at all, thus we may have
that no one doubts its correctness. It is no option but to make a decision based on
therefore important to be able through the professional experience of colleagues
critical appraisal to determine what or to pilot test different approaches and
evidence is the ‘best’ – that is, the most see for ourselves what might work best.
trustworthy – evidence. For instance, the Given the principles of evidence-based
most trustworthy evidence on which holiday practice, even if we rely on the experience
destination has the least chance of rain in of colleagues, this limited-quality evidence
Ireland in early August will obviously come can still lead to a better decision than not
from statistics on the average rainfall per using it, as long as we are aware of its
month, not from the personal experience of limitations when we act on it.
from the organization may be informative
7. SOME COMMON
but professional experience and judgment
MISCONCEPTIONS OF is needed to help to determine what
EVIDENCE-BASED PRACTICE practices make good sense if we are
working with professionally trained
colleagues or relatively low-skilled workers.
Misconceptions about evidence-based
Similarly, evidence from the scientific
practice are a major barrier to its uptake
literature can help us to understand the
and implementation. For this reason it is
extent to which our experience and
important that misconceptions are
judgment is trustworthy. Research
challenged and corrected. In most cases
indicates that years of experience in a
they reflect a narrow or limited
technical speciality can lead to
understanding of the principles of evidence-
considerable expertise and tacit
based practice.
knowledge. On the other hand, an
individual holding a series of unrelated jobs
Misconception 1: Evidence-based over the same number of years may have
practice ignores the practitioner’s far less trustworthy and reliable expertise.
professional experience. Evidence-based practice is hence about
This misconception directly contradicts our using evidence from multiple sources,
definition of evidence-based practice – that rather than merely relying on only one.
decisions should be made through the
conscientious, explicit and judicious use of Misconception 2: Evidence-based
evidence from four sources, including practice is all about numbers and
evidence from practitioners. Evidence-
statistics.
based practice does not mean that any
one source of evidence is more valid than Evidence-based practice involves seeking
any other. Even the professional out and using the best available evidence
experience and judgment of practitioners from multiple sources. It is not exclusively
can be an important source if it is about numbers and quantitative data,
appraised to be trustworthy and relevant. although many practice decisions involve
Evidence from practitioners is essential in figures of some sort. You do not need to
appropriately interpreting and using become a statistician to undertake
evidence from other sources. If we are evidence-based practice, but it does help to
trying to identify effective ways of sharing have an understanding of basic statistical
information with colleagues, evidence concepts that are useful to evaluate
critically some types of evidence. The the exception rather than the rule. The
principles behind such concepts as sample vast majority of management decisions
size, statistical versus practical are made over much longer time periods –
significance, confidence intervals and effect sometimes weeks or even months – and
sizes, can be understood without any often require the consideration of legal,
mathematics. Evidence-based practice is financial, strategic, logistical or other
not about doing statistics, but statistical organizational issues, which all takes
thinking is an important element. time. This provides plenty of opportunities
to collect and critically evaluate evidence
Misconception 3: Managers need to about the nature of the problem and, if
make decisions quickly and don’t there is a problem, the decision most
have time for evidence-based likely to produce the desired outcome. For
evidence-based practice, time is not
practice.
normally a deal breaker.
Sometimes evidence-based practice is
about taking a moment to reflect on how
Misconception 4: Each organization
well the evidence you have can be trusted.
is unique, so the usefulness of
More often it is about preparing yourself
evidence from the scientific
(and your organization) to make key
decisions well – by identifying the best literature is limited.
available evidence you need, preferably One objection practitioners have to using
before you need it. Some management evidence from the scientific literature is
decisions do need to be taken quickly, but the belief that their organization is unique,
even split-second decisions require suggesting that research findings will
trustworthy evidence. Making a good, fast simply not apply. Although it is true that
decision about when to evacuate a leaking organizations do differ, they also tend to
nuclear power plant or how to make an face very similar issues, sometimes
emergency landing requires up-to-date repeatedly, and often respond to them in
knowledge of emergency procedures and similar ways. Peter Drucker, a seminal
reliable instruments providing trustworthy management thinker, was perhaps the
evidence about radiation levels or altitude. first to assert that most management
When important decisions need to be made issues are ‘repetitions of familiar problems
quickly, an evidence-based practitioner cloaked in the guise of uniqueness’ 14.
anticipates the kinds of evidence that The truth of the matter is that it is
quality decisions require. The need to commonplace for organizations to have
make an immediate decision is generally myths and stories about their own
uniqueness 15. In reality they tend to be decisions we take through a process of
neither exactly alike nor unique, but constant experimentation, punctuated by
somewhere in between. Evidence-based critical reflection about which things work
practitioners need to be flexible enough to and which things do not. 18 19
take any such similar-yet-different qualities
into account. A thoughtful practitioner, for Misconception 6: Good-quality
instance, might use individual financial evidence gives you the answer to the
incentives for independent sales people but problem.
reward knowledge workers with
Evidence is not an answer. It does not
opportunities for development or personally
speak for itself. To make sense of
interesting projects, knowing that financial
evidence, we need an understanding of the
incentives tend to lower performance for
context and a critical mindset. You might
knowledge workers while increasing the
take a test and find out you scored 10
performance of less-skilled workers 16 17.
points, but if you don’t know the average or
total possible score it’s hard to determine
Misconception 5: If you do not have
whether you did well or not. You may also
high-quality evidence, you cannot do
want to know what doing well on the test
anything.
actually means. Does it indicate or predict
Sometimes there is very little or no quality anything important to you and in your
evidence available. This may be the case context? And why? Your score in the test is
with a new management practice or the meaningless without this additional
implementation of new technologies. In information. At the same time, evidence is
some areas the organizational context never conclusive. It does not prove things,
changes rapidly, which can limit the which means that no piece of evidence can
relevance and applicability of evidence be viewed as a universal or timeless truth.
derived in a context different than that of In most cases evidence comes with a large
today. In those cases the evidence-based degree of uncertainty. Evidence-based
practitioner has no other option but to work practitioners therefore make decisions not
with the limited evidence at hand and based on conclusive, solid, up-to-date
supplement it through learning by doing. information, but on probabilities, indications
This means pilot testing and treating any and tentative conclusions. Evidence does
course of action as a prototype: not tell you what to decide, but it does help
systematically assess the outcome of the you to make a better-informed decision.
8. WHAT IS THE EVIDENCE there are a large number of studies that
indicate the following:
FOR EVIDENCE-BASED
PRACTICE? • Forecasts or risk assessments based
on the aggregated (averaged)
Sometimes people ask whether there is professional experience of many people
evidence that an evidence-based practice are more accurate than forecasts based
approach is more effective than the way on one person’s personal experience
managers already typically make decisions. (provided that the forecasts are made
This is, of course, a very important independently before being combined)
20 21 22 23 24
question. To measure the effect of .
evidence-based practice would require an
• Professional judgments based on hard
evaluation of a large number of situations
data or statistical models are more
and contexts where evidence-based
accurate than judgments based on
practice was applied, and the
individual experience 25 26 27
measurement of a wide range of outcomes,
preferably by means of a double blind, • Knowledge derived from scientific
randomized controlled study. Such a study research is more accurate than the
might well be too difficult to carry out. opinions of experts 28
However, there is plenty of scientific
research that suggests that taking an • A decision based on the combination of
evidence-based approach to decisions is critically appraised evidence from
more likely to be effective. We noted earlier multiple sources yields better outcomes
in this chapter that the human mind is than a decision based on a single
susceptible to systematic errors – we have source of evidence 29
30
cognitive limits and are prone to biases that
impair the quality of the decisions we
• Evaluating the outcome of a decision
make. The fundamental questions to ask
has been found to improve both
include: How can we make decisions
organizational learning and
without falling prey to our biases? Are there
performance, especially in novel and
decision practices or processes that can
non-routine situations. 31 32
improve decision quality? Fortunately,
9. SUMMARY evidence is never perfect, and we must
always critically appraise the
trustworthiness of the evidence, regardless
We started this paper by explaining what
of whether it is drawn from experience or
evidence-based practice was about – that it
from the scientific literature. We can do that
involved decision-making through the
by asking how the evidence is gathered, if it
conscientious, explicit and judicious use of
could be biased in a particular direction, and
the best available evidence from multiple
if it is the best available evidence.
sources. By using and critically appraising
Sometimes the best available evidence is
evidence from multiple sources you
hardly convincing at all, while at other times
increase the likelihood of an effective
it is so compelling that no one doubts it. In
decision.
other situations there is very little or no
We also discussed why we need evidence- quality evidence available. In those cases
based practice. Most managers prefer to we have no other option but to work with the
make decisions solely based on personal limited evidence at hand and supplement it
experience, but personal judgment alone is through learning by doing. This means pilot
not a particularly reliable source of evidence testing and systematically assessing the
because it is prone to cognitive biases and outcome of the decisions we take.
thinking errors. In addition, managers and
consultants are often not aware of the Evidence is not an answer and in most
current scientific research available – in cases it comes with a large degree of
fact, there seems to be large discrepancies uncertainty. Evidence-based practitioners
between what managers and consultants therefore make decisions not based on
think is effective and what the current conclusive, solid, up-to-date information, but
scientific research shows. As a result, on probabilities, indications and tentative
billions of dollars are spent on management conclusions.
practices that are ineffective or even
harmful to organizations. However, the most important learning point
We then discussed what counts as is that evidence-based practice starts with a
evidence, by which we mean information, critical mindset. It means questioning
whether from scientific research, the assumptions, particularly where someone
organization itself or the professional (including ourselves) asserts some belief as
experience of managers. Even evidence a fact. So, from now on, always ask: ‘What
regarding the values and concerns of is the evidence for that?’, ‘How trustworthy
stakeholders may be important to take into is it?’ and ‘Is this the best available
account. However, we also noted that evidence?’
NOTES
1
This example is partly adapted from Pfeffer J. and Sutton, R. Trust the Evidence, Not Your Instincts. New York Times, September 3, 2011.
2
Mintzberg, H. The manager’s job: folklore and fact. Harvard Business Review, 1990, Vol 53 (4)
3
This definition is partly adapted from the Sicily statement of evidence-based practice: Dawes, M., Summerskill, W., Glasziou, P.,
Cartabellotta, A., Martin, J., Hopayian, K., Porzsolt, F., Burls, A., Osborne, J. (2005). Sicily statement on evidence-based practice. BMC
Medical Education, Vol. 5 (1).
4
Kahneman, D. Thinking, Fast and Slow. Penguin Group, London, 2011
5
Clements, M.P. An Evaluation of the Survey of Professional Forecasters Probability Distribution of Expected Inflation and Output Growth.
Journal of Economic Literature, 2002, November 22
6
Bazerman, M.H. Judgment in Managerial Decision Making. Wiley, New York, 2009
7
Simon, H.A. Models of Bounded Rationality, MIT Press, 1997 Vol. 3
8
Barnett-Hart, A.K. The Story of the CDO Market Meltdown: An Empirical Analysis. Harvard University, 2009
9
Loungani, P. The Arcane Art of Predicting Recessions, Financial Times, Dec 18, 2000
10
Tetlock, P. E. Expert Political Judgement, Princeton, NJ: Princeton University Press, 2006
11
Choudhry, N.K., et al. Systematic review: the relationship between clinical experience and quality of health care. Ann Intern Med. 2005;
142 (4)
12
Rynes, S.L., Colbert, A.E., Brown, K.G. HR Professionals' beliefs about effective human resource practices: correspondence between
research and practice. Human Resource Management, 2002; 41 (2), 149-174
13
More educated managers do, however, show somewhat greater knowledge of scientific findings.
14
Lowenstein, R. When business has questions, Drucker still has answers. New York Times, 2006; January 22. Bu 7.
15
Martin, J., Feldman, M. S., Hatch, M. J., & Sitkin, S. B. (1983). The uniqueness paradox in organizational stories. Administrative Science
Quarterly, 438-453
16
Ariely, D., Gneezy, U., Loewenstein, G., & Mazar, N. (2009). Large stakes and big mistakes. The Review of Economic Studies, 76(2), 451-
469.
17
Joseph, K., & Kalwani, M. U. (1998). The role of bonus pay in salesforce compensation plans. Industrial Marketing Management, 27(2),
147-159.
18
Pfeffer, J., Sutton, R.I. Treat Your Organization as a Prototype: The Essence of Evidence-Based Management. Design Management
Review, 2010; 17 (3): p 10-14
19
Weick, K.E, & Sutcliffe, K. (2007). Managing the Unexpected: Resilient Performance in an Age of Uncertainty. New York: Wiley.
20
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Atlanta, 2003
22
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23
Scott Armstrong, J. Combining Forecasts, in Principles of Forecasting: A handbook for Researchers and Practitioners, Kluwer Academic
Publishers, New York, 2001
24
Yaniv, I., & Choshen-Hillel, S. (2011). Exploiting the Wisdom of Others to Make Better Decisions: Suspending Judgment Reduces
Egocentrism and Increases Accuracy, Journal of Behavioral Decision Making, 2012; 25 (5) p 427–434
25
Lewis, M. Moneyball: The Art of Winning an Unfair Game. Barnes and Noble, 2003
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Grove, W.M. Clinical Versus Statistical Prediction. Journal of Clinical Psychology, 2005; 61(10), p 1233–1243
27
Ayres, I. Super Crunchers. Bantam Books, New York, 2007
28
Antman, E.M. et al, A comparison of results of meta-analyses of randomized control trials and recommendations of clinical experts, JAMA,
1992: 268 (2) p 240 – 248
29
McNees, S.K. The Role of Judgment in Macroeconomic Forecasting Accuracy, International Journal of Forecasting, 1990; 6 (3), p 28-299
30
Tetlock, P. E. Expert Political Judgement, Princeton, NJ: Princeton University Press, 2006
31
Anseel, F., Lievens, F., & Schollaert, E. (2009). Reflection as a strategy to enhance task performance after feedback. Organizational
Behavior and Human Decision Processes, 110 (1)
32
Ellis, S., & Davidi, I. (2005). After-event reviews: drawing lessons from successful and failed experience. Journal of Applied Psychology,
90(5), 857.
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