Evidence-Based Management

BR0601_500Here is an excerpt from a classic article (January 2006) written by Jeffrey Pfeffer and Robert I. Sutton for Harvard Business Review and the HBR Blog Network. To read the complete article, check out the wealth of free resources, obtain subscription information, and receive HBR email alerts, please click here.

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A bold new way of thinking has taken the medical establishment by storm in the past decade: the idea that decisions in medical care should be based on the latest and best knowledge of what actually works. Dr. David Sackett, the individual most associated with evidence-based medicine, defines it as “the conscientious, explicit and judicious use of current best evidence in making decisions about the care of individual patients.” Sackett, his colleagues at McMaster University in Ontario, Canada, and the growing number of physicians joining the movement are committed to identifying, disseminating, and, most importantly, applying research that is soundly conducted and clinically relevant.

If all this sounds laughable to you — after all, what else besides evidence would guide medical decisions? — then you are woefully naive about how doctors have traditionally plied their trade. Yes, the research is out there—thousands of studies are conducted on medical practices and products every year. Unfortunately, physicians don’t use much of it. Recent studies show that only about 15% of their decisions are evidence based. For the most part, here’s what doctors rely on instead: obsolete knowledge gained in school, long-standing but never proven traditions, patterns gleaned from experience, the methods they believe in and are most skilled in applying, and information from hordes of vendors with products and services to sell.

The same behavior holds true for managers looking to cure their organizational ills. Indeed, we would argue, managers are actually much more ignorant than doctors about which prescriptions are reliable—and they’re less eager to find out. If doctors practiced medicine like many companies practice management, there would be more unnecessarily sick or dead patients and many more doctors in jail or suffering other penalties for malpractice.

It’s time to start an evidence-based movement in the ranks of managers. Admittedly, in some ways, the challenge is greater here than in medicine. The evidence is weaker; almost anyone can (and often does) claim to be a management expert; and a bewildering array of sources—Shakespeare, Billy Graham, Jack Welch, Tony Soprano, fighter pilots, Santa Claus, Attila the Hun—are used to generate management advice. Managers seeking the best evidence also face a more vexing problem than physicians do: Because companies vary so wildly in size, form, and age, compared with human beings, it is far more risky in business to presume that a proven “cure” developed in one place will be effective elsewhere.

Still, it makes sense that when managers act on better logic and evidence, their companies will trump the competition. That is why we’ve spent our entire research careers, especially the last five years, working to develop and surface the best evidence on how companies ought to be managed and teaching managers the right mind-set and methods for practicing evidence-based management. As with medicine, management is and will likely always be a craft that can be learned only through practice and experience. Yet we believe that managers (like doctors) can practice their craft more effectively if they are routinely guided by the best logic and evidence—and if they relentlessly seek new knowledge and insight, from both inside and outside their companies, to keep updating their assumptions, knowledge, and skills. We aren’t there yet, but we are getting closer. The managers and companies that come closest already enjoy a pronounced competitive advantage.

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Managers seeking the best evidence also face a more vexing problem than physicians do: Because companies vary so wildly in size, form, and age, compared with human beings, it is far more risky in business to presume that a proven “cure” developed in one place will be effective elsewhere. Still, it makes sense that when managers act on better logic and evidence, their companies will trump the competition. That is why we’ve spent our entire research careers, especially the last five years, working to develop and surface the best evidence on how companies ought to be managed and teaching managers the right mind-set and methods for practicing evidence-based management. As with medicine, management is and will likely always be a craft that can be learned only through practice and experience. Yet we believe that managers (like doctors) can practice their craft more effectively if they are routinely guided by the best logic and evidence—and if they relentlessly seek new knowledge and insight, from both inside and outside their companies, to keep updating their assumptions, knowledge, and skills. We aren’t there yet, but we are getting closer. The managers and companies that come closest already enjoy a pronounced competitive advantage.

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Here is a direct link to the complete article.

Jeffrey Pfeffer is Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University. His latest book, published in 2015, is Leadership BS: Fixing Workplaces and Careers One Truth at a Time.

Robert Sutton is Professor of Management Science and Engineering in the Stanford Engineering School, where he is co-director of the Center for Work, Technology, and Organization, co-founder of the Stanford Technology Ventures Program, and a co-founder and active member of the new “d.school.” His new book, with Huggy Rao, is Scaling Up Excellence: Getting To More Without Settling For Less.

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