Evidence-Based Management EBM
Using data and facts to make business decisions
Evidence-based management is a management technique that bases decisions on data and facts.
In this context, KPIs are critical: no new process can be implemented without a clear understanding of the ways it will be measured.
Steps to manage by evidence
- collect data as fresh (primary source) and frequently as necessary
- filter outliers and spot measurement errors
- treat data so to transform it into information (think in terms of statistics)
- analyse the information looking for patterns
- beware of correlation-causality misperceptions: it is not because event A happens before B that A has caused B
- take a decision but be aware of potential biases
- revise the decision based on new data as frequently as necessary (set triggers and automate alarms to make it continuous)
