Evidence-based management uses scientific studies to inform decision-making in business organizations, similar to evidence-based medicine. There are no formal requirements for the practice, but managers who use facts to manage organizations can make decisions about payroll, incentives, benefits, team structure, and work environment based on peer-reviewed information. Academic studies and professional organizations promote evidence-based management.
Evidence-based management is the application of factual information to decision making in business organizations. Rather than relying on intuition or conviction, managers use scientific studies to run their organizations and drive efficiency and productivity. This approach builds on the evidence-based medicine movement, which uses the results of scientific studies and analyzes to inform treatment decisions and the best options for patients. The goal is a positive result, using information from controlled tests to decide how to proceed; in this respect, it is similar to medicine.
As a profession, there are no formal requirements for the practice, which can complicate management. Some managers are formally trained and may have credentials such as a Master of Business Administration (MBA). Others may work their way up the ranks without any specific training. No licenses or other certifications are required to function in management. People may approach management with intuitive or belief-based styles, rather than considering scientific evidence.
Managers who use facts in their approach to managing organizations consider what will benefit the organization in the long run based on peer-reviewed information. Evidence-based management, for example, can be used to make decisions about payroll, incentives and benefits, based on studies showing which options are most effective. Similarly, companies can decide how to structure teams, formulate assignments and organize the work environment through evidence-based management. Instead of assuming something works because it’s been used in the past or seems like a good idea, the manager consults studies to see if it worked in tests.
Academic studies in evidence-based management can use lookback reviews of management styles and performance to see how different approaches work in the field. Studio designers can also ask managers to participate in tests in a controlled environment or they can create a simulation to allow them to explore different options. Researchers can discuss the advantages and disadvantages of various approaches to help managers make evidence-based decisions in their workplaces. A study might show, for example, that drivers tend to make more mistakes when assigned to new routes, which is an argument against rotating drivers between routes if it can be avoided.
Some professional organizations promote evidence-based management and may publish publications with the most recent studies. This is also a topic of interest in management and business schools, where students can discuss studies and learn about the application of scientific thinking to business environments. As in medicine, this approach can take the guesswork out of troubleshooting and preventing problems.
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