Evidence-Based Management

This is a great article that really sets the facts straight.  The main idea is that there is plenty of evidence out there about how to manage your company; the problem lies in finding this and applying it to your specific purpose.  In the article they claim that doctors don’t use the evidence and research available to them to their advantage.  There is plenty of medical research and medical journals about so much stuff that there is no way doctors can get to them all.  The doctors realize this and take it to the extreme and don’t even bother to read any.  They are simply using the knowledge they learned through school and what they have personally learned to diagnose and work on patients.  The thing that doctors need to do is learn to sift through the crap and use the true knowledge to their advantage.

This applies even more to businesses and managers. There is a plethora of knowledge on how to manage a business and how it is suppose to be done.  The thing managers need to do is realize that just because something worked on one specific company does not mean that it will work for their specific company.  This is in contrast to doctors because doctors are all dealing with the same thing, the human.  In the medical world though this knowledge needs to be tested and doctors need to not assume that just because one cure fixed one individual does not mean that it will fix the next person; even though in most cases there is a higher chance of doctors being able to a apply the same cure to fix many things.  Sadly this is far from true in the business world.

For instance, some managers believe very much so that if you give your employees a stake in the company, stock options, that they will work harder.  Most of the time this is not the case.  Employees with stock options typically do not make a connection with their direct work having any affect on their specific stock options.

Another great example that they used to show that not all ideas are universal in making all businesses function properly.  There is some industries where the first company that was formed in that particular industry is the main leader in that industry and that specific company has such a great advantage over others that it is almost impossible to gain any of the market share by being the second or third company in that industry.  On the contrary there are many industries in which the second, third, or even farther down the line, that company is succeeding higher than the original company.  You might ask why this is.  It is very simple in that the following companies either say a weakness in the first company and either fixed it or simply took those companies ideas and made a company that functioned better.

There are many reasons why some companies succeed and why others do not; the idea that the article is trying to get across is that managers and companies need to take in all the information they can.  They not only need to be able to take in all this information but they need to be able to sift through it and apply the practices that will work for that specific company.

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