Archives For April 2010

Evidence-Based Management

David Burkus —  April 28, 2010

I once had a conversation with a cardiologist about a brand new drug. This drug had been released literally days before and this physician told me he was already using it. Despite my background in pharmaceuticals (or maybe because of it) I was taken aback. I asked him what experiences he had that led him to begin to prescribe it.

“I don’t need any. The data is there.”

The physician was trained to respect evidence-based medicine. Indeed the majority of physicians now practicing are trained to consider the results of scientific studies and give that evidence more weight than their own, limited experience. Evidence-based medicine is serious business with doctors.

Why is business different?

In the organizational world, we tend to believe that managers get better by being managers. As you gain years of experience, we mindless believe, then you become better and better at managing. Surely, there is something to be said for experience. However, managers must realize that their experience is anecdotal. Just because it worked once with a certain team in a certain organization doesn’t mean it will work again in a different arena. In medical history, placing too much emphasis on individual experience led to doctors drilling holes in patients’ brains to cure headaches and draining life-giving blood from sick patients. In management, it leads to poorly managed, burnt-out teams.

But there’s hope. Medicine has progressed because of centuries of scientific studies. Likewise in management, there is nearly a century of scientific study and analysis of organizations and management. This series of posts is designed to serve as a mini-medical school or managers, giving a summary of the various management research and theories that these studies have produce.

Learning these theories is the first step to practicing evidence-based management.

Russell Ackoff was a professor of management at The Wharton School, University of Pennsylvania. He was also a leading authority on systems thinking. Ackoff died in October 2009, but this new book “Systems Thinking For Curious Managers,” is an excellent contribution to systems thinking and serves as a fitting tribute to his legacy.

This book is a short and very accessible read. Ackoff and his co-authors, Herbert J. Addison and Andrew Carey, provide an exceptional overview of the basics of general systems as they specifically relate to business and organizations. They hit all the basics with succinct treatments of systems principles such as feedback loops, tropisms, self-organization, interconnectedness, equifinality, events vs. systems, and parts vs. the whole. They also provide excellent references for those that might want to learn more about the origins, principles and practices of systems thinking. Here is a definition of systems and systems thinking that is as simple yet complete as any you will find:

A system is a set or pattern of relationships that work together in some fashion. Systems can accomplish things that would be impossible if the same elements were put into random relationships, or no relationships at all…..Systems thinking looks at relationships (rather than unrelated objects), connectedness, process (rather than structure), the whole (rather than just its parts), the patterns (rather than the contents) of a system, and context. (p. 6).

The book summarizes Ackoff’s 81 f-laws – Ackoff’s wisdom about organizations expressed as a series of unspoken laws and unconventional truths of management. Here are some examples of some of his original f-laws:

  • You can’t teach an old dog or executive new tricks, or even that there are any new tricks
  • The best reason for recording what one thinks is to discover what one thinks and to organize it in transmittable form
  • In an organization that disapproves of mistakes, but identifies only errors of commission, the best strategy for anyone who seeks job security is to do nothing
  • Administration, management, and leadership are not the same thing
  • Managers cannot talk and listen at the same time; in fact, most managers find it very difficult to listen when they are not talking
  • Complex problems do not have simple solutions, only simple minded managers and their consultants think they do

The book then goes on to introduce 40 new f-laws. I love what he says about knowledge, understanding, and wisdom: “knowledge enables us to make things work; understanding enables us to make things work the way we want; wisdom enables us to want the “right” things, things that increase our ability to obtain what we and others need and want.” (p. 67).

This book is a gem both for those familiar with and those new to systems thinking. It is well worth the two hours it will take you to read it.

  • Bret Simmons is a business professor at the University of Nevada, Reno.
  • This post is a repost from his website at http://www.bretlsimmons.com.

At this point, you’re bound to be thinking that timeshare salespeople and insane strong men are extreme examples. However, this is exactly my point. These two examples are certainly outliers, but they’re still valid.

And because they’re valid, the Maxwell definition is invalid. It is simple, but it is weak.

The challenge then, is to create a strong definition that is equally simple. This definition should incorporate Maxwell’s thinking on leadership, yet eliminate the extreme outliers of leadership. It should be as simple as Maxwell’s, but it should be able to withstand the criticisms we just explored.

It should be this:

Leadership is the process of influencing others to work toward a mutually desired vision.

Leaders, then, recruit and influence followers to work together to make a share vision reality. This definition it not as simple as Maxwell’s, but it is simple. It does incorporate the emphasis on influence that inspired Maxwell’s infamous maxim. Furthermore, it stands strong against our previously discovered criticisms. It locks out salespeople and tyrants.

Salespeople are not leaders in our mind, nor in this definition. They certainly influence. However their goal is not to influence customers to work. Salespeople influence prospects to become customers, to pay for said product or service. However, buying isn’t working. (And isn’t the reason we buy money for things that we don’t want to work for them).

Whatismore, our definition makes it possible to give Hitler the title he deserves: bad leader. Certainly, Hitler possessed a talent for rallying people to work. He was a charismatic leader, an icon. I’m told there was even a Hitler action figure. However, the future vision they worked for was not the one that most expected. At some point, even Hitler’s followers realized that he was not taking them where they thought they we going.

We can use this definition to eliminate non-leader influencers (unless they follow you, or work toward the vision you cast). We can use this definition to discriminate between good and bad leaders (are followers working toward a future they actually desire?).

Leadership is the process of influencing others to work toward a mutually desired vision.

With the simple addition of a few words, we’ve made Maxwell’s motto stronger and expanded our conceptualization of leadership.

Shortly after any political or corporate scandal, the talk on the media immediately shifts to a discussion on bad leadership. Indeed, Jeffrey Skilling was a bad leader of Enron. This brings on a never-ending debate about how we distinguishing between good leaders and bad leaders. In our mind, we can easily cite good leaders from bad leaders. If you can’t, I’ll provide a helpful comparison:

Martin Luther King Jr. versus Hitler

It’s not hard to come to the conclusion that MLK was a good leader and Hitler was a bad leader.

Unless you’re using Maxwell’s definition of leadership.

If leadership is influence, then good leaders are very influential and bad leaders are not. But here’s where it gets messy. If you’re not good at influencing people, then you’re also not a leader. So under the Maxwell description: there are no bad leaders.

Yet there stands Hitler in contrast to MLK or Ghandi or George Washington. Clearly Hitler was a bad leader, but the popular definition presents us from labeling him as such. We need a more expanding definition. One that allows us to block out salespeople and insane strong men from being classified as good leaders.

There’s more to leadership than influence.

A few years ago, I was invited to a special presentation. I was offered a three-night, all expenses paid vacation in the Caribbean. The only stipulation was that on Day Three of the vacation, I had to listen to a special presentation about the resort I was staying at.

I declined. As I’m sure you would too.

We decline these almost too good to be true offers because we know what happens during the special presentation. We have to sit and listen to a pitch for time-shares. The presenters will try to convince us to shell out several thousands dollars for the right to stay one week a year at the resort we just previewed.

Their job is to influence us to pay for a time-share. In fact, all salespeople have the same job description: influence. Sales is a process of influencing prospective customers to become customers.

Let’s examine some simple Logic:

  • Major Premise: “Leadership is influence.”
  • Minor Premise: Salespeople influence others.
  • Conclusion: Salespeople are leaders.

But are they? Very few people would agree with this conclusion. More often than not, salespeople are not leaders. So there must be an error somewhere in our syllogism.

Indeed there is: our major premise.

We’re forced to conclude that salespeople are leaders unless we change our major premise. Unless we add something to our definition that screens them out, we have to let them in.