denise m. rousseau h.j. heinz ii university professor of organizational behavior carnegie mellon...
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Evidence-Based Management Teaching Managers to Make Better Decisions . Denise M. Rousseau H.J. Heinz II University Professor of Organizational Behavior Carnegie Mellon University Pittsburgh, PA USA. What is Evidence-Based Management?. - PowerPoint PPT PresentationTRANSCRIPT
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Evidence-Based Management Teaching Managers to Make Better Decisions
Denise M. RousseauH.J. Heinz II University Professor of Organizational Behavior
Carnegie Mellon UniversityPittsburgh, PA USA
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EBMgt is the practice of making organizational decisions based upon conscientious use of
1. Science-based principles & knowledge
2. Valid & relevant facts
3. Critical thinking aided by decision supports
4. Ethical considerations (i.e., effects on stakeholders)
What is Evidence-Based Management?
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Better Decisions by Using Practices that Work (and avoiding those that don’t!)
Defensible Decisions that Stand Up to Scrutiny (using best evidence and best process)
Developing Expertise throughout a Career (experience can be a poor teacher--bad habits!)
20 years of valid experience is different than 1 year of experience repeated 20 times!
Why Should We and Our Students Care about EBMgt?
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What does EBMgt Look Like?
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Evidence-based Piloting?
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Chesley Sullenberger, USAIR pilot, has been a visiting scholar at UC Berkeley’s Collaborative for Catastrophic Risk Management since 2007
Does research on how to make decisions to maintain safety despite technological complexity and crisis conditions
1. Use of Scientific Findings
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Has written and analyzed aviation accident reports for over 20 years
2. Reliance on Reliable and Valid Organizational Facts
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Used Decision Aids to Support Good Decision: As Sully considered what decision to make that day, he had his copilot review and follow all checklists on board relevant to crash landings
Formal Education to Prime His Skills: Sully is a graduate of the U.S. Air Force Academy and holds masters degrees from both Purdue University in Industrial Psychology and the University of Northern Colorado in Public Administration
3. Mindful Decision Making: Becoming Decision Aware
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The last person to leave the plane, Chesley Sullenberger twice walked the plane’s aisle to check all passengers were off
Sully’s last act onboard was to grab the passenger list. Used on-shore to verify rescue of all passengers and crew
4. Ethics and Responsibility to Stakeholders
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In Sullenberger’s Own Words…
“One way of looking at this might be that for 42 years, I've been making small,
regular deposits in this bank of experience, education and training.
And on January 15, the balance was sufficient so that I could make a very large withdrawal.”
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How Is Sullenberger’s Example Relevant to Your Own Leadership
Development?
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EBMgt is a means to improve decision quality.
It’s a career, not a course.
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Evidence-based practice movements abound in medicine, education, and public policy
Management research from psychology, engineering, operations research (ETC.) yields 1000s of studies annually
Internet (scholar.google.com) gives ready access Innovative companies now hiring “chief evidence
officers” Public demands accountability (quality decisions that
are defensible)
The Zeitgeist
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EBMgt Overcomes Limits of Unaided Decisions
Bounded Rationality
The Small Numbers Problem of Individual Experience
Prone to See Patterns Even in Random Data
Critical Thinking
Decision Supports
Research• Large Ns > individual
experience• Controls reduce bias
The “Human” Problem Evidence-Based Practice
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Three approaches
Push: teaching management principles based upon a convergent body of research.
Pull: teaching students how to find, appraise and apply the evidence from research and their own organizations.
Process: focus on the context, steps in decision making and ethics
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1. Get evidence into the conversation 2. Teach/Learn Evidence in Manager’s Area of
Practice2a Teach/Learn Use of Scientific Evidence
2b Use Reliable and Valid Business
3. Learn to Gather Evidence
4. Become “Decision Aware”5. Reflect on decision’s ethical implications
Five Good EBMgt Habits
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#1 Get evidence into the conversation Regularly ask “what’s the evidence…?”
Illustration- Discuss with your seatmates…
What’s a practice in your organization that you suspect might not be NOT evidence-based?
Five Good EBMgt Habits
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#2 Teach/Learn Evidence in Manager’s Area of Practice
Focus on Action Principles Where Science is Clear (On-going Practice of A Professional Manager)
Focus on Business Facts based on valid metrics relevant to your decisions (On-going Practice of Responsible & Transparent Organization)
Five Good EBMgt Habits
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Evidence is not the same as ‘proof’ or ‘hard facts’
... can be
- so strong that no one doubts its correctness, or
- so weak that it is hardly convincing at all
What is evidence?
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Evidence of effect (do!)
Evidence of no effect (don’t!)
No evidence of effect (research!)
Don’t confuse
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#2a Teach/Learn Use of Scientific Evidence
Focus on Action Principles Where Science is Clear
Rely on Science-based Sources Example: Locke’s Handbook of Organizational Behavior
(access electronic copy for free)
Peer-reviewed research, especially meta-analyses
Reduce dysfunctional variations in practiceBuild effective routines, procedures, checklists
Five Good EBMgt Habits
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#2a Teach/Learn Use of Scientific Evidence
Best Scientific Evidence is based on large N (sample size of
people/organizations)
well-controlled studies with comparison groups &/or longitudinal data
peer-reviewed
Five Good EBMgt Habits
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Peer Reviewed Journals
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#2b Use Reliable and Valid Business Facts
Best Business Facts are large numbers sampled relative to population
(not single or isolated cases, e.g. %sales/# sales calls)
linked to context (season, location, #users, etc.)
provide key indicators for business decisions
Five Good EBMgt Habits
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Illustration--Discuss with your seatmates…
What indicators does your organization most commonly use to make important decisions?
Are these the “best business facts” you need to make these decisions?
What indicators would be more useful, if you could get them??
Five Good EBMgt Habits
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# Medication errors in Unit 1 were 200% greater in 2011 than Unit 2’s. Is patient safety worse in Unit 1? Depends on number of unsafe incidents divided by # patients or # procedures—needs a control.
Mike has w/10 subordinates & 20% turnover while Kim has 55 employees & 10% turnover. Is retention better in one? Hard to determine. Small N’s have greater bias and are more variable.
McDonald’s stores average 300+% turnover/year. Does Mickey D. have a problem? Depends on industry comparison and business strategy.
Company A managers focus decisions on monthly cost, downtime and revenues. Company B managers focus on service quality, employee retention and profitability by customer category. So what? B’s more diverse performance criteria can promote attention to longer-term and growth-oriented outcomes. A’s narrower economic focus can promote shorter-term thinking.
Help Learner How to Interpret Business Facts
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#3 Learn to Gather Evidence
Structure and pose a managerial question
Search for best available evidence (check out Google Scholar or CEBMa website)
Critically appraise information found
Apply relevant case information to decision
Write down the decision made, assumptions, and expected outcomes
Evaluate outcomes over time
Five Good EBMgt Habits
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Gathering Evidence is a 5-step approach
1. Formulate an answerable question (PICOC)
2. Search for the best available evidence
3. Critical appraise the quality of the found evidence
4. Integrate the evidence with managerial expertise and organizational concerns and apply
5. Monitor and evaluate the results
Five Good EBMgt Habits
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What kind of evidence are we looking for?
Studies with a design that best answers your question
Studies with the highest level of evidence
Getting the (Scientific) Evidence
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Levels of internal validity
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Explanation
Which study for which question?
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Levels of internal validity
It is shown that …
It is likely that …
Experts are of the opinion that …
There are signs that …
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Learning through play !
Try all buttons
Make lots of mistakes
Have fun!
Just do it!
Practice Searching for EvidenceUsing “Google Scholar”
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#4 Become “Decision Aware”
Identify different kinds of decisions learners face? What kinds of different approaches are used to them? Why?
How can you determine whether you made a “good decision” when you cannot know the outcome? (The answer to this question is what is known as “decision quality”)
Five Good EBMgt Habits
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“Decision Awareness” Promotes Decision Quality
To manage decisions, know what decisions must be made.
Map out decisions that affect key outcomes. Who is responsible? (Are they prepared?)
What information is required? (Will it be available when needed?)
Five Good EBMgt Habits
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Five Good EBMgt Habits
Awareness Calls Attention to Decision Process. Proper Processes Improve Decision Quality
What is the process for making the decision?
Different processes work better…- for routine decisions (create validated checklists and action plans)- for decisions with known unknowns (systematic sequence of
considerations)- for decisions with unknown unknowns (pilot-tests and trial/
experiment)
Decisions have an “aftermath” and a “pre-math” that a good manager actively manages. Is the decision well-managed? Help make it so.
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Using Evidence Well Requires Your Own Critical Judgment
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#5 Reflect on Decision’s Ethical Implications
Who are stakeholders for this decision?
Possible effects?
How might the decision be altered to optimize positive stakeholder effects and reduce negative?
Five Good EBMgt Habits
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Scientific Principles for Effective Teaching
Set learning goals (2-5)
Pre-test: where does learner stand on learning goal before course
Build opportunities for practicing those learnings throughout course (curriculum)
Post-test: Measure progress on each learning goal and provide feedback
Feedback & Redesign: Use feedback to make course more effective over time
Five Good EBMgt Habits
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Turning evidence into practice
Evidence based management:closing the gap between research and practice
Turning Evidence into Practice & Practice into Evidence
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Turning evidence into practice
J. Ehrlinger, K. Johnson, M. Banner, D. Dunning, J. Kruger. (2008) Why the unskilled are unaware: Further explorations of (absent) self-insight among the incompetent. Organizational Behavior and Human Decision Processes, 105,(1) pg. 98
E.A. Locke (ed.), Handbook of Principles of Organizational Behavior, 2nd edition, 2009. Malden, MA: Blackwell.
D. M. Rousseau (2012) Oxford Handbook of Evidence-Based Management, New York.
D.M. Rousseau, D.M. & E. Barends (2011) Becoming an evidence-based manager. Human Resource Management Journal, 21, 221-235.
D.M. Rousseau, J. Manning & D. Denyer (2008) Evidence in Management and Organizational Science: Assembling the field’s full weight of scientific knowledge through reflective reviews. Annals of the Academy of Management, 2, 475-515.
R.C. Schank, D. Llyras & E. Soloway (2010) The future of decision making. New York: Palmgrave Macmillan.
J.F. Yates. (2003). Decision management. San Francisco: Jossey-Bass.
J.F. Yates & M.D. Tschirhart (2006). Decision making expertise. In K. A. Ericsson, N. Charness, P. J. Feltovich, & R. R. Hoffman. (Eds.). Cambridge handbook of expertise and expert performance (pp. 421-438). New York: Cambridge University Press.
J.F. Yates, E.S. Veinott & A.L. Patalano (2003). Hard decisions, bad decisions: On decision quality and decision aiding. In S. L. Schneider & J. C. Shanteau (Eds.), Emerging perspectives on judgment and decision research (pp. 13-63). New York: Cambridge University Press.
Got Evidence? References
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Turning evidence into practice
Appendix: How to conduct a CAT
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CAT: Critically Appraised Topic
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CAT: Critically Appraised Topic
A Critically Appraised Topic (CAT) is a structured, short (3 pages max) summary of evidence on a topic of interest, usually focused around a practical problem or question. A CAT is like a “quick and dirty” version of a systematic review, summarizing the best available research evidence on a topic. Usually more than one study is included in a CAT.
Examples: http://www.cebma.org/presentations/
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CAT: structure
1) Question (PICOC)
2) Background / context
3) Search strategy
4) Results / evidence summary
5) Comments (limitations)
6) Conclusion
7) Practical relevance
8) References
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Asking the Right Question?
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Asking the Right Question?
Does team-building work?
Does leadership development training work?
Does management development improve the performance of managers?
Does employee participation prevent resistance to change?
Is 360 degree feedback effective?
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P = Population
I = Intervention (or success factor)
C = Comparison
O = Outcome / Objectives
C = Context
Answerable Question: PICOC
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Scenario: You are a consultant, your client is an insurance company, there are plans for a merger, you have heard that the other company has a different culture, you want to know if this will effect the outcome
P = Organizations with a different corporate culture
I = Merger
C = Organizations with a similar corporate culture
O = Long term profitability
C = Profit organizations, competitive market
Answerable Question: PICOC
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Search terms
Operationalise your Pico elements!
O = long term profitability?
Share holder value? Return on investment? Return on assets? EBIT? Employee productivity? Profit margin? Competitive position? Corporate image? Innovation power? Market share? Customer satisfaction?
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The problem with finding evidence:
the abundance of literature
Searching Evidence
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Searching evidence
Article 1
Article 2
Article 3
Article 4
Article 5
Article 6
Article 7
Article 8
Postgraduate Course
… and not unequivocal
Searching Evidence
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Evidence-based Searching
In a systematic and transparent way searching for the “best” evidence
Part of EBMgt where decision maker is not a ‘subject matter expert’
Searching Evidence
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What kind of evidence are we looking for?
1. Studies with a design that best suits the research question
2. Studies with the highest level of evidence
Searching Evidence
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Searching evidence
Where do we search?
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Databases
ABI/INFORM
Business Source Elite
PsycINFO
Web of Knowledge
ERIC
Google Scholar
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Searching evidence
How do we search?
Search Strategy
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Search Strategy
1. Determine subject
3. Select Keywords
4. Select Suitable Information Sources
5. Run Search Query
2. Formulate Answerable Question
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Search Strategy
Why do we need a search strategy?
Promotes deeper learning about your question
Leads to better yield of quality research.
Saves time in the long run.
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Two search strategies
Search strategy
Building blocks methodSnowball method
(Don’t forget to use pointer knowledge along the way)
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Snowball method
Starting from one book or article, you search for other literature on the same topic.
Snowballing to older publications by finding out which publications were used by the author (see bibliography of book or article).
Snowballing to more recent publications by finding out how often that book or article has been cited by other authors (see Web of Knowledge or Google Scholar).
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Synonyms or related terms
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Synonyms or related terms
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Building blocks method
Synonyms or related terms
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Keyword 1 Keyword 2 Keyword 3 Keyword 4
AND AND AND
OR OR OR
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Example: You are a consultant, your client is an insurance company, there are plans for a merger, you have heard that the other company has a different culture, you want to know if this will effect the outcome
P = Organizations with a different corporate culture
I = Merger
C = Organizations with a similar corporate culture
O = Long term profitability
C = Profit organizations, competitive market
Search terms
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P = Organizations with a different corporate culture #2
I = Merger #1
C = Organizations with a similar corporate culture
O = Long term profitability #3
C = Profit organizations, competitive market
Select Keywords
1. Underline the most important keywords
2. Number the order of importance
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corporate culture: organizational behavior/character, corporate identity
merger: acquisition, take-over, fusion, combination, unification
profitability: profit, advantage, return on investment, shareholder value
The keywords of your search query may be enough.If not, select more words by using:
Select keywords
synonyms
alternate spelling, translations
related terms / words / subjects
narrower or broader terms
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www.scholar.google.com
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www.scholar.google.com
useful search
specifications