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Evidence-Based Management (EBM) is the strategic use of data to inform decision-making processes at both the strategic and tactical levels of an organization. It’s about using data as a guide—not a dictator—to shape behaviors and drive outcomes that benefit your business.
In essence, it’s not about letting numbers rule your every move; instead, you gather data to inform your actions and understand the behaviors that impact the results. Let’s dive into how EBM can transform your approach to management and decision-making.
Data informs behaviors. The way you measure your team’s performance has a direct impact on how they behave. Ever encountered someone in your organization who seems to be working against the team’s goals or is less engaged than expected? 🤔 Often, it’s not a personal issue—it’s about the metrics they’re being judged on.
Metrics and measures often influence individual behaviors.
People respond to the metrics that are used to evaluate them.
Understanding these metrics can help you see why a person or team acts in a particular way.
Pro tip: If you notice a team member’s actions aren’t aligning with your expectations, dig into the metrics they are held accountable for. It can provide clarity on why they behave the way they do.
Before diving into metrics, you need to establish what outcomes you want to achieve. Here are some common business outcomes you might aim for:
📈 Increased revenue
💡 Enhanced value delivery to customers
💵 Cost savings
🚀 Expanding market capabilities
Without a clear understanding of your desired outcomes, it’s challenging to select metrics that guide your organization in the right direction.
Once you have your outcomes defined, the next step is to identify metrics that can help you measure progress towards those goals. These metrics can be either:
Leading indicators: Metrics that predict future outcomes.
Lagging indicators: Metrics that show the results after the actions have been taken.
Let’s say your organization is running a live service and you want to minimize service outages. A valuable metric might be:
By tracking this, you can monitor whether issues are being resolved promptly and identify any trends. For instance, if most teams resolve issues quickly but one team struggles with incidents lingering beyond six or seven sprints, it’s a flag to investigate further. 🚩
One of the key tenets of EBM is that data should inform, not control. Metrics provide signals, not absolute truths. For example, if you notice a team lagging in clearing incidents, it’s not always a sign of failure. It’s a signal that calls for deeper exploration.
Imagine a team has unresolved incidents beyond the typical three-sprint window. This doesn’t automatically mean they’re underperforming. They might be:
Waiting on actions from a third-party they have limited influence over.
Dealing with external dependencies that are slowing down their resolution process.
In such cases, the team might be doing everything right—chasing the issue, applying pressure, and keeping it on their radar—but progress is slow due to factors outside their control. 📅
The takeaway? Data informs but doesn’t dictate. Use it as a conversation starter to understand the challenges your teams face.
Collect Data: Gather quantitative and qualitative data from your teams.
Analyze the Metrics: Identify patterns, trends, and anomalies.
Ask Questions: Use the data as a basis to ask deeper questions about what’s happening.
Make Informed Decisions: Apply your findings to make decisions that align with your desired outcomes.
Data doesn’t always tell the whole story. There will be gaps and unknowns. The key is to extrapolate from what you do know and make informed assumptions about the rest. Think of it like putting together a puzzle—sometimes, you need to infer the missing pieces.
Create a dashboard to track key metrics for your teams.
Review metrics regularly to spot trends early.
Engage your teams in the process, allowing them to understand how their work impacts the metrics and outcomes.
By adopting an evidence-based approach, your organization can enjoy several benefits:
🚀 Better alignment between strategic goals and day-to-day actions.
💬 Improved communication as data becomes a common language for decision-making.
🎯 Focus on value rather than arbitrary targets, leading to more meaningful progress.
🧠 More empowered teams, as they understand the rationale behind decisions and can adapt their actions accordingly.
As a Scrum Trainer, I’ve seen firsthand the transformative power of EBM in organizations. It’s not about hitting a specific number every time—it’s about using data to guide meaningful conversations and adjust your course when needed.
Remember, it’s okay if the data doesn’t always tell you what you want to hear. 📊 It’s a tool to help you get closer to your goals, not a measure of your worth or your team’s value.
Evidence-Based Management is all about balance. You want to leverage data to improve your organization’s outcomes, but without letting those numbers control your every move. Focus on the bigger picture:
Define your outcomes clearly.
Choose metrics that align with those goals.
Use data to inform—not dictate—your decisions.
By following this approach, you can create a culture where data is a trusted advisor, not a demanding boss. This shift can lead to better decisions, more engaged teams, and ultimately, greater value delivery for your customers. 🚀 Now, go forth and let data be your guide—not your master!
If you've made it this far, it's worth connecting with our principal consultant and coach, Martin Hinshelwood, for a 30-minute 'ask me anything' call.
We partner with businesses across diverse industries, including finance, insurance, healthcare, pharmaceuticals, technology, engineering, transportation, hospitality, entertainment, legal, government, and military sectors.