Understanding the Difference: Traditional Management vs. Evidence-Based Management

What Is Traditional Management?

Traditional management is a term often used to describe the approach many managers have used for decades, if not centuries. While the term “traditional” might seem outdated, it’s a method that many still rely on. In essence, traditional management practices are:

• Experience-based: Decisions are often made based on past experiences rather than current data.

• Top-down decision-making: Managers make decisions independently or escalate them up the hierarchy.

• Focus on authority: The manager or someone senior typically has the final say.

One personal story highlights this well. I gave my father a book on evidence-based management about ten years ago. He read it and told me, “Oh, that’s what I’ve been doing for the last 40 years in my company!” This shows that the principles of evidence-based thinking have been around for a long time but weren’t always framed in this way.

Evidence-Based Management: A New Perspective

Unlike traditional management, evidence-based management requires a shift in how we make decisions. It’s about:

• Collecting data 📊: Gathering quantitative and qualitative data is at the heart of this approach.

• Analyzing evidence 🧠: Making decisions based on what the data reveals rather than gut feelings.

• Validating outcomes ✅: Ensuring that decisions lead to the desired outcomes through continuous measurement and adjustment.

This method is particularly challenging because it requires patience and diligence. It’s not about making decisions based on what feels right at the moment but rather relying on what the data tells us.

Why Evidence-Based Management is Hard

Evidence-based management is not easy, and many managers struggle to adopt it. Here are a few reasons why:

• Time-consuming ⏳: It takes time to collect and analyze data before making a decision.

• Resistance to change 🛑: Managers who are used to making decisions based on intuition may find it difficult to shift to a data-driven approach.

• Focus on vanity metrics: Too often, managers focus on metrics that make them look good rather than those that reflect real progress.

Vanity Metrics vs. Valuable Metrics

A common pitfall in evidence-based management is focusing on “vanity metrics.” These are metrics that:

• Make managers look good 📈

• Are easy to collect but don’t necessarily drive value for the organization.

• Include things like story points, velocity, or the sum of tasks completed per sprint.

Example: Imagine a product owner who makes decisions solely based on velocity—the sum of story points completed each sprint. This might look impressive on paper, but it doesn’t necessarily mean the product is delivering value to the customer. It’s like judging a race based on how fast a car is going without considering if it’s going in the right direction.

Common Decision-Making Pitfalls in Traditional Management

In traditional management, decision-making often happens in one of two ways:

1. Making it up 🤷: A manager might make a decision based solely on their authority without consulting data.

2. Escalation-based decisions 📢: When a manager is unsure, they ask someone more senior to make the decision, leading to a reliance on hierarchy rather than evidence.

Both approaches can lead to suboptimal outcomes, especially when dealing with complex, multi-million-dollar decisions. Instead, managers should be asking:

• Why are we making this decision?

• What do we hope to achieve?

• How will we measure success?

The Importance of Asking “Why?”

Just like a courtroom requires evidence before reaching a verdict, organizations should require evidence before making decisions. This involves:

• Gathering evidence 📑: Collecting data that is relevant to the decision at hand.

• Analyzing data with a team 🧑‍🤝‍🧑: Bringing together diverse perspectives to interpret the evidence.

• Making informed decisions 💡: Using the data to guide the direction of the team or organization.

This approach helps to avoid making decisions based solely on gut feelings, which can be unreliable.

Story Points, Velocity, and the Danger of Misinterpretation

One of the most glaring examples of misused metrics in Agile environments is the obsession with story points and velocity. Here’s why it’s problematic:

• Story points and velocity can be misleading: Outside of the team’s context, these metrics don’t provide a true picture of progress.

• Managers focus on looking good rather than delivering value: Decisions are made to improve these numbers, even when they don’t reflect real progress.

A Better Approach: Focus on Systemic Impact 🌟

To truly embrace evidence-based management, leaders need to look beyond vanity metrics and ask deeper questions:

• Is this metric helping the entire organization achieve its vision?

• Are we focusing on the outcomes that matter most to our customers?

• Are we validating our assumptions with real data?

By focusing on these questions, managers can make decisions that are good for the entire system, not just for their own performance reviews.

Transforming Organizations with Evidence-Based Management

Making the shift from traditional to evidence-based management is not easy, but it’s essential for organizations that want to thrive in a data-driven world. Here’s how managers can start:

1. Commit to data collection 📊: Make it a habit to gather data regularly before making any major decision.

2. Encourage team-based analysis 🧑‍🤝‍🧑: Bring in diverse viewpoints to analyze the data and avoid biases.

3. Validate outcomes ✅: Continuously measure the impact of decisions to ensure they align with the organization’s goals.

4. Avoid vanity metrics 🚫: Focus on metrics that drive true value rather than those that look good on paper.

Personal Experience: The Shift in My Own Practice

When I first encountered the concept of evidence-based management, it was a game changer. I used to think that making decisions based on my experience and intuition was enough. But I quickly realized that:

• Data provides a clearer picture: It highlighted issues that I wouldn’t have noticed otherwise.

• Collaboration leads to better insights: Working with my team to analyze data brought out perspectives I hadn’t considered.

• Validating outcomes helped us course-correct: By continuously measuring our progress, we could make adjustments faster, leading to better results.

Final Thoughts: Embrace Evidence for Better Decision-Making

Evidence-based management is not just a buzzword; it’s a way to make smarter, more informed decisions. While it might be challenging to adopt at first, the benefits are clear:

• Better alignment with organizational goals 🎯

• More informed decisions 🧠

• A culture of continuous improvement 📈

The next time you’re faced with a decision, ask yourself: Are you relying on evidence, or are you just making it up? Embrace the challenge, and you’ll see the difference it makes for your team and organization. 🌟