Today’s
challenging economic times demand that the companies make the right management
decisions in order to survive. Technological
developments mean that companies are able to capture and store vast quantities
of material, but they often fail to use this effectively to support decision
making.
According
to Robert Sutton, professor of management science and engineering at Stanford University,
EBM is a simple idea based on finding the best available evidence, accepting
these facts and acting upon them.
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5 Key Steps
TO EBM
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1.
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Defining goals and information
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·
Determine
the strategic objectives
·
How to
achieve them
·
Organizations
must be more systematic and selective about collecting information.
·
Managers
need to establish clear objectives and information requirement.
·
Objectives
of information needs
1)
Identify
need
2)
Ensure
relevant to the organization competitive positioning
3)
Not just
the irrelevant interesting to know
4)
Identify
who needs the information
5)
Define the
target audience.
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2.
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Collecting the right evidence
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·
Gather and
organize the relevant facts and figures to meet the information requirements
identified.
·
Have the
relevant information to support decision making
·
Building
evidence requires the careful collection of the right data
·
Data come
in many form, including text images.
·
Asking
people for opinion is usually a good way of collecting qualitative data
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3.
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Analysing data
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·
Information/data
collected need to be converted into relevant in sight.
·
Data
analysis in the core requirement in creating evidence.
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4.
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Presenting information
|
·
Communicating
the insights.
·
Main focus
is to get the information to the decision makers in the most appropriate form
·
Present
and package the information in the most appropriate way.
·
Good
communication should be simple and focused on the key messages.
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5.
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Making evidence based decisions
|
·
It’s about
converting information into action
·
Important
to avoid the ‘knowing-doing’ gap
·
Turn the
information into knowledge and better decisions on which organisations can
act
·
Use it to
create a culture that help transform knowledge into action.
·
Create a
passion for learning and improvement
·
Ensure
support from leadership
·
Develop
widespread analytical capabilities
·
Use
judgement
·
Share
information
·
Build an
appropriate IT infrastructure.
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Shared from article by
Bernard Merv
Chief Executive
Advanced performance Institute (UK)
Accountant Today,
September 2009
