Evidence-Based Management (EBM)

Management based on evidence. Duh.

In other words, managers who use actual data, research, and scientific evidence to at least inform their decisions.

Example:

Shawn is part of a management team for a car manufacturer. The group is looking for a spot to open a new plant. The rest of the team is interested in a spot in California because the land is extremely cheap. That’s where their research ended. Cheap. But Shawn is smart. He searches more in-depth.

It turns out that the location is right on the San Andreas fault line and that the insurance on the building would be so high it would make the plant far less economical. In addition, he looked at crime statistics and saw that there is a massive vandalism issue in the area, along with car jackings. The cost for increased security compounds the problem, not to mention the possible need for constant repairs…and that pesky insurance.

Shawn gets his energy drink…actually, a whole four-pack…and starts poring over topographical maps. He gets maps of various weather patterns. He looks at crime maps. His eyes water like crazy and he uses eye drops constantly to keep them from drying out. Finally, he finds a great spot in Texas where there’s no significant risk of earthquakes, tornadoes, or hurricanes. It’s a little remote, but the land is still inexpensive. More importantly, the insurance is cheap. Also, due to the location, there’s almost no crime, although there might be some weird, cult-like rituals in the woods nearby late at night. Fortunately, the plant won’t be open at that time, so no one has to see it.