Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management |...

Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management | Jeffrey Pfeffer, Robert I. Sutton | No 'one size fits all' solutions here

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Hard Facts, Danger...

	Hard Facts, Dangerous Half-Truths And Total Nonsense: Profiting From Evidence-Based Management Jeffrey Pfeffer, Robert I. Sutton Harvard Business School Press, 2006 - 276 pages average customer review:based on 36 reviews view larger image
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highly recommended

Find your company in this book and squirm

This excellent book lays out why and how companies fail to drive their business based on evidence, and instead "miracle cure" advice and personal reactions - largely to the detriment of everyone involved. The book quickly lays out why you should take an evidence-based approach and some guidelines on how. The meat of the book comes in chapters on various half-truths that are dangerous in terms of managing people and organizations:

- Is work fundamentally different from the rest of life and should it be
- Do the best organizations have the best people
- Do financial incentives drive company performance
- Is strategy destiny?
- Is it change or die
- Are great leaders in control of their companies (and should the be)?

They wrap up with a call for evidence-based management. The book is well-written, funny in many places and slightly depressing (if you don't see yourself or your company in any of the "how not to" stories I will be astonished) but very worthwhile. Some of my favorite quotes include:
"If doctor's practiced medicine the way many companies practice management, there would be far more sick and dead patients, and many more doctor's would be in jail"
"If you think you have a new idea, you are wrong. Someone problably already had it. This idea isn't original either; I stole it from someone else
Sutton's Law"
"Treat your business as an unfinished prototype"
"No brag, just facts"

In particular they recommend making sure you have identifed cause and effect when considering past successes, taking account of changing circumstances and establishing why something was effective before adopting it. They emphasize the importance of attacking assumptions and establishing which are pre-conditions for success. The book lays out plenty of evidence on the importance of narrow testing of new ideas before rolling them out, especially in ways analogous to the double-blind study used in medicine. They discuss the importance not of individual leaders being great but of them building a structure within which people can be successful (think Toyota) and they conclude by reminding us that wisdom is knowing what you know and what you don't know while still acting on the best available data and being willing to change as new data becomes available.

I would also recommend three other books I have reviewed recently:
Competing on Analytics: The New Science of Winning
Tom Davenport's book shows one aspect of evidence-based management - driving company behavior with analytics - and uses some of the same examples (Harrah's, for one)
Making Robust Decisions: Decision Management For Technical, Business, & Service Teams
David Ullman's book is a great discussion of decision-making in the face of uncertainty, a key skill in evidence-based management
The Halo Effect: ... and the Eight Other Business Delusions That Deceive Managers
Phil Rosenzweig's book disses many of the same business trend half-truths with even more wit than this one. If you are cynical about fix-everything-with-technique-X books, and you probably should be, this is a great book

Lastly if you are more technically minded and enjoy this book, you might enjoy the one I have just finished:Smart Enough Systems: How to Deliver Competitive Advantage by Automating Hidden Decisions

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No 'one size fits all' solutions here

In this well written book, Stanford Professors Pfeffer and Sutton demonstrate the dangers of copying others, blindly applying conventional wisdom, or accepting ideologically based fables without understanding how the underlying human behavioral principles and fundamentals apply to the situation at hand. It asks us to look at the underlying assumptions about how people think and operate - are people really motivated only by the stick or the carrot? Is the relational model for the `rest of life' really different than the relational model for our `work life'? If neither assumption is a fundamental truth, should we be using policies and practices that make these assumptions?

It encourages leaders and organizations to constantly `be in learning' rather than looking for `the answer' in a best practice book or seminar. Simply put, `copy & paste' of someone else's answer is seldom, if ever, your answer on a performance improvement test. If you are thinking that evidence-based management means, "show me who is using this practice", or "show me where this policy is working"; read the entire book. What at first sounds like a declaration that only statistically proven, historical practices should be accepted as the basis for future practices is in itself a dangerous half-truth that will limit the future to a repeat of the past. Hard Facts is recommended for leaders who will read the book in its entirety. Dennis DeWilde, author of "The Performance Connection"

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Hard to Believe

Pfeffer & Sutton's book is all about how bias and incorrect "common sense" can lead us astray in making management decisions. They show how a great deal of what passes as business management advice is just not all that good. In fact, some of it is, as the title says, total nonsense.
That said, it was far less of a book than I wanted it to be. The title, you see, has this really bold lettering for HARD FACTS. In smaller type underneath is the rest of the title. In fact, on my copy the Total Nonsense is in bigger type than the Half-Truths part (the latter even being gray on a black background). Yet, as I read the book, I kept looking for the HARD FACTS and found a lot of references to Half-Truths. The basic premise seems to be that while most advice is correct in some settings, it is only when it is taken as truth for all time that it becomes dangerous.
I wanted graph after graph of facts from all the studies people mention but never put into digestible form. I wanted to get the translation of management studies into facts that I can use. However, what I did get was basic management book stylistic convention: assertion of some truth followed by an example from one of seven (plus or minus two) case studies. Not that this is all bad, far from it. But it seemed sad given the large HARD FACTS on the top. In fact, I find the convention easy reading. But it doesn't really give me the HARD FACTS. I guess I would have to go into the footnotes (ugh), read all the studies mentioned (ugh, ugh), and then draw the graphs, charts, and summaries (ugh, ugh, ugh). That is what I thought this book would do and doesn't.
So I think it becomes another interesting book that will be put aside for another interesting book in about five months. Are there good insights? Sure. Do I trust all their sources? I don't know why I should since they never explain why they do (the "lots of studies" logic). So maybe they are right, but it is hard to believe.

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A balanced, practical look at management "beliefs"...

Pfeffer and Sutton take a hard look at a few management beliefs that have seemed universally accepted in one form or another. Of the ones presented, I have heard and read the most about 1) best organizations have the best people, 2) strategy is destiny, and 3) change or die. The authors have done a very good job at showing that some beliefs are not always true under all circumstances and, in fact, quite often false or at least "half-truths". I also found the financial incentives chapter particularly compelling as it seems that a more balanced reward system is better for most companies in the long run.

I found most of the advice for handling these beliefs to be very sound although a recurring theme is just take a step back, look at hard evidence, and not necessarily follow "the crowd". This book would be best appreciated and most easily "implemented" by executive management but is also a very interesting read for anyone who wants to build out their general management knowledge. Overall, a pretty insightful and practical read.

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Finally ... A Management Book Worth Reading

The problem with the puffed up, presumptuous world of management literature and research is that it is trying to put a new gloss on a dismal study strikingly devoid of new research and insights into human nature. Most books are an appalling mixture of presumed truths and mishmashed ideas set up as "science." In fact Management is much more a dismal art than Economics ever was a dismal science.

But now enter the duo who wrote this book... the true essence of the book could be:

1) lesson of wisdom... wisdom in the Platonic sense -- knowing what you do not know and being smart enough to admit when you do not know and brave enought to continue on;

2) evidence-based management. This means empirical management, hard facts, not preconcieved notions of how the world is or should work.

Evidence-based management is based upon a scientific approach and this book take evidence-based medicine as its template for how to arrange business. In evidence-based management there is no immutable truth -- science and the socratic method of inquiry mean that the playing field is level. People are able to challenge preconceived ideas, but they must also be willing to submit their ideas to the scrutiny of analysis. Pfeffer et al, give good examples of preconcieved ideas that are either not true or half-baked. Incentive pay is one -- it works in simple, non-dependent environments where individuals control results. It does NOT work in highly structured environments where results depend upon complex interactions with others... ie. Cold-callers should be incentivised by pay-for-performance, but doctors and teachers clearly should not -- and all the imperical evidence supports the above assertion.

So why do people have such a knee-jerk reaction and assume that everyone only needs to be incentivised to spur them ever onwards to better results...? Pfeffer et al, suggest that it is popular culture and sort of presumed ideological supposition that is never challenged.

Other ideas challenged in this book by Evidence-based Management tecniques are:

STRATEGY: Its nowhere near as important as knowing what to do. In fact concentrating only on strategy is most often wrong. What is much more necessary is having a process to implement changes little by little.

LEADERS: Not as important as billed. Change at the top has almost no correlation with corporate performance. Leadership does matter to a degree, but not as much as good systems of work. Here again is the banal overwhelmed by the sexy presumption that someone who is in power of a company must "actually control results" -- as Pfeffer et al show... they clearly do not. Good process, good middle line managers who implement well and who know and listen to process management determine which companies will succeed more than good leaders.

This book was one of the few management tomes that I actually looked forward to reading when I picked it up. I have already ordered "The Knowing-Doing Gap." A very refreshing change and real wisdom for a wretched genre.

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reviews: 1, 2, page 3, 4, 5, 6, 7, 8

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