Despite the best intentions, business decisions aren’t always completely rational. Some are biased to support an internal objective; others are guided by unvalidated information. Making business decisions this way doesn’t have the best results. It’s easy to misplace resources or allocate capital in a less-than-optimal way.

At 4tell™, we champion evidence-based decision making. That means that first, you should focus on data and business priorities. Then you can develop a concise, process-driven approach, which will guide management of important aspects of your operations.

What is Evidence-Based Decision Making?

Evidence-based decision making is the process of making logical choices. That means going beyond instinct, and basing decisions on empirical data, experience and context. The goal is to develop fully supported and validated decisions.

This report provides a great overview of evidence-based decision making. It highlights several key factors key to this framework:

• Best available research. Use a scientific, pragmatic approach to data gathering and research. This includes peer reviewed articles and published works.
• Experiential evidence. Work with subject matter experts, both within and outside an organization, to form a decision.
• Contextual/stakeholders. Understand perspectives of groups who a potential business change will directly affect.
• Organizational Data. Use internal data to identify unbiased trends and business patterns.

The concept is widespread in business, academia and medicine. Evidence-based decision making requires the development of a rigorous process for data gathering, analysis and judgment.

Imagine that a state-owned organization wanted to add some sustainability features to their facilities. One executive heard about the benefits of solar panels. Then, he recommended it as an investment. Another executive did some research. He had little knowledge of building sustainability practices to start with. However, he read published studies, spoke with consultants and internal teams, and analyzed internal energy use data. Then, he recommended an HVAC system upgrade. The latter process, taking the evidence-based approach, results in a much more compelling (and validated) recommendation.

Analytics and Evidence-Based Decision Making

Big data is on the rise. So are analytics and performance software. And these trends support evidence-based decision making. In commercial real estate, information should back every business decision. This includes data on financial and operating performance, sustainability and building portfolios.

Does your organization want to use data to support decision making? We recommend taking these steps:

1. Identify your goals and research needs
2. Gather data, both externally and internally
3. Use your data analysis to build insights
4. Use data visualization and interpretation to increase understanding
5. Ensure your final decision is grounded in this evidence
6. Seek more data and information as necessary

How Performance Management Software Can Help

When your organization uses performance management software, many other things fall into place. It creates sound business processes, which form the foundation for evidence-based decision making. This involves establishing your performance requirements and what data you’ll need to collect to track your KPIs. It ensures your software gives you the information you need to support that effort. Fresh, current and accurate data is a derivative of a process like this. It leads to you and your team making accurate, informed decisions.

For more information on the evidence-based framework or 4tell™ Solutions, please contact us.

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