There is an urgent need for business leaders to apply practices to keep improving workplace performance, consistently and predictably.
- Technology and Innovation
- Social Networks online
- Demanding clients
Management in many organisations is still supported on assumptions (“pre”-“supposed”, in other words, prior assumption or hypothesis unconfirmed) which leads to difficulties in survival and therefore sustainability in their habitat by not making proper use of the resources available.
According to Leandro Pereira, President of BCI, the biggest barrier for successful investment decisions are the assumptions. Assumptions are a synonym to no accuracy and no predictability, due to the lack of scientific techniques and tools used to validate the results under analysis.
Business management has suffered greater improvements through the systematic and deliberated approach to management, by questioning what is obvious and what is common sense, testing processes in various contexts and organisations and validating results, while in constant search of practicing optimal management and becoming a universal management in the matter under consideration.
The principle underlying the scientific management is that two different entities reach the same conclusion about a particular phenomenon of management. Thus, the scientific management applied to Business Cases aims two different teams to obtain the same conclusions about the ROI of a particular project.
The following table presents the main differences between a common sense management and a scientific management:
|Common Sense Management||Scientific Management|
|Acquired on ordinary business and daily living
Unreflective opinions of ordinary people
|Systematic approach to management
Pursued deliberately and systematically
Based on personal experience
Looks what is applicable across all situations
|Process not tested
Each time a different process is applied
|Process tested in several contexts and organizations
|Accept the obvious
Some discoveries are not true
|Questions the obvious
Start the search from the common sense answer
|Cannot rely on consistent results||Yields the same results or very similar results when conducted by two different people under the same circumstances|
|Gained through uncontrolled experience||Gained through controlled experiment|