Understand the key theories and concepts that inform this process. In other words, identify what we already know about this type of process. Jeffrey Pfeffer and Robert Sutton in their book Hard Facts, Dangerous Half-Truths and Total Nonsense: Profiting from Evidence-Based Management make the point that practitioner’s actions and practices are often not based on the latest scientific theory and are often practices that we already know do not work. The following three activities are designed to make sure the new design is informed by the latest research and thinking and avoids applying concepts and characteristics in ways or situations we know do not work. This step is composed of three related activities including: the identification of leading thinkers and ideas; identification of leading theories; and the identification of empirical evidence related to the application of these ideas and theories to various situations.

Step one: Leading Thinkers - Identify the leading thinkers and understand their leading edge ideas. Often the first step is to identify the leading thinkers in this area or system (e.g., strategic management). Once the leading thinkers are identified review their most recent ideas and concepts (e.g., business books, practitioner magazines, academic journal articles). An important consideration when identifying leading edge ideas is the “pedigree” of the source. Many published popular business concepts have little research or empirical evidence supporting them. Some of the leading thinkers in the strategic management field include: Michael Porter, Henry Mintzberg, Robert Kaplan, David Norton, Peter Schwartz, to name just a few.  

Step two: Leading Theories - Identify the leading theories and concepts related to the particular management system. What are the established theories related to this particular area or system? What do they tell us about the design of the system? Make a list of design guidelines based on the theories. As others have noted – “there is nothing more practical than a good theory.” A few of the many theories and concepts related to strategic management include:    

1. 1.SWOT – Strengths, Weaknesses, Opportunities, and Threats analysis originally developed at the Harvard Business School
   

2. 2.Michael Porter’s - Value Chain Analysis
   

3. 3.ADL’s - Life Cycle Matrix
   

4. 4.Boston Consulting Group’s - Growth Share Matrix
   

5. 5.Henry Mintzberg’s Fallacies (prediction, detachment, and formalization)
   

6. 6.Strategic Thinking v. Programming
   

7. 7.Deductive v. Inductive Strategy Development
   

8. 8.Detailed and fixed strategic plans v. emergent and dynamic strategies
   

9. 9.Royal Dutch Shell’s - Scenario Planning
   

Step three: Core Values and Concepts - Discuss how the 11 Baldrige Criteria for Performance Excellence core values and concepts apply to this particular system. Read more...

Step four: Empirical Evidence - Identify the empirical evidence – what works and what doesn’t work. This step might seem redundant and occasionally it is. However, it is one more opportunity to find out the latest research findings on the specific theories and concepts that you have chosen to use from steps one and two above. In particular, it is an opportunity to identify in what situations the previously identified concepts and theories have been tested. While some concepts work very well in certain situations, they often fail to deliver the desired results in other situations.   

References and Recommended Reading

Each area to address section in the BUG book includes a “plain language” explanation of the concepts identified in the criteria;  see the “Foundation” in each section. This foundation description is a starting point and needs to be supplemented with the current thinking and empirical evidence on the particular process.

Pfeffer, J., & Sutton, R. I. (2006). Hard Facts, Dangerous Half-Truths and Total Nonsense: Profiting from Evidence-Based Management. Boston: Harvard Business School Press.

To become familiar with the 11 core values and concepts in the Criteria for Performance Excellence I recommend reading pages 49 through 54 in the 2009-2010 NIST Criteria

Download Criteria (PDF)

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