🥇 Employee Suggestion Systems: A Good Manager Does Not Make Decisions Based on Results and Data

Remigiusz Horbal's article from Lean Enterprise Institute Poland, titled “A Good Manager Does Not Make Decisions Based on Results and Data,” provides a critical look at the contemporary approach to management, which often relies solely on data analysis. Horbal starts by stating that many managers, though frustrated by business complexity, still believe it can be simplified to algorithmic decisions based on results and statistics.

The author gives examples of such simplifications: punishing an operator for low performance, lowering prices in response to sales drops, or tying bonuses to the number of errors in settlements. He points out that this approach is misleading because data reflects only fragments of reality, not the full picture. Horbal illustrates this with a simple drawing by Liz Fosslien, showing that results do not always reflect efficiency, considering the starting point.

The problem with data, as Horbal notes, is that it often shows symptoms of a problem but rarely its source. He gives an example of a factory where a machine frequently breaks down. Data shows downtimes but does not explain why they occur. Only root cause analysis, reaching improper feeder cleaning, reveals the real issue.

Horbal emphasizes that true understanding requires direct involvement in the place where work actually happens – so-called “gemba.” He encourages managers to spend time on the production floor, in the office, or store to better understand real conditions and processes. The author argues that only this way can accurate decisions be made, rather than relying solely on desk analyses.

Horbal's article is an important voice in the discussion on the role of data in management. It highlights the need to combine data analysis with direct operational experience, which is key to making effective decisions in a complex business environment.