Managers Overrate Themselves - Business Insider

Companies vary a great deal in the quality of their management practices. Otherwise we wouldn't have the huge range of successes and failures we see every year. Companies drop in and out of the Fortune 500, failing and exploding in growth.?

Despite that, according to a study written up in the HBR of 8000 manufacturers in over 20 countries by Nicholas Bloom of Stanford and his co-authors, 79 percent believe their management practices are "above average."?

However, after interviewing managers at these many plants and evaluating their management practices in 18 different areas, the researchers found that?15 percent of US companies and less than 5 percent worldwide averaged above a four on a five point rating of management practices. 30 percent of US firms were at a 3 or lower, as were more than 70 percent in India, China, and Brazil, meaning they don't collect even basic performance data.?

It's possible that many of the respondents were simply unwilling to admit poor performance in a survey, but if they're unaware that their practices are substandard, that's a huge problem, because they aren't seeking better options or working to improve.?

Designing good management practices takes a very long time and significant investment in data collection and figuring out how to offer good incentives. That doesn't happen if no one acknowledges there's an issue. ??

Read the full article here

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Source: http://www.businessinsider.com/managers-overrate-themselves-2012-10

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