Network News

X My Profile
View More Activity

Send food -- and management textbooks

Ray Fisman summarizes recent research showing that management consultants can help companies in developing nations make huge productivity gains:

In an earlier study, Bloom worked with a pair of London School of Economics researchers to conduct a worldwide survey of management practices, using metrics of management quality similar to those employed by Accenture. They hired MBA students to interview managers at corporations in 17 countries. India ranked third from the bottom -- just behind Brazil and one position ahead of China. Together, these three terribly managed economies constitute nearly 40 percent of the world's population. [...]

The study's findings suggest that we might do well to direct at least some of our aid funds toward building business schools in India and elsewhere in the developing world to provide their economies with the consultants and middle managers they need to create the corporate bureaucracies we so love to hate in America. Study co-author David McKenzie argues that another implication is that India should allow more multinationals to set up shop to serve as training grounds for managers. Of course, these multinationals will also drive the worst-managed Indian companies out of business, making this proposal a tough sell in a country with a history of economic nationalism.

By Ezra Klein  | October 13, 2010; 4:00 PM ET
Categories:  Economics  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Rattner: 'GM and Chrysler deserved to go bankrupt'
Next: Stopping climate change 2.0

Comments

Don't break my heart, Ezra. Did you really write "these three terribly managed economies"? As in, the ones that are growing by leaps and bounds and wiping the floor with the US? I don't know about India, but Brazil has plenty of management schools which faithfully parrot the same BS as business schools here. If something's throttling those countries' growth, I doubt it's a shortage of business jargon and theory.

Posted by: csdiego | October 13, 2010 4:25 PM | Report abuse

Don't break my heart, Ezra. Did you really write "these three terribly managed economies"? As in, the ones that are growing by leaps and bounds and wiping the floor with the US? I don't know about India, but Brazil has plenty of management schools which faithfully parrot much of the same BS as business schools here. If something's throttling those countries' growth, I doubt it's a shortage of business jargon and theory.

Posted by: csdiego | October 13, 2010 4:25 PM | Report abuse

"India ranked third from the bottom -- just behind Brazil and one position ahead of China. Together, these three terribly managed economies constitute nearly 40 percent of the world's population"

A far different, and probably more realistic, assessment of the power of the rising economies than usually provided by all the mouth-breathers who are sure we're about to be economically taken over by China. Reminds me of the assessment of the USSR in the late 1980s, when we were sure they would finally 'bury' us.

Posted by: Jaycal | October 13, 2010 6:42 PM | Report abuse

Because Accenture, which changed its name because the previous one had become toxic (and even on the consulting side had a long string of debacles behind it) is certainly the last word on how to manage enterprises effectively in a developing economy.

Why, I'm sure that if Brazil, India and China adopted all the latest management techniques they would achieve the stellar growth rates of, say, the US and Japan.

Posted by: paul314 | October 14, 2010 11:09 AM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company