Business management

We are familiar with randomised controlled trials (RCTs) in healthcare, education, criminology, and social policy, but what about business management?

Many management interventions are generic,[1] covering the whole of an organisation. I came across a really interesting RCT of such an intervention recently where whole factories were randomised.[2] The factories were textile organisations in India, and the intervention was to have, or not have, management consultant support. I have always had a rather nihilistic impression of the consultancy industry, but it looks as though I might have been wrong, as the intervention sites performed slightly better than the control sites in terms of an increase in productivity in the first year (17%), and the opening of more production plants (0.259 on average) within three years.

–Richard Lilford, Director of CLAHRC WM


[1] Lilford RJ, Chilton PJ, Hemming K, Girling AJ, Taylor CA, Barach P. Evaluating policy and service interventions: framework to guide selection and interpretation of study end points. BMJ. 2010;341:c4413.

[2] Bloom N, Eifert B, Mahajan A, McKenzie D, Roberts J. Does Management Matter? Evidence from India. Q J Econ. 2013; 128(1):1-51.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s