Management Practices: Company Leaders Often Overestimate Leadership Skills
Dr Christos Genakos, Cambridge University and Centre for Economic Performance (CEP) at LSE London School of Economics
Wednesday, 18 June, 12:00 to 2:00 p.m.
DIW Berlin, Mohrenstr. 58, 10117 Berlin
Schumpeter Hall, First Floor
Chair: Dr Ray Cunningham, London, Director Anglo-German Foundation
CEP's global survey of over 4,000 firms reveals huge variations in the quality of management practices and shows that
• German managers tend to overestimate their own management skills compared with their company’s actual performance
• German firms that most critically self-evaluate their management practices are the best run companies in reality
• 15 per cent of German firms are managed worse than the average firm in China and India
• family ownership and the traditional practice of primogeniture – handing down the CEO position to the eldest son – are associated with particularly bad management practices
• private equity firms, in Germany better known as Heuschrecken (locusts), are better managed than companies with other ownership forms
• the productivity gap between US and European companies seems to be in reality a management gap
The global study by the Centre for Economic Performance is supported by the Anglo-German Foundation based on its programme Creating Sustainable Growth in Europe (csge).
Christos Genakos is a Lecturer, Fellow and Director of Studies in Economics at Selwyn College, Cambridge University. He is also a research economist at the Centre for Economic Performance (CEP) in the London School of Economics. His research focuses on Industrial Organization and Applied Microeconomics. Recent work includes welfare analysis of mergers in the PC industry, examining foreclosure incentives in the PC and server operating systems market, estimation of the “waterbed” effect in mobile telephony and evaluation of international management practices.