In every country, considerable company productivity increases can be realized by transformation and improvement of current management styles. Although it is true that in some countries the number of companies with serious management-connected gaps is relatively lower (the USA) and in some relatively higher (India), increases influenced by management change can be substantial everywhere.
It is possible to assess core and crucial elements of management. Well-managed companies achieve higher productivity, growth and market value. They also have a better chance of surviving adverse macroeconomic conditions during recessions and crises. These are the main findings of a study conducted by McKinsey in collaboration with London School of Economics and Stanford and Harvard Universities. Another interesting finding is that there is a significant number of poorly managed firms in virtually all countries and across all sectors.
Multinational companies and dynamism
These big companies tend to be the most productive ones, regardless of what country they operate in. The country of origin also doesn’t matter. However, multinational companies based in countries with emerging markets will, in the future bring in new technologies and knowledge, therefore stimulating not only themselves, but at the same time the rest of their country’s economy. These companies will be sources of major market dynamics and productivity increases. Further, as these multinationals firms become more and more productive, their domestic competitors will also be forced to become better and more effective.
Blindness of managers
In the study there was no correlation found between the opinions of managers on their own management practices and the evaluation by McKinsey. A possible solution may be to rotate senior managers between countries where the company operate. The result would be that the best management practices could be implemented.
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