SADUN, BLOOM, AND VAN REENEN
Core Managerial Practices
In our research, we assess the sophistication with which organizations man-
age the four broad dimensions— and the 18 specifi c aspects— of management
shown below. The list varies slightly depending on sector (this one is for man-
ufacturers). It’s not exhaustive, but companies that manage these fundamen-
tals well tend to have high levels of overall operational excellence.
Operations Management
- Use of lean techniques
- Reasons for adopting lean processes
Performance Monitoring
- Process documentation
- Use of key performance indicators
- KPI reviews
- Discussion of results
- Consequences for missing targets
Target Setting
- Choice of targets
- Connection to strategy, extent to which targets cascade down to individ-
ual workers - Time horizon
- Level of challenge
- Clarity of goals and measurement
Talent Management
- Talent mindset at the highest levels
- Stretch goals
- Management of low performance
- Talent development
- Employee value proposition
- Talent retention