How to increase business productivity: manage less

An economist in Örebro, Sweden, has in his recently-defended doctoral thesis shown that worker productivity increases in companies facing closure. The reason put forward by Magnus Hansson to explain this is that when management is distracted from daily operations, the employees of failing firms shoulder a greater responsibility for their work, and efficiency is thus enhanced.

People complain about managerialism, and for very good reason. It is an impediment to good governance, whether that be of state and local authority agencies, or commercial concerns such as those studied by Dr Hansson.

The answer is to manage less.