Freakonomics Radio:
What does a CEO actually do?
17 January 2018
Today on Freakonomics Radio, we’re launching “The Secret Life of C.E.O.’s,” a special series that’ll get inside the minds of these rare and rarified creatures. Some of the questions we’ll be asking: What do C.E.O.’s actually do? What makes a good C.E.O. — and how can you even tell? Why do C.E.O.’s make so much money — and are they worth it? How did they get to be where they are? And: is it lonely at the top? You’ll hear from lots of big-time C.E.O.’s as well as the academics who know them best. And, if you find yourself thinking – hey, I’d like to do that too … Nicholas BLOOM: It’s frankly a horrible job. I wouldn’t want it. * * * Let’s begin with this guy … BLOOM: I’m Nicholas Bloom. I’m a professor of economics at Stanford University. DUBNER: And if I were to just ask you, what’s your general specialty? BLOOM: I work on trying to understand management practices, so, why some firms are better-managed than others, and how that helps improve their performance. …Raffaella SADUN: I deal with people who are going to be C.E.O.’s one day. That is Raffaella Sadun. She’s an economist who teaches at Harvard Business School. SADUN: I’m very interested in understanding how management and managers affect firm performance….Raffaella Sadun, along with Nicholas Bloom and the M.I.T. economist John Van Reenen, analyzed data from more than 12,000 companies to try to learn what makes some better than others. “Management practices,” they wrote, “can account for a large fraction of performance differences.” And yet, they argued: “achieving operational excellence is still a massive challenge for many organizations.”
Related links
Management Practices and Organisational Structures research webpage: http://cep.lse.ac.uk/_new/research/growth/management_practices_and_organisational_structures.asp